All Forum Posts by: Charles Kao

@Dexter De Mesa I assume it's in the student ghetto or Edison? That's not a bad area if you are picking up a portfolio but make sure you have a higher CAPEX reserve in that area. 60k for SFH could be high but if they are in great shape but definitely possible and considering you are going straight to a portfolio thats not too bad. Who are you using for PM?

@Dexter De Mesa

60k in a Michigan metro area is the hood for sure or a tertiary market, which I would personally avoid unless I knew the market well. I don't buy single family homes anymore but if I did I probably would not be buying that low unless it was a total rehab or an emerging secondary market. What city is it?

@Dexter De Mesa Impressive returns but you don't get the appreciation like Cali or SE United states. I invest in the midwest and would say you really have to be careful of secondary markets as net population migration is into other areas of US. With that being said there are some strong metro areas that offer alot and low cost of living which is attractive. One of the best moves I ever made was back to the midwest. My mortgage is what some people

pay for parking and I have hundreds of miles of fresh water beaches within 25 minutes of my house and you can't find that just anywhere. Regardless of where you invest make sure you have the team in place to execute. Reach out if you are interested in Michigan and we can talk more.

@Robert Prell

Michigan laws are not favorable at all to Tiny Houses. Weather is harsh and the laws are only getting stricter because they can't make money on taxing them. If you do a tiny house you really need to have a ton of land and even then the municipality finds out can't tell you you can't. Flipping tiny homes also is low margin. There are a few people in our member group on my profile that have done them. You should pick their brain.

@Ted Baker

Its really hard to get into investing when you work that long of hours so I would invest passively if I were you and also look at finding something that does not use all your free time as far as W2 job. You do need to spend quite a bit of time vetting your deals you invest passively in. Also consider does real estate itself attract you or is if the self employed route appeal to you more with real estate being the best outlet to you at this point. This will be a good question to answer for determining how you invest.

@Derek Larson What do you want rough numbers for from PM if you already have houses picked out? Don't know much as to your level of experience and quality of deal but if its a screaming deal and you know it is then get it under contract but hard to say without your background.

@Conway Morgan

Ask to speak to a new agent in office and to real estate in general for perspective. What support do they provide like dotloop, admin to writeup deals. As you become a top producer what do they do to retain you. What do they suggest you do on your first 90 days on the job to build your book of business.If you are really new I would not be hungup on splits as much as the support and training. Once you start selling everything is negotiable.

@Benjamin Manibog

Huge ripoff. A good investor/realtor can fill that role easily. For that much I would just buy a random house and count the money lost as education because you learn from doing.

@Benny Morfas

I am assuming this is NOT separately metered? I personally do not buy anything that small that is not separately metered but if I did there would have to be some upside play whether its flipping it through forced appreciation or the area having some upside because its close to a good area. I doubt this is the scenario for this one so consider that these type of properties may be good for cashflow but you can't scale with these type of properties unless you plan to self manage the whole way. Managing the tenants with PM will be expensive.

@Kevin Allen AirBNBs have nothing to do with hotels. It's a different market and you just need to make sure you target the renter that the hotels are not.