All Forum Posts by: Adam Gerig

@Ming Lim if you ever would like to discuss more in detail feel free to give me a call or shoot me a PM I can give you some information on current properties we have, past deals, etc. As well as give you a run down on our property management company services.

@Mark Bradford

I think they get a little different kind of frozen up there lol. Although I do concur with you that it has been brutal here this winter. Welcome @Ming Lim if you ever have any questions or any interest in investing stateside let me know!! Actually picked up my first Canadian owner this winter from Nova Scotia she and her husband have been nothing but pleasant!! Good luck and happy investing!

Here in our market, Fort Wayne, Indiana you can get the 2% rule relatively easily. Now there are still some sellers who don't understand how to price their properties and will be asking $50k for a house that rents for $400, but that's why it sits and I don't even waste my time looking at it. I have several in my portfolio that have even reached 4%+ now these are home runs and don't happen every day, but they do happen.

I think if you are an out of state investor and as @Ned Carey

said you know it fits the 2% rule it will at least keep you outta trouble as long as you do your due dilligence on the other things. Ex) make sure you don't have any big CAP EX expenses(roofs,foundations, mechanicals) that you are going to have to eat in the first couple of years of the rental or buy it knowing that and price it accordingly.

Thanks @Jon Klaus my keywords alert just set off on Indiana and I didn't see it in my quick scan guess in the future I'll do a little more thorough reading!! :)

NE Indiana??

Welcome @William H. !! Bigger pockets is an amazing community. If you are around my neck of the woods ever would love to meet up and grab some lunch or coffee and chat. Always up for meeting fellow hoosier investors and sounds like you have identified your niche!! Welcome and good luck!!

Yup I'd look at Portfolio Loans I know that there are a couple banks here locally that will take a look at things and loan on them. The only thing with portfolio loans is that they are all lumped in to one loan know so it makes selling one individually a little more difficult. Although if you have an established relationship with a bank and have wording put in up front that X property is this percentage of the loan then you shouldn't have too hard a time if you'd ever want to sell one.

I agree with most of what people said stay out of warzones, but one of our company's main niches is the border zones. We have tons of rentals that are in the $400-600/month range. There may be more turn-over, but your initial investment is lower as well. I think if you know going in what you are getting into then jump right in. I bought and rehabbed a property for less than $10k and have it rented for $450/month. All new flooring, vinyl windows, brand new furnace. I think your product is also a determining factor if you buy a craphole and never put a dime back into it expect it sit longer and turnover to be greater and your residents to not be the best and the brightest.

To each his own and I don't think anyone's investing strategy is wrong, but if a $10k deal all-in comes along like that again I'd buy in a heart beat. Even with a 20% vacancy(which it will never have) it will return over 20%. So I say if the numbers work and you have a system that works why not??!!

That being said I always tell my owners if they want a more conservative area that I would invest in this area and can expect to pay X and get around a Y percent return(not guarenteed). It's really just matching people with what they want. Now sometimes you'll get the guy who says I want the $30k house that returns 20% and I'll say good luck, but I think if you go in not expecting the moon or having unrealistic expectations you can find a very good property and location for what you anticipate as getting as a return.

@Lee Smith I'd concur with most of what Lee says. We try to keep a lot of our properties in the borders. The returns are higher. The only thing I would say is that with our management company we have a TON of section 8 homes. That being said we have a crew that strictly does SEC 8 make readies so they know what section 8 will pick on make sure they get approved the first time. Typcially, the only problem is the lag behind in payment. Sometimes, it'll take up to 3 months before section 8 starts paying, but when the do it's like clockwork. Direct deposited by the 3rd every month unless it falls on the weekend. Also, your rents tend to be higher we have several that we are getting between $15-40 more a month in rents because it is a sec 8 house. That being said there are pluses and minuses to each.

If you house has old wood siding or flaking paint you can bet your @$$ that Sec 8 is going to tag that and not approve it so you either have to be willing to scrape and paint or put up vinyl siding. It really comes down to just knowing what exactly they want and then not becoming a slum lord. If you are willing to put money back in to keep tenants happy then everyone wins. Plus we make all sec8 tenants sign 2 year lease. It also helps that the president of the local housing authority is one of my good friends so I can always pick his brain if I have a question on where they are going or what in particular they are going to be cracking down on.

@Richard Turner it's going to vary from area to area, but with my personal rentals I charge first month rent up front, second month is pro-rated. Security deposit is one month's rent, but I will if they are strong candidate break it up into up to 3 payments. I personally charge $25 application fee non-refundable.