All Forum Posts by: Chris Davidson

@Margo Pierson being around bases is a strategy a few people I know used, but they bought as they were moved there. I would definitely encourage checking out different markets if you are going to do out of state. I would recommend David Greene's book long distance real estate investing. It really helps outline all the systems needed to work well and not result in a headache.

Another option would be STR for a vacation home. They have strong returns but not as consistent. Just have to stay a minimum of like 14 days a year to get it qualified for a lower downpayment loan.

Best of luck!

@Margo Pierson, the SMF market seems to be hot in a lot of places. As far as getting the numbers to work, what are you trying to get to work? Cash on cash return can be harder with listed properties in more saturated markets. Cashflow is really dependant on how you finance, sometimes going 25% down may make a deal that didn't look possible work out. 

My personal thoughts are if you are investing out of town (more than an afternoon drive) then the distance doesn't matter as much as the resources you will have there to manage your assets and the market that works for your style.

When I started out I was so worried about the numbers in year 1 I passed up on deals that were good looking for that absolute great deal. That being said I am ultra-conservative in my numbers. As long as you don't do eraser math to make the deal work sometimes in seller's market it takes looking past year 1 or lower LTV rates to get deals to cashflow as needed.

@Matt Slease how far are you away from closing? I think a good time for it is the final walk-through before closing or right after closing. I am not positive on the legality of it, but don't see any issue with a friendly conversation in a pre-close walkthrough plus will let you know any deferred maintenance items the tenant has been requesting be fixed.

@Tariq Hakeem Interesting charts! Thanks for posting!

I am surprised to see SD so hot, as haven't heard anything on it yet. 

@Riley Distad, not to sound cliche' but for buy and hold the best time was 20 years ago and the second-best time is today. I believe Boise is a great market for long-term wealth growth.

@Andrew Mellencamp when you do make it back out this way let me know and we can grab a beer!

@Bradley Payne I would just look at getting the property personally. Get good insurance. Form an LLC, lease the property to the LLC under a master lease, and allow the LLC to manage and lease to tenants.

Granted I am not a lawyer or know your area. So this may not help in your area. So definitely talk to some landlords, accountants, or lawyers to get a better idea for your area. But you are correct on terms for business loans do cost more.

Hope that helps!

@Account Closed Value add-MF. Is a MultiFamily deal where you can add value to the property. It can be through management, repairs updates, and a whole list of possibilities.

@Macias Jonathan thanks for the info will have to keep an eye on that as things settle out to see if it comes back.

@Macias Jonathan So they ended the program last year? Was it like the FHA 203k loan program? Learning something every day