All Forum Posts by: Doug Harmon

I’m sure if a guy worked hard enough finding stuff that’s not in the MLS he would eventually find a 2% deal but they are few and far between. What it tells me is that now is not the time to buy and you should consider selling marginal properties and focus in building your cash and systems for the next housing downturn where you’ll be able to find 2% properties. At 1% you’re really not making much once you value your time and long term maintenance on a home. If you buy at 1% thinking appreciation will save you that’s also a risky bet 10 years into a housing recovery. I have stuff for sale and have not seen an appealing deal in a couple of years.

Land consumes capital you could use elsewhere and you have to pay taxes on it yearly while it generates no rental income.  I'll sell you mine in Cherokee LOL

no permit

This is an area in a transition down.  The school grades are likely based off historical data.  I don't see home values increasing there anytime soon.  Like any area though, I'm sure there are deals to be had.

Yeah I hear you but I've seen new homes that require more than 500 a year in maintenance but that's not my biggest concern. If you folllow BP, you'll see most folks are targeting stuff that pays 2% per month of the purchase price. That would mean this would need to rent for 4000 a month to make it a no brainer. That said there is good money lower than that but your rent is not even 1% of the purchase price which makes this a poor deal on the surface. As I dig down, your maintenance number is low in my view and you have very little margin on this deal when you look at your cash flow. Any repair, higher taxes, or longer vacancy and you're cash flow negative. Your ROI is only showing 5% even with your aggressive expense numbers. Heck you can make that on a corporate bond and not have to hassle with renters. To make rentals worth your time, your returns need to be much better. I would not consider this deal but that's me. Just buying a couple of for rent signs and cleaning the carpets when you turn tenets will run you 300 bucks. A single hvac service call is a couple hundred bucks. Heck you can't hardly pay for termite service for 500/yr. I would pass.

I'm not a big fan of this deal.  Paying 200k for something that rents for 1500/month is not even a 1% deal.  I also think 500/yr budgeted for repairs is not sufficient.  I'd look for better deals unless I'm not following your numbers here.

I'm fairly green but I'd be happy to look if you don't find a real pro :)

Congrats!  I'm in the Canton area and looking at properties around me and in your neck of the woods.  I own 2 today but looking to add.  Love to get plugged into tax sales in the area and always open to share what little i know :)

Same area, same question.  Love to see where this goes but I don't have a good one either.

On the HVAC one, I'm over towards milton/canton and I use a guy named Matt Brown.  Very good and honest.   Plumbing is easy for most repairs and I do these myself.  Paint is hit or miss.  I've had guys I liked only to call them out a few years later and get a crazy high quote.  Painters have been hard to find in my area.  On the flooring,  I love the manufactured wood floors and replace carpet with them any chance I get.  Another DIY project for me as the stuff is easy to lay and holds up well.