All Forum Posts by: Jacob A.

@Mark Tallent

Take this advice for what it is worth. If you are new to real estate investing, that many units may be too much to handle. A LOT of work and systems need to be in place to handle that many units at one time. Not to mention the cost of that property being quite high. I understand that the rent is a little low, but you are going to be in over your head if you don't have a STRONG foundation. 

Look at other deals, I suggest smaller multi family units to get started. try and house hack a tri or a quad. 

Dont hesitate to reach out if you have any questions!!

@Account Closed

I totally understand where you are coming from. I was active duty and I went through the same thing. What I did during my down time was 

1) Obtain real estate license ( it does have some cost so be aware) 

2) I actually started attending my local REI group to network and begin building connections

3) I made friends/mentor with a guy who was in the business of flips and I spent a lot of time with him at his properties learning the construction side of the business and learned how to effectively price and plan for renovations. 

4) I dedicated myself to working a part time gig in the real estate business. I found a company that actually was looking for someone to remove signs and lockboxes from their listings as well as doing random clean-ups of homes that were vacant across town and it paid 20/hr ( it wasn't steady work, but it worked for me and my schedule)

5) Focus on your bigger picture and Never stop reading and learning. I know you said you read a lot already, but you can never have too much info.

@John LaVecchia

Make sure you keep plenty of reserves for rehab and closing cost and an emergency fund in case something goes wrong. $6,000 is a GREAT start and I would suggest having at least six months of Expenses relating to the property to ensure that you don't get caught in a rough situation if something goes wrong. 

Great job at 19 to be planning for the future and always avoid debt unless it is to build your portfolio of rental homes.

Keep Grinding!!

@Brenton Tigner Jr

I persoanlly am in a partnership and I also am a licensed agent. Our partnership works well and gives us the ability to have all access at all times to look for deals and such. Our partnership is 50/50 and we currently take the monthly cost of my licensing into our expenses as a partnership. 

I can not stress the value having a license and having access to potential deals can add to your business. 

In my opinion, I DETEST flood zoned properties. I have been in situations where I have had flood insurance go up over time due to the insurance provider. I would definitely attempt to try and negotiate something with the sellers. 

A strategy I have seen used is in the contract have an addendum stating that the owner will prepay or cover the first 12/24 months of flood insurance. 

Paul, 

I am not aware of any specific site for the rental history of a property, but I use the website www.rentometer.com as a guideline for the market rates in that area. 

Be advised, this site doesn't take into account the conditions or upgrades or anything of that particular home nor does it compare the conditions of the properties it is calculating either. But It could be a good place to start... 

Hope this helps 

Jalil, 

Seems like this deal is a solid deal if you can get the other units rented! The one thing I will caution you with is this, if you are struggling to make the $600 payment, you might want to evaluate if you are really in a position to be investing. I am by no means trying to be negative, but the truth to real estate is that you will need *some* money especially if you are saying renovations will be required. 

In my opinion, I have have bad luck when asking for too much info in that class of property. The thing I would consider doing is eliminating the questionnaire and allowing the tenants to not have to answer so many person questions. You also could offer some sort of an incentive to entice the prospects.

@Ryan Johnston 

I suggest you don't get caught up in the whole conundrum of the legal entity you are trying to establish. If you have found a good deal, take the deal and make the numbers work and make the return on investment. 

DO NOT get worked up over the legal stuff and allow it to cause you to miss the deal! 

Speak with an attorney or a seasoned investor in your area and they could offer insight into your questions. 

From an investing point of view, the city of Madison which is about 4 miles west of Huntsville is a growing area and they continue to build and add commercial properties and shopping centers in that area.