All Forum Posts by: Alex Heidenreich
Alex Heidenreich has started 5 posts and replied 51 times.
Post: Lending for SFH below $50k
- Investor
- Columbus, OH
- Posts 55
- Votes 64
Originally posted by @Account Closed:
Man why you blowin up my keyword alerts, Columbus,OH is the one and only true Columbus.
I third this.
Post: Most Rents at or Below 25th Percentile on Rentometer
- Investor
- Columbus, OH
- Posts 55
- Votes 64
I've found Rentometer to be right around the average rate in Columbus, but I think it depends highly on the neighborhood. I would definitely agree not to rely on it 100% and research multiple avenues. Neighborhood Scout is another one that I have used for a really in-depth analysis on a neighborhood.
Post: Whats is everyone's opinion on paying 100% cash for properties
- Investor
- Columbus, OH
- Posts 55
- Votes 64
I'd agree with a lot of what has already been posted. The dreaded answer of "it depends." If your goal is to keep doing deals and keep the momentum rolling, then I would only do cash deals if I have a plan to get the cash back out fairly quickly (BRRRR or Flip). Otherwise, I would use leverage if possible to keep the cash in my pocket for the next deal while letting the tenants pay the mortgage.
Post: What Metric is your "Go-To" at-a-glance analysis for deals?
- Investor
- Columbus, OH
- Posts 55
- Votes 64
Originally posted by @James Allen:
For a quick glance to rule out properties, I look at the price and particularly price per square foot. That gives me my first indication as to whether the deal is even worth looking at any further. I wouldn't count calculations like cash on cash and irr as something you can figure out on a quick glance.
I like this take. I need to get better at looking at the price per sq foot. I've gotten a decent idea of how many beds/baths are normal in an area and what the rent goes for, but this doesn't tell the whole picture if the property is much smaller or larger than others with the same beds/baths.
Post: What Metric is your "Go-To" at-a-glance analysis for deals?
- Investor
- Columbus, OH
- Posts 55
- Votes 64
Originally posted by @Ryan Mainwaring:
Great question. I use 2 even though you asked for one...
- Cash on Cash – Net annual income / Cash invested. Goal – 10-12% and
- Property has positive cashflow of $100(with management) for long term or $700(w/o management) for Airbnb per unit per month
This is very similar to what we are looking for in terms of metrics. The straight $100 cashflow though is typically pretty market specific. Or do you look for at least that in all markets?
Post: What Metric is your "Go-To" at-a-glance analysis for deals?
- Investor
- Columbus, OH
- Posts 55
- Votes 64
Originally posted by @Jim K.:
As a handyman investor in C-class SFR buy-and-hold, the first thing I look at is no metric at all. I look at the design of the property and the quality of its construction. Will it be viable for the next twenty years? If it's not viable right now, what steps will I have to take to make it viable?
What conditions are present that could interrupt, say, a 20-year run, or make it extremely expensive? Are there any complicated condition issues that can't be changed except at great expense and make running the place more difficult? How easy is the place going to be to maintain over the long haul (once I dial it in)? How close is it to my home base? What's the street like, the immediate neighbors like? How well is it going to photograph for rental purposes when I put it on the market?
The key thing: HOW EASILY AND HOW WELL DOES THIS PROPERTY FIT INTO MY BUSINESS MODEL?
I really can't emphasize how important this deeper, more focused understanding of the property is if you intend to leverage your handyman skills, build a hands-on portfolio, and reap the significantly increased benefits of locally investing in this kind of real estate over the long haul. The metrics come second, a strong understanding of what's easy and profitable to run in your local buy-and-hold business model comes first.
Post: What Metric is your "Go-To" at-a-glance analysis for deals?
- Investor
- Columbus, OH
- Posts 55
- Votes 64
Originally posted by @Assaf Arie:
I’ve yet to find anyone that does this, however I use rent to property tax ratio (need to know the local market for this to work).
This is interesting. I haven't met anyone who does this. Is this just to try to improve cash flow by ensuring taxes aren't too high?
Post: What Metric is your "Go-To" at-a-glance analysis for deals?
- Investor
- Columbus, OH
- Posts 55
- Votes 64
Originally posted by @Khaled El Dorry:
@Alex Heidenreich I have a spreadsheet built on my iPhone and I set very conservative rents, high repairs, capex, vacancy, property management + PIT and if all that generates anything over 4-5% CoC returns I pull the plug. Exercise takes me 10 min
You do this on every property that crosses your desk? Seems like even ten minutes would add up if you are analyzing a lot of deals.
Post: What Metric is your "Go-To" at-a-glance analysis for deals?
- Investor
- Columbus, OH
- Posts 55
- Votes 64
Originally posted by @John Erlanger:
Originally posted by @Alex Heidenreich:
I typically look for the 1% rule based on ARV and an all-in investment of less than 75% ARV. Those are the most important metrics to me. What about you?
Is this a serious question? 1% rule is just a valuation metric used incorrectly! If you are in a 2% market you just over paid. If you are in a ,5% market you are not an investor.
Post: What Metric is your "Go-To" at-a-glance analysis for deals?
- Investor
- Columbus, OH
- Posts 55
- Votes 64
I typically look for the 1% rule based on ARV and an all-in investment of less than 75% ARV. Those are the most important metrics to me. What about you?