All Forum Posts by: Jason Gutierrez

Hi, I'm looking for a good/reputable property management company in the Fort Wayne, IN area. Any recommendations? Thanks

1410 Grant Avenue, Fort Wayne, Indiana 46803

4 bed / 1 bath

2,164 sq ft

Asking Price: $19,000

Estimated Rehab: $20,000

After Repair Value: $65,000

Rentometer (median): $675

Fantastic off market fix-n-flip or buy-and-hold opportunity. With a little work, this property will fetch a nice profit or give you a solid cashflow/ROI.

Price: $14,500

Bedrooms: 3

Bathrooms: 1

Sq. Ft.: 1,376

Rentometer: $505/month

Zillow estimate: $45,170

Hi all,

I'm not sure if others are hearing/feeling the same, but it does seem like we are approaching a peak in the housing market. I have no idea if it's 6 months away, 12 months away, or 5 years away but I feel like some of the signs are starting to appear. 

I know that no one knows, and for all we know the peak is 10 years away or more, but just for discussion sake, let's assume that a peak is coming soon - like in the next 6 - 12 months. 

Here are my questions:

If this were true, what would it mean for all the rehabbers/flippers out there?

Does rehabbing and flipping all but go away in a declining market?

Are there flippers that are able to keep flipping successfully in any market?

Thanks for any comments you all might have.

Thanks everyone for the replies. You are all confirming what I am experiencing - that finding a worthwhile deal is the hardest part. I guess persistence is the key!

Hey flippers and rehabbers in Southern California - What is your biggest pain point in your business process? 1. Finding deals? 2. Financing your deals? 3. The actual rehab? 4. Selling the property after rehab is complete? 5. Other? And for bonus points - How do you find the majority of your deals? 1. Realtors? 2. Wholesalers? 3. Trustee sale? 4. MLS? 5. Contacting the owner directly? (yellow letters, phone calls, door knocking) 6. Probate? 7. Other? Thanks!

What kind of cap rates are you seeing with your vacation rentals in Hawaii? (Annual NOI/purchase price)

@Mark Masiel @Joe Villeneuve @Marco Santarelli @Larry Fried @Glenn McCrorey @Jay Hinrichs @Johnna Lodge @Ryan Harthan 

Thanks so much everyone for your comments!

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Here's the TL;DR:

Can I get the best of both worlds or do I have to choose between:

Option 1:

Purchase Price: $115K - $135K, Good neighborhood, Great highly reputable turn-key/management company, Net CoC 6%-8%

Option 2:

Purchase Price: $60K - $80K, Okay neighborhood, Smaller/lesser known turn-key/management company - they might be great too - just less track record, Net CoC 10%-12%

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Here's the LONG version:

I feel like I'm drinking from a firehose :) So much great info to chew on and digest. 

I'm definitely leaning toward turn-keys but I'm really struggling with either going with a better area (and more premium turn-key company) where it appears (at least on paper) that my CoC return after all expenses is 6%-8% (with the assumption that I will be able to "sleep better at night") versus going with a lower class area (and potentially a smaller and less reputable turn-key company) where my CoC return is 10%-12% (or higher). At least that is what I am finding so far.

As far as how to purchase, I'm leaning strongly toward paying all cash. I know that I can significantly increase my rate of return if I use leverage, but my goal is to maximize the actual cashflow dollar amount and not necessarily the rate of return itself. I'm also pretty averse to taking on debt, so I think paying cash is my strategy. I know that most people on here would strongly disagree with me on that but with my personal situation - I'm a self-employed entrepreneur with very uncertain and volatile income from year to year - I really don't like the idea of having a bunch of mortgage payments.

Hey @Ali Boone  , thanks for chiming in :) I've been looking at turn-keys in Memphis, Houston, Dallas, Toledo, Dayton, and Birmingham. I also started to check out the offering that Growth Equity Group (http://growthequitygroup.com) has over in Virginia - pretty interesting Class A townhouses - but of course the net CoC after all expenses (taxes, insurance, management, vacancy, repairs) is around 6% for their development in Virginia. And that's only assuming a 3% vacancy rate and 3% for repairs. That seems low to me.

I guess I'm still trying to figure out this:

Can I get at least 10% CoC (buying the property all cash) on a property, but still be a high enough quality property, in a high enough quality neighborhood, with a reliable turn-key company, and be virtually hands-free, worry-free, consistent, passive income? Or does the old adage ring true, "You get what you pay for."?

@Gregory H. 

Hi Joe. I attended one in Irvine last month, but will definitely come check out the one in Lake Forest. Ideally, if I can find a good cash-flowing SFR within an hour or two drive from San Clemente, I would probably prefer that over starting out several states away.

Thanks again everyone for your thoughts and advice! The BP community is awesome!

Hi everyone,

BP newbie and first post in the forums. I live in Orange County, CA and am looking to buy my first buy-and-hold rental property. I've been looking outside of Southern California as I have not been able to find many properties that cashflow well in my neck of the woods (obviously).

Here's my question:

If I am looking to purchase a rental property with all cash, what is a realistic cash-on-cash return I could expect if I purchase from and utilize the management services of an out-of-state turnkey company? From my initial research so far, it's looking like the ROI is typically around 8% if you don't include vacancy and maintenance. I'm seeing that most of the turnkey companies don't like to include vacancy and maintenance in their calculations, because they are not fixed costs. So 8% seems decent, but of course there is going to be vacancy and maintenance, so in running the numbers at even a 5% vacancy and 5% maintenance, the ROI is more like 6.5%.

Is this a pretty typically return if you purchase from a turnkey company and have them manage the property for you?

6.5% is not sounding too exciting to me at this point.

Please excuse my newbie lack of knowledge, and thank you for any thoughts you might have!