All Forum Posts by: Andrew Frowiss

Originally posted by @Aaron Macken:

@Frank Hinck Yeah I've been thinking about getting rentometer. As far as a property manager, if I've never done business with them I'm not sure how likely they'd be to just give up information. But it couldn't hurt for me to call and ask, right?

Hi Frank and Aaron, 

You should %100 ask a property manager to help you with comps. Some Realtors/PM companies might not do this, but I am working with investors right now who send me properties and ask for comps. I'm happy to do it, because I know these investors need the most accurate info, and most of my investors choose to have me manage the property as well. Some of my investors are also repeat clients, so as a property manager I LOVE to run rent comps for my clients. Just keep in mind if you send a PM company 100 houses and ask for a set of comps for each of them that may take a while haha. 

When I run my comps I usually give my investors a price range lowest to highest, of what I expect it to actually rent for as well as a starting price.

If your Property Manager/Realtor won't do this for you they might not be the best fit for you. The information on those websites isn't as accurate as data on the MLS. You don't have to invest alone, build yourself a reliable team!

Andrew

Hi @Victoria Hill

When I started out in real estate I was 19 and reading one of the books Brandon Turner wrote. I had no money besides a little savings, living at home with my parents, and knew one day I was going to be in real estate. I did real estate school online at night after my normal job, and eventually got my license 3 months later. I started a driving for dollars mailing list and sent letters. I did that for a while, but didn't close any deals (came close though). I was also making phone calls to try and find some good deals. I figured since I was also a Realtor if I couldn't purchase their home I could offer to sell it for a commission.

Long story short I had no money, but got good at finding good deals and partnering with others. Because I was able to get deals I had multiple people offer me financing and in return I partnered with them on the deal. This was my strategy when I was ages 20 to 22. 

Having the drive and finding the deals is how I was able to go from washing cars in the hot sun for money to owning a successful real estate business and working from home full time :) 

Don't get caught up in the "how" stage, and instead focus on "doing" things and tracking your progress to see what works.

Good luck!

Hi Ryan,

In my experience you do NOT need financing first. When I started out I didn't have money, but I was able to find deals and get them under contract. I found that if I got a house under contract for a good enough price, I had people left and right that wanted to give me funding if I partnered with them on the deal. All I worried about was finding the deal, and getting it under contract. Some investors have the money, but can't figure out how to get deals. I say it's better to know how to find deals, and worry about the money later.

My Broker in Austin TX has a retail cabinets store that sells a specific type of vinyl flooring that is supposed to be "life proof" (even water proof). I'm not sure if you could find the same type of flooring anywhere, but durable flooring for sure. Also I would like to make it a point to mention, replacing all of the carpet with vinyl/durable flooring. It is way to easy for spilt drinks, food and anything else to ruin carpet. When I buy my first vacation rental I'm planning on having no carpet at all.

@Brian G. Great advice! 

@John Paul In my mind there are 2 and potentially 3 options. I think Brian's advice is great depending on the numbers in your market, it's practical. If you do this strategy you are there physically to handle any problems yourself as they come up, which is great. One of the best benefits in real estate is your ability to physically effect your investments and change outcomes to an extent with preparation and research. 

Option 2 is invest somewhere either in another part of your state that is more affordable (maybe a couple hours drive like you are talking about) or in another state where the numbers make much more sense. With this strategy the sky is the limit since you can pick the markets with the best ROI, however this comes with additional problems. In this strategy one of he BIGGEST hurtles is finding a property manager or someone else to oversee the property for you that you TRUST. I know it seems like a daunting task, but remember people have been using this strategy for a long time, and they will continue to do so. Many of our clients use us to buy and manage rental properties in the Austin area while they are out of state, and it has been working well for them.

And lastly, to add onto John's post about living in 1 unit and renting out the rest. Try looking into house hacking a multifamily property like a duplex, triplex, or quadplex with the intent of doing Air bnb. If you can live in 1 unit and do Air bnb with the other units, your turn over will be much higher but depending on your market you can yield much more in rental income. You could even do Air bnb with 1 unit and put long term tenants in the rest.

If you decide to invest anywhere outside of your immediate area it is also a great idea to consider places where you have close friends or family. It doesn't hurt to have an extra pair of boots on the ground to keep an eye on things (even if you have a property manager).

Just my thoughts reading this, welcome to Bigger Pockets and good luck with your investments!

Looks like there is a good workshop happening in May in Austin. I am going. Is anyone else going to this? I think they offer a discount if I sign up with a partner.

www.thereimanual.com

Thanks Andrew.

@Lance Brown What are your investing goals? Are you trying to create passive income, or are you looking for a quick return? Is investing your full time job? There are plenty of pluses to both, but I would do whatever is most in line with my long term goals.

I wouldn't say anything that I'm not. Being honest and sincere goes a long way in many regards. I think honesty is always the best policy :)

@Brian Ellis How many in person showings are you getting for the property? It's normal to get online inquiries, but I would pay more attention to how many people are physically touring the property/applying. If there are little to know showings, it can potentially be a sign that price is a factor. 

@Mandi Martinez @Mandi Martinez I think a couple people have touched on this, but I think the biggest factor is what the rest of the neighborhood/immediate area looks like. Whatever you want to do it needs to be supported by previous sales. In Austin where we are, in certain areas it is perfectly reasonable to paint a house blue, or to do certain things that may be a little different. I know this example is exaggerated, but imagine tearing down an existing home to build a new one. What square footage should you build? How many bedrooms and bathrooms? How many stories? It just depends on the new construction comps that you have available. Look in the recent past and see what someone else did. I think as a rule of thumb when you are flipping a home you need to stick with the basics and what is more on the “normal” side, but if that whole neighborhood has blue and yellow homes than that is the “norm” in that immediate area. Just my 2 cents :)