All Forum Posts by: Jared Hottle

I echo the sentiment. You certainly can ask or have your agent ask if you have someone representing you but I think it is a bad look and is going to cost you more than than 1k or 2k over the course of your real estate investing career with less people wanting to do business with you and those representing you spending a little less time on your projects knowing you may do something like that again. Additionally, being only a couple thousand off seems not worth it when you look at the expenses you are incurring with tax, insurance, interest, etc but if you truly cannot make it work I would hold strong to your number and hope someone comes along

Midwest markets scare me a bit as they are not destination type places to stay. However that being said I had a similar experience in Omaha when I travelled there for a weekend. Seems like demand was high and supply was low. Price seemed high for what we got so maybe there is something there. Also, those midtier markets may not be bad as likely the zoning and use ordinances have probably not expanded to address short-term rentals.

I think the first thing I would do is connect with local banks in the area you are wanting to move to in the Midwest. Tell them your plan and fill out their applications and see if you can afford to buy while still owning your house in AZ without rent. This will give you the most information possible. I do not think I would put it up for rent at least until you are under contract with a home in the Midwest. As far as the Midwest goes. Home values likely will not increase like the AZ market but they have increased. You are still going to get a nice deal if you work at it and know what you want and are aggressive when you see it. If you come to Iowa would love to help!

I think I agree with Bruce. Seems like it may not be worth your time if he wont even let you walk the property and already is complaining about low-ball offers. If you could walk it and figure out how much it needs to be rentable then I think you can get to an offer. When they want me to throw an offer out first I usually explain to them the 1% rule and what I think it will rent for or is currently renting for. If the 1% rule doesnt happen in your area then you may need to adjust that. I find educating before an offer at least makes you seem fair and honest. 

Midwest is going to have this. We have some in Northeast Iowa. Cashflow will be great. appreciation will be less but some even reach the 2% rule.

I like this take. We do not see appreciation like many markets but recently, especially this summer have seen more than anticipated. For me if it cash flows you are going to be in good shape. Buying under value to fix up is also important as it builds the snowball so I try to buy value add which may be perceived as under value. Unsure. Where I really agree with you is the buy under value limiting belief that 80% of new investors have. It is crippling and had they just bought something their values would be going up, debt going down, and inflation would not be eating up their cash positions. My two cents.

I think a HELOC should always be a short-term funding source like if you are doing a BRRR or just want to make your financing terms more attractive to a seller since it is not subject to financing. With this in mind the #1 tip I have is talk to local banks before you buy a deal. Tell them exactly what you want to do and make see if they can help you. If you want to do BRRR tell them you are buying a house cash and want to finance it after you are done fixing it up and want at least enough money to payoff your HELOC.

This too shall pass. The only constant in life. Breathe, regroup, and get after it. You got good terms so don't panic. If you got some reserves for turns see if you can non-renew or cash for keys your major problem tenants and work with PM to get a better screening process. Once you get things stabilized figure out how some of these issues could of been avoided and use it to filter for your next deal. Unsure on the makeup of these properties but it sounds like problems that occur alot in older homes (1930 or older) and converted single family homes like up/down duplexes. I have seen this alot so anytime a deal like this comes up it is a pass for me.  

Are you looking to invest in your area or are you looking in longer distance markets? What strategy do you like the most from your reading and research? (flips, long-term rental, STR, househack, BRRR) Definitely having multiple exits is very smart of you but going in with conviction on one strategy and pivoting later if needed is the best I think

I think if you are looking for properties on the MLS finding a funding source should happen first. Although demand has slowed a bit in most areas still can be competitive and funding source or pre approval letter will be important in the offer. If looking for deals off-market like driving for dollars or networking you could find a partner after you identify the deal as if it is a good deal chances are you will find someone who wants to partner on it. Defintely go to local real estate meetups and network as this will be your best chance of finding not only a great agent but also money investors.