All Forum Posts by: Farakh Zaman

 So hard to feel like it will work, but thank you for the encouragement.  Will keep pressing on.

FZ

 Thanks @David Vernich, I will check that one out.

FZ

 Thanks @Carolyn, I have been looking south of there, but will look in those areas as well.

FZ

Because I am active duty and only in HI for another 12 months. I can't work on a flip with the amount I travel and literally nothing I have run in HI has come out with more than a -8% CoC ROI

 Thank you for the empathy and capturing my frustration...that is exactly what I am feeling.  As you stated, I'm going to look at other markets to see how that works out.

Thanks for all of the input everyone.  Just a couple other data points for you to help complete the picture of my situation.  

- For those that asked why not just stick w/ Hawaii; it is because I'm active duty and will be moving in the next 12 months or so.  Due to travel/ops tempo, I don't have time to manage a flip here on island which is why we decided the buy and hold strategy. 

- The reason we are focusing on the front range of CO is because we have a property there already, our family is there and we know people on the ground there to help us look at things when we need someone to go on an inspection or drive by at the very least.  We also will most likely retire there after 8 more years of active duty.  Kansas City was the same reason; we have family and friends there.  Everything we found in KC was either killed by taxes or needed extreme rehab.  

- For those asking what my expectations have been, I have been looking for the following:

8-12%CoC ROI (I started out at 12% and have come to realize that is not possible in CO)

$100/door for multi-families

The rationale for these numbers was based on some of the bigger pockets books and webinars.  

I have used the bigger pockets calculator exclusively to evaluate deals. I assume 3-5% vacancies, 4-5% repairs, 5-10% CAPEX depending on condition, 10% PM. I get insurance quotes form USAA, have a mortgage broker who gives me the current rates (4.875-5%), look up the taxes on the county site (except FL because that county's website is atrocious so my RE agent gives me the data).

- The deals I that have fallen through, I actually go back and run the numbers using the BP calc with the purchase price and it literally is negative every time, which is why I am frustrated.  I feel like either the calculator I'm using is so conservative that I'm missing deals, or I'm dealing with absolute absurdity and in that case there is no reasonable way to win against that.

Again, I appreciate everyones inputs.  I will continue to trudge on because CO is where we really want to invest in, but it may come down to just sitting and waiting until we are actually in a place where it doesn't take 8 hours and $1500 a person to fly in for a weekend.  

 @Travis Sperr, Thanks for the input.  I have not looked at wholesales however had a mail campaign in Denver going.

FZ

@Ralph R. I didn't think you could do that? Pay for a house and then get a mortgage for it. I know you can get a loan on the equity. But how do you get the money back out?

@Jill F. Thanks for that feedback, that's what I am looking for.  Being away from the mainland, it is difficult to figure out what markets work.  I would have never thought of Akron, but will look now that you have told me.  Any other areas you would suggest?

@Zach Quick, the rents here, while high, do not cover a mortgage usually.  Asking price for a normal house here is about 700K+.  With taxes and other expenses rolled in it doesn't make a sound investment.  

MF are over $1.25M for a fixer upper and being active military, it is hard to commit to a BRRR like that.