All Forum Posts by: Josh C.

Could be bad property management. Could also be bad properties. Only bad tenants live in bad neighborhoods no matter how nice the house. Maybe post your addresses and get feedback from the group.

Most of the local banks and credit unions want you to be a local resident unfortunately. All the ones I know require that.

Good luck, but likely have to go with a big guy.

@Nathan Gesner

100% agree. Raise rent to 90% of market and he’ll likely stay. If not 60 day notice is very fair. This is exactly what we do, and people will accept 100% increases because it’s cheaper than anywhere else and it’s their home.

Still you’ll need to fix any plumbing, electrical, door etc type issues which likely are in bad shape.

This is also a win for you as a turnover could easily be 10-20k after a 24 year tenant.

I’m a PM in Indianapolis. It’s 30 days, however we usually provide 45 because 30 days can be tight for them then to figure it all out.

@Charlie Cole

Love the energy and good for you for starting. But asking experienced people to set up an interview with you is unlikely to bear fruit. I mean why would they?

If you are great at Calc or some subject in school and a rando freshman sent a message to school asking for free tutors to snap them so they could receive free guidance would you think lots of people would reach out? (I think these are words the kids are using this days :) )

Try to offer some value you have to someone for them to provide value for you.

However, tons of great forums posts in this website and lots of good videos on YouTube if you can’t offer anything. If you look hard enough all your questions should be answered.

I personally started by buying a cheap crappy duplex. Fixed it up myself with a buddy doing all the work ourselves. Refi and repeat that same process for a few years til we had actual money.

Good luck

@Mike H.

I think it’s funny you compare buying rentals in 2010 to today saying it’s apples to apples. It’s the absolute opposite. When a market goes to the floor like in 2010 people were scared it would continue to drop. Now the market went to the moon people are unsure if it’s the top or not. The huge difference was cash flow. Almost everything cash flowed in 2010. It’s tougher now. I personally wouldn’t sign a 850k mortgage after putting 100k down to make 7k if I have no problems. Too much liability for 7k. I would guess when you bought your 83 rentals worth 10 million you were NOT buying them with a 7% cash on cash return. Smaller investors aren’t getting out of bed for that. Possibly some large funds would buy that?

Typically when someone highlights all the other benefits besides cash flow my spidey sense tingles.

Now if you can build them for 650 then you should do that all day.

Holly molly. That’s crazy cash flow for a small investment. Got to be a lot of work, but good for you.

@Michael Mastantuono

Fivver would have someone to do virtual staging. Just google that for Indy and there are a bunch of options. If you DM me I can recommend someone.

That’s a weird place for sure. You can check your building department, but sometimes you don’t need a permit for non load bearing walls. But you might need one if you are creating sleeping rooms (but your post says it’s already 2 bedrooms so you really aren’t creating anything if it’s shown by the city that’s way already.

Good luck!

As an RE professional cost segregation is extremely nice benefit for the cost and for my situation better than 1031s.

But I can see if you can’t take the paper losses it being worth it. Most “cheaper” and “regular” rental places though don’t generate enough income to worry about taxes anyway so it’s a non issue for most people. I’ve only done it on medium sized apartments. The only reason we do a cost segregation is during the same year we sold something and are trying to off set that tax liability.