All Forum Posts by: Bob Okenwa

@Clarke Cirel

First of all I must be investing in the wrong place because 30k out here gets you unlivable land in an area with more cacti and boulders than people. I'd be lucky to get a 7000 sq ft lot rather than multiple acres. Back to the situation at hand here, I like the idea of subdividing lots and building houses on them and selling them when the time is right. As the saying goes, "buy land, they're not making it anymore". Having land in an area with a bright future is kind of like holding a real estate lottery ticket if everything bounces your way. If subdividing isn't in the forecast, you can keep the land as 1 huge lot and fix up the property on it and sell it for a profit or just subdivide the land now and focus on the half acre property. There's so many opportunities here that if done right, you'd have something very nice on your hands.

@Alex Shaughnessy

I'd assume that the investor would want 7% back on the entirety of their investment regardless of the time you borrowed it otherwise they'd see better returns on 100k in the stock market than $583 if the stock went up 7% in a month. But it'd depend on how the agreement you have with this person is structured.  Some people want a percentage of the profit and some are OK with a percentage return on the money they lend. If I gave you 100k, I'd definitely be looking for that 7k in return.

@Shawn Connors

I'd be happy to take a look at it. But people these days want what they see on TV or something close to it. Having that many types of floors and an old kitchen without reducing the price may make people uneasy to undertake a reno project. @Mike Cumbie has great ideas he listed in his post and I've follow that advice as it's very insightful. 

@Gleason Jones

Lender's typically won't lend to LLC's without a history (usually 2 years worth) of doing business. I'd always seek the advice of a CPA and attorney before engaging in such matters. But you can set up an LLC as a single member one and open a bank account on its behalf although the property would be in your name. Quit claim deeds can be called by the bank and for a rental, you might be biting off more than you can chew. An umbrella insurance policy may help mitigate risk but I'd talk to an attorney about my liability and then to a CPA about tax structure.

@Mike Ojo

I haven't acquired any rental properties yet but have studied the BRRRR method and I believe the most important number will always be the purchase price. If you're not getting the deal upfront when you buy, there won't be a good amount of equity to get the strategy off the ground. You have to be able to force a good amount of equity into the property in order to get your money out on the back end.

@Nikki Drahm

Seems like a good deal on the surface. The cash flow and CapEx should account for any major repairs should you decide to sell several years down the road. I'd be more concerned with making it rental-ready than worrying about a hypothetical flip years down the line. We can have another 2008 on our hands and flipping it might not be possible in a few years without taking a loss. Sounds like your deal is ready to cash flow now at $1500/month. I'd pull the trigger if everything checks out and your due diligence comes back clean.

@Shawn Connors

Is the seller being unreasonable in terms of list price considering the condition of the property? If the house cannot sell in a hot market, something is wrong with the home or the price or both. Maybe the seller isn't being flexible enough. Have you considered delisting and relisting at a later date? Does the house need any kind of updating?

@Jason Shamis

I rented a home before I purchased my current residence last year and they handled maintenance and rent online like you suggested. The only time the phone was needed was when the subcontractor would want to schedule the repair and when they were on their way. Some people are just old-fashioned and like talking to people about problems. I personally prefer online communication. Some people want their problem addressed immediately and don't trust someone getting back to them via email or online portal. Different strokes for different folks I suppose. Best case is to give them the option for a phone call only in the event of an emergency and refer them to the website for all other issues.

@Toby Russell

I'd suggest using the BRRRR strategy and taking the equity out of one property and using it to acquire the next, assuming you buy a property that can gain equity via forced appreciation through rehabbing it. The cash flow you'd get off of one property would probably take a long time to pay it off unless you got an amazing deal off the bat. Just my thought, but after I got one done, I'd be focusing on the next deal. Maybe get a few going then using the combined cash flow to help pay them off one at a time.

@Austin Laney

I'm not from TX, but I'd suggest meeting with a CPA and/or attorney first to make sure you have all your ducks in a row. Business tax code is extremely complicated and it'd be best to consult the pros before making such an important decision. Just my 2 cents. Here in AZ you can do it yourself for the $50 filing fee, but I still met with a CPA not that long ago and was enlightened on how much he knew vs what I thought I knew lol.