All Forum Posts by: Dwayne McNab

@Harvey Corsino 1% of something is better than 100% of nothing. I don’t know anything about your initial investments. What I would suggests is that on your next investment make sure that you do you due diligence and exercise caution. So many people get burnt in the game due to lock of knowledge and preparation.

For starters, I would try to use the 1% rule when buying the next rental property. In addition to making sure that the property can be rented for at least 1% of the purchase price, you want to make sure that other expenses are taken into consideration. Capex, repair etc.

You also, want to ensure that you set a number for your monthly cash flow per property. Start low, maybe $200 and gradually increase as you get better at investing.

Run the numbers, this app has a tool that can help with that or you can use an excel sheet. If the numbers don’t turn out as expected then move on to the next deal. Also, you want to make sure that you have enough reserves. This is very important, not only for the banks but also to help during turnovers, etc.

You stated that you are investing out of state so I assume that you are working with a PM. Use your PM to find the next good area. They should know the local market much better than you do.

Finally, I don’t think $26.00 per month is a good return. Personally, I wouldn’t buy a property for a long term hold if it only cash flowed $26.00 per month. That return just wouldn’t worth the headache.

I am looking for a great contractor to work on my unfinished basement.  Adding a bedroom and bathroom.  15K budget on a 800sqft space. 

I would say that your best bet would be to analyze the rental cost of  a few areas and also pay close attention to growth of population and workforce as well as schools. Each city have different price range and different areas within each cities has different growth potential. 

I am a out of town investor myself and i rely on the expertise of a property management company to steer me in the right direction. As they rent properties for a living, they usually can tell you what areas are good areas to invest.  That being said, I rely on my research to limit the possible state/cities to invest in.  For 50K, you are probably better suited at a fixer upper in a decent area.  

Hope this helps!