All Forum Posts by: Joseph M.

Hi Eric P. , I am also skeptical of the one stop shop type places . have you been able to achieve a true BRRRR in Cleveland , investing from out of state ? Or do you use another strategy ? How often do you travel to Cleveland ?

Took a look at the website . A couple things I noticed . It says all properties are fully renovated with a new roof . Seems kind of weird to put a brand new roof on every single rental doesn’t it? I mean if it needs it of course . Also it mentions rent is guaranteed the first year and then you can get “rent insurance “ after that? What is rent insurance ? I’ve never heard of that . Also this is one example they use of cap rate . Nothing for maintenance or repairs or vacancy etc .. I guess they would probably say there won’t be any repairs needed since it was rehabbed .. Investment figures: Purchase Price $45,000 Rehab $20,000 Closing cost $2,500 Total investment $67,500 ROI figures: Rental Income $950 Expenses: Property Management $95 Property Taxes $77 Insurance $60 Net income $718/ month (12.8% ROI)

Great podcast . Since Paul is also in the L.A , I found it insightful to hear about how he is investing locally in the current SoCal market . Los Angeles has rent control but he says he still purchases properties that have rent control tenants and mentioned being able to buy out tenants etc . Would definitely be interesting to hear more about that. Paul is also the second largest franchise of Keller Willams offices ( outside of Texas where they started ) which is super impressive too of course .

William Richardson You should take a look at David Greene’s articles . He’s also written a book specifically on investing out of state , which I haven’t read but have heard good things about . He’s also been on the biggerpockets podcast. He lives in CA also and is a full time realtor and does out of state BRRRRs . Having the right team /systems in place of course is essential. I could see it being challenging especially working 55-60 hour work weeks like you do , but not impossible. https://www.biggerpockets.com/renewsblog/author/davidgreene-2/

@Michaela G. Interesting. Those are great purchase prices considering the rents. I don't know much about the Atlanta market, I know that things had gone down a lot during the housing crash, but it seems like things have gone back up a lot. Maybe similar too Vegas and Phoenix , things were so low and now 3x or more especially the lower end homes. 

That sounds smart to wait 4-5 years and cash out for a big profit, while getting good cash flow in the meantime. 

Would like to do something like this in L.A , but now even duplexes are priced at like $500,000 maybe on the low end with rent control tenants, it's kind of funny to see these being marketed as 'great investment property' when one would be losing a bunch of money by buying it.

Zhenhua Y. I’d say it would depend on how much negative cash flow a month . How stable is your job/income Any risks of layoffs in a downturn At some point the economy will experience another recession I don’t think it’s too crazy to think it could be within 5 years . As other posters mentioned long term SF property should remain in demand and desirable just like property in L.A or NYC which are other cities with a lack of available land and many things that attract people from across the country and globe . But there are always risks and past performance isn’t a guarantee of future results .

David Poulsen true . I guess the trick is buying right in the current market in the Bay Area and buying deeply under market versus say the Midwest . There was a guy I listened to on a podcast that was wholesaling in SF and making huge profits like 6 figures or more per deal .

Michaela G. This is a really interesting concept . I’m guessing since it’s a D neighborhood there is nothing else like it around and therefore you have no real competition . How much was purchase price ? How much did you put into the properties ? Are the rents much higher than you would get without the creative community concept or is it more that you are getting a lot of demand and better quality tenants ? I could see this really helping to change the surrounding community as some of them will probably open up businesses or art galleries etc in the area . Just curious is it a certain age range that live in your properties or is it more a mix ?

Welcome to the site. I’d also agree with James Wise that it makes sense to keep your primary . The 10 percent fee ( realtor fees and closing costs. Etc ) could take a while to make back in rental cash flow . You are lucky to live in a market that offers decent cash flow these days . Best of luck .

Yeah if you look at all the liar loans that were created during the last bubble and selling off the bad loans as mortgaged backed securities . I do see how it could be viewed similar in a way . Lending has definitely loosened up and I’m sure there is some shady things going on that we won’t hear about until it’s too late/after the fact . Subprime lending is back and growing just as an example . They say it’s not as risky as last time but they said it wasn’t risky the last time either . https://therealdeal.com/2018/03/29/us-subprime-mortgage-bonds-are-making-a-quiet-comeback/