All Forum Posts by: Caleb L.

Intelligent questions.

I like 12%+ for a few reasons:

1) It's easier to find in the market compared to 30%. You won't be able to get 30% or 60% COC return in the market, probably ever! 30% COC is not impossible, but very very very rare to come across.

2) 12%+ is a good return for me. I honestly try to shoot for 15%, but I'll settle for 12%. It depends on how much you want your money to grow each year, and 15% a year is suitable for me.

Try looking at surrounding cities. Ask your agent what are some of the cities people are moving to, look at neighborhoodscout.com, citydata.com, etc. You should find a pretty good city if you work hard to find it.

Hope this helps!

(Sorry, double posted) 

Intelligent questions.

I like 12%+ for a few reasons:

1) It's easier to find in the market compared to 30%. You won't be able to get 30% or 60% COC return in the market, probably ever! 30% COC is not impossible, but very very very rare to come across.

2) 12%+ is a good return for me. I honestly try to shoot for 15%, but I'll settle for 12%. It depends on how much you want your money to grow each year, and 15% a year is suitable for me.

Try looking at surrounding cities. Ask your agent what are some of the cities people are moving to, look at neighborhoodscout.com, citydata.com, etc. You should find a pretty good city if you work hard to find it.

Hope this helps! 

I would never even consider a deal under 12% COC return. I look for 12%+ COC return for my deals, even if their hard to find.

If you can't find any leads with enough COC return for you, than you can do two things:

1) Find another neighborhood. You current location might be to inflated right now. Read "Long-Distance Real Estate Investing" by @David Greene.

2) Like @Brandon Turner always says: "Every property has a price that makes it a good deal". You can always try to make a low ball offer and see what happens.

Good luck!

I like Cozy, but TC has a few more, helpful tools like, accounting, dashboard, team, etc. It allows you to do more, and it's worth the charge.

Cozy's good to start out, but when you get to more units, I suggest Tenant Cloud because of the extra tools. Appfolio and Buildium is even better for larger companies with more units. I like both, but I think Tenant Cloud is a little bit better. 

I use Cozy, too. But, I will probably switch to Tenant Cloud. It's free to start and has a lot more tools, and pretty easy to manage. If I get a property manager, they'll probably use something like Appfolio or Buildium, I prefer Appfolio.

Nice explanation @Poem Turner! Better than what I could have said about it. 

The ARV is rather high if your going to put in $0 for repair? You have not accounted for vacancy, and based on where it's located, you might want to raise your repairs from 5% to 6%-7% depending on location.

I recommend running it again, including vacancy. An $85,000 house in this market economy must need some repairs.

You also put 0 for income growth, which means the expenses are going to eventually become higher than the income, which is bad!

Hi @Chris Rose!

Great intelligent question! Don't worry, I'm still learning too, we all are!

In terms of your questions, I recommend networking with other investors. In almost every network meeting there's going to be a hard or private money lender somewhere, or someone in that group knows a lender.

Flipping is a great way to get started! And establishing TRUST with the hard money lenders is very important!

I really can't say much because I'm not a flipper or know a lot of hard money or private money lenders, sorry I'm going the rout of wholesaling to generate money for rentals.

Good luck!

How it usually works is the PM takes a percentage of whatever the GROSS RENT is. Usually it's in a range of 6%-10% of gross rents each month. For example: 

Rent - $950.

Extra Income (Pets) - $50

Total Gross Income - $1000.

8% Management Fee - $80

The PM take whatever the total gross rent is each month, no matter where or from what it comes from.

If the tenant breaks the lease, it still works the same. Whatever % your giving your PM company, that's there fee, period. Some PM's will give you a full refund of the fees you paid them if the tenant breaks the lease early, I know a few PM's in Texas the do that.

At the end of the day, it's whatever % the PM is taking each month from gross rent is what your going to pay them. Whether it's a security deposit or something else.

Some PM charge a monthly fee and not a % of gross rent. One Texas PM companies charges $99/mo per unit for full service property management. There's another good PM in Texas that starts at $78/mo for full PM services and goes up depending on the price.

Do you currently have a PM or are you just wondering how it works when you get one? Either one is fine!

Thanks a lot for the comment Shawn! I don't currently have a blog on BP, but I might some day. Every once in a while I'll post something like that.