All Forum Posts by: Wayne Kerr

@Michael Mastantuono

Depends on the property. Ask your realtor to ask the listing agent first. Then budget and come up with an offer accordingly

Go look at the property also. Should see separate electric, gas, water meters

 What zip report site did you use?

I just invest locally so I know the area - but that is some badass data that census provides. Another good tool to screen properties more thoroughly 

I like the south, gulfport, biloxi etc

 I'd agree - I think the area sucks and the bad tenants are just a byproduct of that. 

Unless something major is happening to revitalize the area (I don't believe there is) I don't think it's worth keeping.

On top of that, class C/D areas should cashflow WAY more - there's much more inherent risk - so you need the extra cashflow to mitigate that risk (which is doesn't sound like you're getting)

Also you have to tenant proof these areas - so my sinks and bathtubs all have grids installed where the drain is. These kinds of things prevent the tenant from putting anything down there. I do cement flooring because they can't crack a tile, scratch it etc etc. Make it as simple and stupid proof as you can

This is simple - If it's something I need to understand myself I've at some point always made my own spreadsheet - doesn't matter what it is. If you truly understand what it is you're doing, you can make your own. 

If you can't make it, then you don't understand what you're doing...and you probably shouldn't be doing it. Again, very simple concept to understand. 

I agree with most of your post - but you completely lost me here. 

The government does in fact rob you every step of the way. Half the reason I started investing in real estate - to save on taxes...AH but they still find a way to get you...passive RE investor?! Lets put income limits on what you can deduct! Stimulus checks...nah we need income limits on that too! But lets send billions to Ukraine! 

I paid 45k in FICA taxes last year, and 8k state tax on top of that. Schools still suck. Roads still suck. City still floods. Didn't get a penny from the stimulus checks. Crimes still as bad as ever. In fact...if you don't get this shot we'll have you fired from your job! Let's actually fire the nurses first! 

We still have one of the best governments in the world relatively - but they completely f*ck the upper middle class every step of the way.

 Agreed 100%. Killing 2 birds with one stone going this route. 

So you have the right idea but the numbers are not realistic 

It would look something more like - 600K (ARV) you'd buy at 350-400K, you'd reno for 80-100K

In my area its something like - buy for 75-90k, reno for 30k, ARV around 150K, rents for 1100-1200. These are LTRs not flips. I typically end up with $ left in the deal but it'd be less than if I put 20% down buying at market price.

The BRRRs typically need a large rehab - this is just the nature of the beast. 30k rehab on a 600k house really isn't much. We're talking basic cosmetics (I'm assuming this is a nice house and not a small downtown condo)

It's still hard for me to do in this market - the last house I paid 130k for, rehab will be 30k and it'll appraise for 175k or so, so I have a little equity built in. Reason I did it this way - house popped up a few streets from where I currently live, 500 sq ft bigger and I can turn my current house into a rental (refinanced it at 115k at 3.25% back in 2021). Now I did make it a lot nicer than it needed it be - for a rental I could've put 10-15k in it and called it a day, and it would've been a nice rental. But I did all new appliances, granite countertops everywhere, stained cement flooring, new doors, electrical box, recessed lighting, big backyard shed, gutters, paver patio etc...you get the idea

If someone is asking you to send them deals they need to give you some specific criteria such as size, type, location, price etc

You will then set up parameters to send them properties that fall within their criteria. If you come across anything special or different you can send that to them as well. Not your job to run their numbers - you are not a mind reader. You simply provide the information and let them make the determination. 

As a realtor I would think you have some access to information/deals that the rest of us don't - those are the types of deals investors really want. 

This is a tough one - what would it cost to fix/replace the unit?

I'd probably go ahead and do that if it makes sense (a couple hundred dollars won't kill you) and then I'd increase their rent when it's renewal time and get that money back plus some