All Forum Posts by: Jassem A.

I am doing it

 Yes the labor to install them can be extremely high even though sometimes it only takes an hour to install if the wire is already ran or you are hooking up to 110V. I've installed about 20 of them and usually averaged about an hour to install sometimes a couple hours if I have to run a new wire.

Mini splits are cheap if you DIY and expensive usually if you don't. They are like 300-500 for AC only models and 400-700 for ones that do heat (1 ton). They come pre-charged and are pretty easy to install.

How about option 4, owner finance the home above current mortgage rates with 10% down. You will make more in the long run than leasing or selling outright.

fix it yourself or sell with owner finance with full disclosure and let the next person fix it

Think of it from the perspective of a realtor. Would you want to waste up to a few hours of your time writing a low ball offer that the seller will probably just throw in the trash? If you want to write low ball offers then just print off a standard purchase agreement and fax it to the listing agent's office or email along with a bank statement or mortgage prequalification letter. If they consider your offer then they'll probably have you fill out their own purchase agreement as a self-represented buyer otherwise you will probably not hear back. Before you even do this you should just call the listing agent and ask "Is it still available and if so would the seller consider an offer of $X?" If the answer is not a definite "no" then prepare the purchase agreement and send it over to the listing agent.

What helped me the most is realizing that it doesn't scale, at all. Switched strategies and now what I am doing does scale.

You don't compete. You don't buy rentals when rates are elevated. Ideally you don't buy them at all. People would rather own than rent so it's better to provide owner financing. The only time leasing might make more sense is if you are making a killing on the lease amount because you're running a group home or old folks home or something like that and only if it is guaranteed money and enough to easily cover expenses.

The way you grow quickly is not with traditional leverage but with short-term private money. The private money finances the distressed properties with nothing down on a short term and you finance the properties on a longer term and still cash flow. You can then sell the note or a partial note (after some seasoning) if you'd like additional capital without borrowing from the private lenders. 

This works better for out of state than a rental because you are just a lender and don't necessarily need a team or a property manager. Someone to put a lockbox on and take pictures (or video) should be enough typically. Bank loans usually won't work out unless they are unsecured loans because the bank might call the loan due when you seller finance it rather than lease it.