All Forum Posts by: Austin Fruechting

@Dennis H. question of # of units, management and area; What monthly rental rate per unit are you talking about for 35% expenses? What level of finishes? Are they all recently remodeled?

 That was a beautiful flip Mary!

I would do a smaller increase for the current tenant because I would rather keep them there then have the expense to turn the unit over and be vacant for a while.  If they aren't going to renew then try out the $1300-1400.  

@Steve Vaughan - That's great! I agree that if you can sell without an agent to a buyer without an agent for the same price then saving that 6% can be huge!  I've only flipped a couple properties so I don't have much experience.  

Spend a day with excel (or two).  Run scenarios out for 20-30 years and see where each decision leads you.  It will spider out as well.  Whatever decision you make today means a different set of decisions that can be made in another year or two, and what you decide then means different decisions in another while.... etc, etc.

I wouldn't say it's a bad decision to pull the wealthfront. I started with little and reached financial freedom within 7 years doing some BRRRR and other buy and hold deals, and I think 10 years is doable for other cash flow investors.

Make a list of all deferred maintenance... baths/kitchen ages, age of floors, etc... anything that may need replaced soon.

Major issues: 

• HVAC ages
• Roof - look at condition and look for leaks inside
• Check electrical box - fuse and knob/tube wiring big issue
• Foundation
• Windows/trim 
• Siding condition

None of those are make it or break it issues, you just want to make sure you buy at a price that reflects the deferred maintenance/major issues and have a plan for it.  If you get it under contract use a well reputable inspector during your due diligence to spot issues and a GC to estimate costs if needed. 

3% to seller and 3% to buyers agent right? So only 1/3 the profit if you did FSBO and the buyer isn't using an agent, which most do. So using a seller's agent is really only 1/6 in your calculations.

Knowledge conquers fear. I'm not saying you should or shouldn't use leverage. But you should figure out where this fear is rooted and address it. 

Indecision, doubt, and fear are the three big internal enemies of success. Where one is found, the others are lurking around the corner. If you are doubting yourself and your analysis at every turn, you will be incredibly indecisive about selecting a property. You may become too fearful to ever move forward. For every successful real estate investor out there, there a dozens of other would-be-investors that were too filled with fear to ever do a deal.

These enemies of success have one powerful foe that easily vanquishes them. They are conquered through knowledge. It's as easy as that. Educate yourself fully. When you have doubt, step back and figure out why. It will probably reveal that you have a deficiency in your education. If you take the time to fully educate yourself and KNOW that you are properly analyzing a rental property, it will eliminate your doubt and fear.

It's definitely better to have too much than too little. 

One thing I've done is set up a LOC. That allowed me to acquire a little faster by keeping my cash reserves a little lower because I also had the LOC for back up as well.

Doors = Rental Units

20 SFR = 20 doors

20 unit apartment building = 20 doors