All Forum Posts by: Michael Slockers

@Michael Bennett If you do the math you are still making a decent cash return! Good job! Section 8 is great b/c of the monthly direct deposit (hassle-free) but I have to say some of the inspections can get a little annoying... 

Great job!

@Michael Bennett Where did you end up on this? Success? Learnings?

As soon as I clicked "Post Reply" I realized I forgot two important words of advice:

1. If you want to get an education, I think this purchase will help you in that greatly.
2. You will not be getting rich off these houses. For the first year, save all "cash flow" in a dedicated account and ensure you keep it there for your emergency fund. I repeat: DO NOT PAY YOURSELF or spend a dime of your cash flow! You are very likely to need it later when things break or tenants move out!

@Michael Bennett Wow, welcome to the fun of real estate investing! 

You have some great feedback from the others on this post, so I'd echo what they've said. 

I would also reinforce that the due diligence is also on the properties you are purchasing. It wouldn't be a bad idea to get a second opinion, either from a GC you trust, or from a home inspector. 

Regarding the C/D areas, I've bought several in North Tulsa and sometimes I've hated them, but mostly I've loved them. I would suggest getting a property manager after you've had some experience yourself. Turning these over to a good property manager has helped me place better tenants. I am personally a fan of the North Tulsa rental market. I screen tenants there just as I would in an A+ market. The cash flow is difficult to beat and yes, it comes with headaches, but in the end I believe has been worth it for us. Keep an eye on your houses, get in there and replace filters every couple months so you can see the inside of the house, etc. 

As a way to mitigate risk, why not just buy ONE house from your mentor and then if that goes well, purchase another in a year? 

Some surprises I've had in this area:

• Sheriff kicked door down in one house b/c they had a warrant from a previous tenant
• Found a gun in one house (ended up being a BB gun but looked like a 357 revolver)
• Had tenants leave the house, left all their stuff, and never heard from them again, after living there for only a few months
• Had a water leak in a ceiling that flooded my garage and damaged ceiling in dining area
• On the positive side, have provide safe, affordable, clean housing for some great people. In one case I've helped a family purchase their first home ever, as they are paying a note off with me over the course of 10 years. That's very rewarding. 

Good luck to you Michael!

@Hilary Stalder We have done quite a few foundation houses. It's just another line item in the project. Keep in mind most foundation repairs at least here in Oklahoma come with a 10 year warranty (on slab and pinning), transferable to the buyer. My best advice to you: talk to your Realtor. They will know best whether foundation repairs on the disclosures will scare off 10% of buyers or 90% of buyers!

@Jim Pellerin you nailed it!

I think you guys are way too quick to squash this idea. Just because it is not how you have invested, means it cannot be done? My response to the original question from @Michael Newman is this: investing with money in hand is easier. But if you are willing to hustle harder to find a great deal, you can invest with little to no money down. I'm closing one next week with no money down. No money down! Zero! So don't give up too fast. I will say it is a lot easier to go save 10-15k to plop down on listed property if you can get traditional financing. Best of luck!

@Samuel Kelly not sure exactly what you mean by investors discount. Can you elaborate? If you are looking for discounted properties you need to determine how you can help solve people's problems. Nobody gives away equity unless they are getting served or having a problem solved. Another option is to go with local Wholesalers. This works if you are experienced and have quick money available as opposed to bank financing.

@Melanie Hartmann go for it! This is awesome!

@Robb Rollinger congrats! Cash burning a hole in your pocket! Good problem to have of course! Let us know if you need any Tulsa help!