All Forum Posts by: Jeff Arndt

I disagree to a slight extent. Lets look at two properties A & B. On paper they are exactly the same. They are both 10 unit properties with average rents in the $500 range and they have the same NOI after all analyses.

However, property A needs a new roof and a new HVAC system. One can argue that these types of upgrades will have no effect on the rent that the property could receive. But a seasoned buyer will recognize this and immediately discount the property from the CAP rate valuation knowing that their future CAP EX will be greater.

Property B is right in line with the rest of the neighborhood and is a true reflection of the market. The CAP rate reflects what its true value is.

By making upgrades to property A, the highest you can increase its value to is equivalent to property B.   Technically we raised the value of property A, but only to be in line with what everyone else in the market is currently paying.

@Clint Williams to piggy back on your story.  Even a flipper should know that every dollar you put into a flip doesn't always come back if you've reached the top of the market.  Just like in a mult-family, if you don't make upgrades that either increase the income or decrease the expenses, you haven't really changed the value unless the property started far below the standard of the market.

Thanks for the responses.  I guess the whole purpose of a resume is to get your foot in the door.  And for a professional job outside of RE it probably won't add much value in that regard. 

Hey guys, I'm in the process of sending my resume out to other companies for the sake of seeing what else is out there.  I'm happy with my job but as a wise man once told me, it's a great idea to send your resume out every year to see if anyone bites.  You may not accept the other position but at least you will have made an active decision to stay.  And that piece of mind will hopefully cure the "grass is greener" syndrome.

Anyway, I'm an engineer with a few rehabs under my belt and I manage 4 units myself.  I want to add a blurb in my resume under "other interests and activities" about real estate:

"Part time landlord and limited residential rehabilitation projects completed."

Through this I wish to show potential employers that I am driven, self motivated, able to multitask, undergo complex planning.....the list goes on.  Everyone here knows the benefits....

However, real estate can have negative impacts to the employer.  They may feel that I will be looking at properties all day, on the phone all the time, ignoring my duties of an engineer.

Does anyone have some insight to this? Thanks!

@Ian Hoover 

I vote Monday.

@Ian Hoover I am very interested in another meetup as well.  I can second that Jerry's meeting is excellent and I would love to go however Thursdays are bad for me.  Please keep this forum updated on anything you develop!

@Bill Gulley 

But what about cash reserves?  How conservative of an investor are you?  What do you typically like to have liquid for evictions, repairs etc..?

Thanks @Bill Gulley .  My only concern is that I may be running a little cash poor to progress and buy a 3-4 property portfolio from a tired landlord(even with no money down).  In either case I may need to sell the one that is performing the least to have adequate cash reserves.

Keywords:  Pittsburgh, Buy and Hold

Looking for guidance on where to go to next.  I currently own two rentals that if I were to sell, would net me about 50k in my pocket to use as working capital on another project.  The problem is they both cash flow positive and are a breeze to manage.  I also poured my blood sweat and tears into the second property as a live in renovation and I find it very hard to let it go.  

My problem is my business is moving too slow and I am only using my extra income from my job to purchase more rentals.  When I look at my 5 year goals versus my current pace, what I'm doing. just. ain't. cuttin. it........

My goal is to use a combination of other peoples money and my small ball of working capital to purchase distressed properties, rehab, then hold as rentals.  I want to then cash out refi on the back end and start the whole process all over again.

So, the age old question, if you could start all over what would you do?

Does anyone else implement this strategy and would you recommend it?  Should I continue the long guaranteed (well mostly) method of saving and scrimping to buy my properties with my own funds?  Or should I take on more work and make things happen quicker?

Much thanks in advance!

Yes, in my state it shows up on the HUD and it is shown as a credit to the buyer.

I wouldn't give up on the idea of owning a duplex just yet.  I think if you can sell her the dream, ie. what you ultimately want to achieve through real estate, you may be able to still persuade her into living in a duplex.  Say for instance your ultimate goal is for BOTH of you to be able to stay home with the kids, or if you want to travel the world, start a business, etc.  You may be able to convince her otherwise.  I know at first my girlfriend couldn't rationalize all the work for just "$200 per month".

My girlfriend wasn't initially on board either, but her ultimate dream is to someday own an art studio where she prints and sells artwork.  I explained to her what I am doing with real estate and how we could both achieve both of our goals.  She is now fully on board and she is actively helping my look for properties and design the rehabs!

If you can't sell the dream, another good option is to continue to rent while you purchase investment property that you don't live in.  I wouldn't condone this forever, but it is a great way to learn the business while capitalizing on limited resources.

Good luck!