All Forum Posts by: Casey Miles

Hi Bob,

Judging by your post count and direct comments on cap rates I'm assuming your question is more of a "defend your position" question than a genuine question?

Obviously there are a ton of ways to interpret/determine value such as location, vacancy rates, capex, etc. etc. I do believe analyzing cap rates is a good place to start learning if a "deal" is actually a deal. Assuming you have identical properties with identical vacancies in identical neighborhoods the one with the higher cap rate is the better deal. If you have the same situation with cap rates but one property currently has a 20% vacancy I'd say the property with the vacancy is the better deal because of the upside potential in rents. Assuming your looking at actual cap rates not pro forma.

When I started investing in Phoenix I was seeing 9-10% cap rates and would say I was getting better "deals" back then. Now those same properties are at 6.5-7.5% cap rates and I would say the deals aren't as good now. 

A cap rate isn't the end all be all in determining value but it's the best place to start for a new investor. I think of it as the "sniff test" in the analyzing process.

Hi Jeremy,

I'd say that's an aggressive plan but it could be done. I'll say it'll be pretty hard to do in the Phoenix market from a cash on cash perspective. Things have gotten pricey here and cash flow is hard to come by. I'd start learning how to annalize properties (CAP rates/cash on cash). This way when something comes along you'll know if it's a deal or not. I'd also start focusing on what kind and neighborhood type you want to invest in (what type of landlord are you going to be).

Let me know if you have any specific questions.

Take care,

Casey 

Hi Jane,

I have two SF homes and a fourplex all on septic (separate properties). One of the homes I've had for 10 years with no issues, one for 6 years with no issues and the fourplex for 4ish years with no issues.

Michael has some great points regarding landscaping, etc.

Best of luck,

Casey 

Hi Preston,

Do it if you want to but it's not a necessity at this point. I would however have a decent umbrella insurance policy regardless if you have an LLC or not.

Take care,

Casey 

Hi Joe,

I'd probably look at paying the mortgage off and getting a HELOC to replace it. No sense in paying interest, even 5%, on $70k that just sitting there not currently earning you money. With the HELOC you'll have access to it but won't pay for it until you use it.

Just a thought.

Take care,

Casey 

Thanks for the write up Julie. I too am considering KC if I decide to venture out of my backyard. I realize within a TK operation there are mutiple ways for them to make $ from acquisition and improvements to placement and management. My question is did all three companies have similar fees on the management end of things?

Thanks in advance,

Good on you Lanny! I love the feeling I get when I do right by my tenants AND they truly appreciate it. It makes up for the times I do what feels right and I get burned. Sometimes it's really hard not to get soured in this business. I really like reading stories like this!

Thanks,

Casey 

Hi Drew,

Assuming there isn't any other membership fees, etc it appears to be a great deal. Am I understanding this correctly? The mentorship program not only finds/funnels deals to you but they finance 90% of the purchase price as well with no fees? Leaving your startup money purely for rehab and 10% of the purchase price of said property?

It's probably just me, and I understand any mentorship will have a "cost" such as labor, time, and/or $, but when a mentorship is as structured as this one sounds it appears more like their primary business than a mentoring program. Not to say it's bad it's just not how I define mentorship. How do they select those they mentor?

Hi Paul and welcome to BP. How did you locate your flip? MLS, direct mail, a wholesaler?

I'm looking to get my feet wet in flips and I'm curious as to what works. I've been a buy/hold investor for about 6 years and I'd like to try something new.

Thanks,

Casey 

I'm guessing since it was an HOA auction that it's a probably a tax lien, and if it is, it has the highest priority.

You won't be able to negotiate down a tax lien and it runs with the property.