All Forum Posts by: Gabriel Amedee

Personally I've done this and I would try a slightly different approach. I got the idea from a member on here, Cody L., to already have an idea of what my price will be before I get connected on the line and it's shown much more success. For one you don't waste each other's time. An investor is more willing to get off their butt if they know it's worth their while. If your price is attractive to them they'll assist you better, if it isn't then you won't have to waste your time seeing a property to get your offer rejected. I'd also leave out the agent part. The owner is who typically pays for the realtor and I'm sure an owner won't want to pay a penny or raise the price if they have to cut a check for a realtor. You might be able to find a realtor who will do it for free if you promise them a listing at the least, if not a bonus at 3.5/4% on their side. The whole inspection period might turn them away as well. Try to keep it short. Down here it's pretty common to purchase a property with zero day inspection. A good GC should be able to do a lot of your inspection and if you want to feel better you can hire an inspector for a couple hundred bucks to tell you all the problems. I wouldn't rely on the landlord adjusting the price for any of those problems as the next buyer will not be aware of these problems and they may feel you are pulling their leg from a distance. Lastly the whole deed is handled through a title company so get title insurance and you shouldn't have much to be worried about it. I would do some more research if I were you though based on the questions you are asking. If anything else feel free to reach out ! Happy investing!

@William Frantz we need more info man. 

What's asking price? 

What are the two units renting for? 

If they're vacant have you took some time to check the rental rates? 

A narrative is not enough to make a good investment lol. I do feel the whole metering is a bit messy though.

@Monte Blunk Being from Miami, these numbers don't look too shabby but it really comes down to knowing your area and knowing that this is the deal of the month, year or however often you purchase a deal. I'd wait till someone who in invests in SLC chimes in. 

Just to play Devil's Advocate, are you confident in vacancy being that low? Capex?

Is your rent estimate comparing to SFH 4/2's or other MFR?

I will say that the fact that hiring a PM would murder your numbers does make me a bit uncomfortable. I always like to plug those in just to have a safety net. I know some people feel strong about never needing a PM but I also know people who used to feel that way as well. Just my $0.02

@Allan Smith what would you consider a landlord more likely to sell? 

My MLS has a program called Realtors Property Resource (RPR) that shows mortgages taken out in each subject property I search. It also shows if they have any lis pendens recorded so I have an idea if the landlord has a mortgage and if they've been short for cash in the past.

I am honestly not very savvy when it comes to data which is why I've partnered with a brokerage that is primarily a data company. As soon as this storm turns over I'll ask one of the tech guys your question and see if they know something similar. 

Welcome @Jensy Matute ! Hope you're preparing yourself for the storm coming. We will be very busy after both with helping out and business opportunities but feel free to reach out if you ever have any questions!

@Michael Farrugia I actually just finished a meeting with my team right now debating on what route to take but we have an idea on different avenues depending on what the outcome is. 

One thing is for sure and we will undoubtedly hit the streets full on searching and acquiring distressed properties as soon as the flooding goes down. Being in touch with many contractors and public adjusters will finally pay off more than it has in the past.

Being that you are OOS I can imagine online marketing being very effective if you are skilled in the practice.

@Darius Lipsey what are taxes? 

I would ask for rent roll or bank statements to show history of long term reliable tenants. 

Have you checked market rent in the area? How old is the duplex? 

What are projections for future rents and economic growth of the city/subdivision? 

Rough numbers sound good but we can't give you an opinion without more details. 

Hope to hear back from you soon!

If you put the numbers I think we'd be able to better assist you. Remember that cash flow and COCR are subject to a mortgage while Cap Rate is not.

@Stefano Gasperini I know my answer is one no one will want to hear but I've seen some of the greatest rental returns with section 8 properties. 

I rented a property for a buddy of mine in homestead and got it rented for $1,900 when comps in the area were asking $1,700 monthly. The reason why was that we were the only property accepting Section 8. He paid $110,000 for it in 2009 so he's cash flowing very well.

I know there is a lot of stigma towards section 8 but I've noticed if you screen them like any other tenant you should not have a problem. Section 8 or not, there are good tenants and there are bad tenants. Just my $0.02

I'm going to have to agree with Matt McConkey I used to start out cold calling FSBO's and Absentees and the conversion was horrible. Rather stick to other sources of marketing and bring the leads to me. Funny how you were hesitant about calling cash buyers which is the category I find the most success with. The thing is I only call when I have a deal. Not just to introduce myself. Most want to hear how you can help them first before knowing anything about you. If it's a good deal they're almost always happy you called! Happy investing!