All Forum Posts by: Bryant Clark

@Tommy Daggett Agreed to an extent man. I'm thinking though there are other less risky properties at a similar price point that will serve the same purpose. Good luck with your pursuits man. Would love to hear when you get your first and what your experience was.

@Allen Williams Thanks for your insights. What was your cash flow criteria for properties in these neighborhoods?

@Darryl Matthews Thanks for your input. I had a 2nd property manager drive by who grew up in the area and recommended I not buy, though she was willing to manage it if I did. She's been in the game for a while and is very capable of managing these types of properties. While I don't let other folks make my decisions I do lean on the professionals for advice. 2 prop managers advising me to pass has to hold a little weight, and there is plenty of other opportunity there.

@Jim K. Thank you immensely for sharing your story. Your experience resonates with me cuz I think part of my hesitation in going through with this deal is thinking about the possibility of those things happening...older house needing more work, dealing with the nuisances of the neighborhood and tenants, etc. I will definitely think through all of your points. Agreed with @Dennis Wayne.

@Jim K. I'm not looking to pass my problems off to a property manager but would lean on her along with the other people on my team to help me maintain it. Isn't that the idea in all of this?

@Zachary Beach I'm inclined to agree with you. Although the owner is selling because he's getting more inventory from his parents and trying to move out of state where he has other properties. In any other case it would be an easy decision. But the seller is a childhood friend and has had success, albeit limited, with the property, so I was putting a little more consideration into because of that. Ultimately though I don't think this is a good first investment.

@Jim K. Thanks for the candid response. The dealing is one thing, but the users are a different story that will gut the house as soon as it goes vacant. Thanks a ton for your input.

@Oleksandr Ivanovskiy Thanks. While I'm not turned off from that class neighborhood yet, this particular house is a no go. Can you give me your reasons for not investing in C class? Also can you define what C class is since I labelled this as D and have seen E and F on this post as well?

@Damaso Bautista Thanks for your input. Totally agree regarding entrepreneur, however every entrepreneur assesses the risks they are willing to take and makes decisions off of their risk tolerance. This post is less about problem solving and more about defining how far I'm willing to push my risk tolerance.

@Jeremy Horton Thanks for your thoughts. I'm thinking this one will be a pass considering those conditions. If it were cash flowing more it may be worth it.

@Greg Weik Thanks for that strategy. I always like hearing different ways to turn properties around. Although "artificial" makes it sound a little shady. Is that a widely adopted practice?

@Michael Manchester Great point with the over-analyze. While I have a decent network of folks there now to help, I'm still remote and would rather a prop manager with more constant eyes on it. More cash flow would make the decision easier but thinking I'm going to pass on it. 

@Ola Dantis RoS is good stuff. Thanks for that. I think this one particularly would have a higher RoS than most considering it's my first one.

@Pat L. Thanks for the breakdown. I'll still be looking in the area, just not this particular house so would love to ping you with more questions soon if you don't mind.

@Matt M. That's $240 with a PM managing it. And I'm starting to realize that $240 is not enough for the area/house. I think I'm a little less strict on house to live vs invest, but I won't call you crazy yet!

@Pat L. Thanks for the advice Pat. That seems like the smarter way to go in a situation like this. How did you find interested potential owner tenants? Did you advertise it as a "rent to own" from the start?

@Brian Mackey thanks. I'll put more thought into that. I'm working with a couple of agents here but like you said competition is fierce. Cash flow is hard to come buy on the deals I've come across so far. Still on the hunt though.

@Dennis Wayne Sorry, used that little squiggly line to mean "about $240" not negative.

@Damaso Bautista That's fair. Thanks for your comment. I know this area well enough to know that the kinds of problems that could come with this property may not be the kind I want when starting out. In my original post I mentioned one property manager passed on managing it. I had a 2nd one (who grew up in the same neighborhood) drive by today and she said she'd manage it, but advised me not to buy. Her wisdom was in an area like that you want to buy the worst house on the block so it can be rehabbed to match some of the better ones (I'd love to hear thoughts on that). This house I'm looking at is already the best house on the block. And she also told me there were dealers hustling on the corner of the same block. My hesitation isn't about solving problems so much as filtering out some of the problems I can see now that may end up costing me money. This house in a C neighborhood is an easier decision. Considering the extra risk posed by the area I was curious to know how others would approach it.

@Dennis Wayne We haven't settled on final numbers yet for the seller financing but shooting for cash flow of ~$240 (after vacancy, capex, etc). Rent is $800/mo and CoCR is 26%. He'll sell for $40k with $10k down.