All Forum Posts by: Ethan Beard

Hi Clay,

I am a new mult-family home investor in the Chattanooga area as well. I recently completed my first deal back in December and renovated the property myself. If you have any questions, I have plenty of lessons on what and what-not to do as a first time investor fresh in my head! I would enjoy connecting and sharing any experience that may be of use to you.

Best of luck and God speed!

Hello All,

I am new to the Real Estate game with only a single duplex under my belt. Until I am ready to pursue my next property I continually practice property analysis on the MLS listings. Majority of the properties that I analyze perform at a negative ROI, yet I continue to see these properties sell. My question is are folks regularly buying these poorly performing (most likely) properties in hopes that it works? Or is there a method of acquiring a property that I have not heard of? I am familiar with Traditional property acquisition and currently schooling up on the BRRRR method. However, neither of these methods would work for the mostly turn-key properties that are selling and reach above 8% ROI.

Any insight as to what is occurring would be greatly appreciated!

Although my experience is limited to a single multi family home property, these were the 3 factors I primarily based my decision to pursue a property on:

1. Return on Investment: The primary intent on purchasing my first rental property was to house hack and break even with a monthly mortgage payment. I treated each potential property as if it was going to be a future rental. This was to ensure the performance of the property on a long term basis as well. The yearly return on investment had to exceed 8% at a minimum.
2. 
   Location: With the guidance of a seasoned mentor, I sought properties that I would want to purchase in the future as well. Not just as my first investment. My long term goal as an investor/landlord is to choose areas that attract the least troublesome tenants.
3. Risk Analysis. For each property analyzed I ran a risk analysis on the most likely problems as well. The top three problems I forecasted were vacancy, hidden maintenance issues, and property damage. Each of the three can be mitigated with proper planning. I.E. insurance, renovations, or monthly income.

I am seeking guidance on building a quadruplex, or multifamily home in the Greenville, NC area. I am new to real estate investing and this would be my first venture. I plan to "house hack" and live in one of the units and manage the others to reduce monthly expenses.