All Forum Posts by: Emeka Attoh

First of all, I am proud of you for taking care of the roof and fixing up the property for the tenant. So many people would be too cheap to do that. You, on the other hand, gave someone a nice home to rent. And it is great that you learned so much during the process. Great job! You will do even better on the next one with everything you learned here.

As someone told me, take care of the people and provide value. The money will follow.

1 Vote

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $85,000
Cash invested: $40,041

I got this OOS as my first investment property. My repairs for this property was about 16k because I opted to change the roof thinking long term. For the time I’ve held this property I’ve had to make some repairs to it. It is currently rented out to a section 8 tenant.

What made you interested in investing in this type of deal?

I prefer SFH to MFH

How did you find this deal and how did you negotiate it?

I found this deal on Zillow

How did you finance this deal?

20% down conventional financing

How did you add value to the deal?

I fixed up the property to make it solid for the tenant

Lessons learned? Challenges?

I was excited to get my first property so there were some things I ignored or did not know about. Inspection reports are very important and should always be included as part of acquisition cost. It will save you money in the future.
Overall I am happy because I took action. Even though it is not the best deal, I intend to hold for a long time.

1 Vote

No amount of advice can help you.
If you have the funds to buy it, buy it and experience what it feels like. The worst that can happen is you lose some money over the years(might not happen).

Fear and indecision never makes money.

0 Votes

Birmingham, Alabama

Quote from @John Mocker:

Tyler

Once you have a potential contractor, have them send you an Insurance certificate. The certificate should show:

1. General Liability

2. Workers comp.

3. Business Auto (if they do not own the vehicle it should show hired & non-owned auto coverage)

I would suggest drafting a contract with an attorney for use on your projects. Some of the things your attorney may suggest are:

- requiring the contractor to require the same coverage of any sub that they bring onto the property

- strong hold harmless clause in your favor

discuss it also with an insurance agent experienced with construction. Discuss:

-what limits to require

- additional insured status

- 30 day notice of cancellation

- waiver if subrogation

- primary and non-contributory

good luck with the project

This is golden

0 Votes

Indianapolis, Indiana

Quote from @Elias Osborne:

Quote from @Damian Callaghan:

I'm new to investment but spending a lot of time on market and deal analysis. I am ready to buy but so far - even in markets where you can still pick a home up in an appreciating market for $250K - I am struggling to see how they cashflow with 25% investor down payment and interest rates up there near 7%. It frustrating - Im ready to go but certain I am missing something. I use a 0.86% (rather than 1) for quick deal analysis but do detailed analysis as well. On a $250k house you are looking at $62,500K down (which isn't cheap) - then somewhere around $1500 a month for repayment and taxes (doesn't take in to account mgmt, vacancy, capital) - and these markets I am looking at only getting $14-1600 a month in rent..

What am I missing? Help from this network welcomed!!

Note - I wanted to invest locally but even worse on Gulf Coast so been looking at NC, Jacksonville amongst other places

Hey Damian, I think there are a couple of strategies that can be used, especially if you have 25% to put down. I'm located in Columbus, Ohio. Our market is appreciating and has cash flow. But your first step should be to look at off market deals. This can save massive amounts of capital without having to deal with the MLS and over zealous listing prices. From there you can leverage your working capital with hard money lenders rather than conventional lending. With the tech boom going on in the city, the rental market has been on the rise. This can help you choose what your investing strategy could be, BRRR would be great in order to acquire multiple properties in and be cautious in spending.

This is an awesome idea. But we always need to remember that when starting out, putting in the structure to get off market deals is not attainable by many newbies. I suggest looking hard at the MLS to get some deals under your belt. The deal might not be the best but it shows commitment and desire to become a real estate investor. Once you understand the market, you can invest in getting off market deals. Off market deals don't come out of thin air. There's a lot of work in getting it.

1 Vote

Saint Petersburg, Florida

Quote from @Clarissa Clark:

Evernest

Please, can you share more about them?

0 Votes

Birmingham, Alabama

Quote from @Eliott Elias:

Look into Killeen Texas.

Why Killeen?

Just curious.

0 Votes

Your best option would be to look at OOS investments. Even with the high interest rate, I bought a tenant occupied property @ 7% that cashflows 100+ as-is. I'm going to be bumping up the rent once I make some renovation. It should cash flow about 250 - 300. I invest in Bhm, AL.

0 Votes

Saint Petersburg, Florida

Is the property still available? If it's let me know.

0 Votes

Birmingham, Alabama

All Forum Posts by: Emeka Attoh

Emeka Attoh has started 3 posts and replied 23 times.

Post: My second rental

Post: My First property - Buying OOS

Post: My First property - Buying OOS

Post: New investor deal Alabama too good to be true?

Post: Tips for finding good contractor referrals

Post: How to find Cash flowing properties - What am I missing?

Post: Birmingham Management (C and D Class)

Post: Favorite markets to invest in Georgia or Alabama?

Post: How to find Cash flowing properties - What am I missing?

Post: Trying to sell rental property with tenant