All Forum Posts by: Gregory Schwartz

when it comes to long distance investing, how do you all feel about having your agent and management under one company? 

I feel like it could make communication easier and helps ensure the agent is investor friendly. But it takes away from some of the checks and balances provided by having 2 separate entities looking after your “best interests”. 

I am currently reading and attempting to implement the lessons in David Greene's book "Long Distance Real Estate Investing". I have struck out locally but feel confident I have built the skills needed to recognize and analyze a good deal. Thanks to "Set for Life", I am also in a good place financially to invest my hard earned money.

The Huntsville area appears to have steady growth, employment opportunities and generally favorable rent to home value ratios. Now I'm trying to find a trustworthy and reliable team starting with a good agent and property management company. Do you have any suggestions? 

My goal is to find a purchase a 4-plex with a standard mortgage that will cash flow $100 / door.

Thanks for all the help and great advice as I continue this quest. 

I'm looking for some advice from a local park owner in the eastern North Carolina area. Specifically, I am concerned about finding a capable property management company that will be willing to manage a smaller park (5-10 unit). The large majority of the parks I'm finding are park owned homes and I don't have the flexibility in my schedule to actively manage the maintenance on these parks. 

Thanks

Thanks for the fee back. Unfortunately I think the seller and possibly my broker are over valuing this property.  11 of the 12 MH are park owned and in rough shape. The owner is claiming maintenance cost is less than $1000 per year for each home. Based on some rough numbers the park is worth 200k max but hes asking 550k. 

Im analyzing my first MHP and the seller didnt include property management as an expense when calculating his NOI. Even if it will be self managed do should I still include management cost as part of the operating expenses? From what I can tell he is over valuing the property based on a unrealistically low operating expense. Keep in mind this is a small park (12 trailers).

As this process continues along I'm sure I will have more questions so I thank you in advance for your patience. 

@Will Gaston , this thread made me day trip about my days as a college kid renting 2 blocks from 5 points on Lee St. Our only criteria was to get as close to the bars as possible, and we definitely paid for this convenience.  And yes we also broke a window or 2 while we were there.

Great thread, you've inspired me to focus my search close to UNCW here in Wilmington, NC. 

@Account Closed I am currently searching for homes in the Holly Ridge/Hampstead area. After spending nearly everyday searching the MLS I can confidently say that off market is going to be your best bet to find a deal. So far I haven't found a deal that surpasses the 1.3% rental to house value ratio. As a Marine living in Holly Ridge, I can confirm that this area is sought after by Marines looking to live half way between base and Wilmington which makes for a strong rental market. If you have questions about particular neighborhoods feel free to PM me.

On a completely unrelated note, I grew up not far from Fredrick in Woodbine, MD. Small world.

Thanks for all the great input!

@Christopher K. you make some great points. Based on your insight I will likely look to make a low ball offer and plan on flipping the property, this would require more upfront capital, but will give us a "bigger pocket" for later deals. I've been aggressively searching the MLS but clearly need to expand my search to off market deals.

Does any one know of a wholesaler in the Wilmington / Hampstead area that deals in the 60-80k range? My long term strategy is to continue to pursue properties that fit BRRR until I can build the capital and experience to tackle commercial rentals.

@Nathan Gesner i appreciate the feedback. 

- I have no experience rehabbing or working with low income rentals. To mitigate this I did a rehab budget based on J Scott's book and worked in an extra 30% for unexpected cost. 

- if I find that I am overwhelmed managing the property, I have factored in 10% for property management, but would like to take a shot at self management. 

- I uses other sold 3/2 manufactured homes in the same neighborhood for my ARV then added in a 5k buffer.

- Besides the forced appreciation from the rehab I dont factor in any appreciation in my calculations. 

- Also worked in the budget is labor cost for the rehab, if I do the work I will save money and increase my CoC, but because am currently employed at 60hrs a week I will likely hire out contractors.

- I feel that 10% CapEx/maintenance should cover any damages (I have extra capital set aside for pop up expenses)

-I view this home as a stepping stone to a larger portfolio and a good way to learn about the business with out being fully invested in a large multifamily or extensive rehab that requires roof, foundation ect

@Bill F. 

- my ideal tenant is a family that wants the advantages the school district offers but cant afford a 40k down payment on a 200k home. I will also market to the military population from New River and Lejeune (Sgt BAH is $1100) and the folks who work in and around Wilmington but for similar reasons cant afford the area.

- I have not yet found a HML and or private money and will be the focus next week. If you know of anyone who might be interested I would greatly appreciate any suggestions

-if i cant refi I'm confident based on sold houses that I would be able to flip the house. In a desperate situation I can request a loan from family, who are willing to help

https://www.biggerpockets.com/forums/88/topics/456050-first-investments-property