All Forum Posts by: Will G.

I am gonna go with do it yourself!

All the info and help you need is right here, without taking half your profits!

Just be conservative with your estimates and keep asking folks here what your unsure of.

I think this would be dictated by your market, lots of family's and good schools, i would do all the 3/2's possible to reduce turnover. Mostly oil path workers, then you need more 1/1's etc. Interview potential property managers for more market intel

more math is necessary here. $180k of net requires you to find a $2million property at a 9% cap rate, which is mobile home park territory, not largish multifamily. Then you have to subtract debt service of $93k on your $500k down model. That leaves you with $87k cash flow. The reality is you will be lucky to find a 7% cap which will cash flow $47k on a $2m purchase(after debt service).

The other thing is you can only borrow up to about your net worth to purchase a multi, not sure on mobile home park though

Most people wont be happy simply "not working". Humans need purpose, a sense of community and need to feel needed, as well as "giving back". Psychologically speaking, we are healthier when we make these things goals, instead of monetary benchmarks

I commend you for taking on an investor, facilitator, role. Of course that means tons of offers that wont be accepted, and will require more patience than a "regular" realtor.

To add value to your offerings i might suggest knowing your market as well as possible,

Understand what it really costs to rehab stuff, and what arv's should be along with what stuff will rent for.

Once you are comfortable with identifying a decent "deal" you will stand far above the rest and add tremendous value to your network of investors by saving them tons of time in finding worthy prospects.

On the deal breaker question, please don't b.s. me! Just the facts, good and bad.

Most realtors just "sell" regardless of what is good for the client, and most pick up on that quickly, especially investors. So don't gloss over the challanges of a potential investment

hope your step mom lives for a while longer cause multi fam is ridiculous right now, record low cap rates, and many eagerly overpaying for the next round of future defaults.

Any hiccup in the market, decline in rents etc and many will be squeezed,

Buy now at 5% cap and 5% interest rate and sell or refinance 10 years from now at a 7% cap rate and much higher interest rate environment and see if any of your cash flow survives

i recently saw a listing for a huge batch of sfh's, in tennessee for $5 mil in case your interested.

50% expenses may be a little high, but if self managing it is nice to have something in expenses for your time. Saw a great post here about an investor who bought a new home and had a single tenant for 15 years. At tenant move out he had some $26k of expenses redoing the house, which effectively wiped out all cash flow. His only benefit was from equity paydown(paying the mortgage) his advice was count on 50%, obviously heavily influenced by tenant turnover.

On current strategy, the world is yield starved with low rates of return on everything, so many are accepting formally unthinkable returns as "better than money in the bank"

I would be firmly in the "time to re-strategize" camp, and think the artificially low interest rates will cause a lot of malinvestment as financial engineering usually does.

7.5% should be doable with multifamily or syndication

Although there seems to be no end to those who will overpay, perhaps not understanding actual costs or investing for other reasons(besides cashflow) on the commercial side. Hence the record low cap rates! 

Sorry 40$ per sf

Hiring everything out or diy?, removing old floors or bare concrete? 4$ a square should easily do the job, but what about the value of the home after flood maps change? 

What about behind the cabinets? And tubs? Accessible from the other side?