All Forum Posts by: Bill Plymouth

@Jesse Allen as mentioned above, real numbers are helpful.  But what you said above “he’s too nice of a guy to run the properties properly” gives me some concern.  My concern is that you may be inheriting properties with problem tenants.  Make sure you have some reserves in place to handle that situation if it comes up.  

@Alexander Vasquez I’m 25.  before I grew my beard I looked like a 12 year old Justin Bieber wannabe.  I know a kid fresh out of high school who just purchased his first investment property.    Save for hygiene, don’t take looks into consideration.  You have a plan.  I don’t care if God himself descends from heaven to try to stop you.  Surround yourself with rockstars, learn everything you can, and conduct yourself professionally.  Nothing can get in your way.  

@Felix Texidor good luck!  I hope it goes well!  

@Josh French I’m glad you’ve started looking for education.  Here are a few tips for you to get started:

Learn the 1% rule for rental properties.  

Analyze at least 1 property every day.  

Learn how to analyze a market.  Demographics, income, average rent, crime, etc

Start to save and live below your means if you don’t do so already.  Even if you aren’t using your own money, you want to have at least 6 months of reserves.

Realize that real estate is a long game.  This isn’t a get rich quick scheme.  You won’t be buying your first rental today then a Bentley tomorrow.  

Network!  Find the real estate investors association in your area.

Take action!  When it’s time to make a move, make that move.  Don’t get stuck in analysis paralysis.  

Keep educating yourself.  If you stop learning you stop growing.

I hope this kind of gets you started.  Good luck!

Totally! As long as the money you're putting in to add the bathroom and the extra square footage doesn't offset your ARV.

For example if you buy for 100k and ARV Is 150k don't put 70k worth of work into it. You'll be in the red. (these are just easy round numbers)

Also, check with your city/township or whoever you have to go to in FL to make sure you’re allowed to add the square footage.  You don’t want your plans to be ruined by bureaucratic BS.  Just do your due diligence and you’ll be good to go !

@Kimberley Keller learn about the 1% and 70% rules.  They are rules of thumb, but can help you get started in some basic analysis.  

Secondly, don’t fall in love with a deal.  If the numbers don’t work, then they don’t work.  Analyze at least 1 deal a day to practice!

Finally, just do it!  Take action and let your momentum carry you forward. Don’t be hasty and buy a bad deal, but when you find that good deal that’s right to take don’t hesitate.  You don’t want to get stuck in analysis paralysis.  The biggest part of success is actually taking action.  

Good luck!  I hope you find success in your journey. 

@Adam Rapoport I'm don't really look at condos for the reasons about the HOA fees mentioned above, but I feel like anything (if purchased correctly) can be a lucrative deal.

What I will add though, is if you do decide to go the condo route, make sure the HOA will allow you to rent it out. I would analyze the numbers as a flip and rental. Make sure you have a solid exit strategy.

Hope this helps!  Good luck. 

Look up the 1% rule for rentals.  Also, familiarize yourself with the 70%.  

They are just rules of thumb but they can  be helpful!

Some good advice I’ve received, don’t fall in love with a deal.  I feel it doesn’t work, it doesn’t work. 

@Rodney Phillips it depends on your goals and your market. Turnkey will obviously be more expensive. BRRRR is a good way to grow your portfolio.

If you are buying properties turnkey, make sure they can rent for at least 1.5-2% of the purchase price.  In my market you can’t buy a turnkey for less than 190-225k.  But, rents in these neighborhoods don't really surpass 1500.  A turnkey in my area isn’t worth it.  Value adds in Philly are way more realistic.  If you can acquire a property for 190k and rent it for at least 2850, then go for it!   

@William Pratt  with any type of rental, you need to have a good system in place to be successful.  Vacation rentals could be a lot harder to handle, especially out of state.  

I know a guy who focuses solely on vacation rentals.  His most lucrative property clears 150k a year.  It is most definitely do-able.  You just need to have the right system in place, a good team, and make sure your due diligence is on point!

I hope this helps.  Good luck!