All Forum Posts by: Jason Krawitz

@Jason Krawitz  Do you know what you could raise rents to?

@Jason Krawitz First off, it sounds like you have a very supporting family - that's great!

Now about the property - the monthly cash flow is okay, but the CoCROI is a bit low for me. Also, I think your vacancy, capex, repairs and property taxes are all too low. 

For the vacancy, I like to estimate closer to 8-10%, even on the higher side for SFRs. You know this market better than I do, however, so go with what you're most comfortable with. 

For capex and repairs, the percentages themselves are great, but the amounts themselves are not. The biggest thing to remember when using percentages to estimate costs for repairs/capex is that many costs are almost "fixed". They're not truly fixed, but they don't fluctuate much. @Brandon Turner talks about this on the BP podcast from time to time. The cost to fix a roof on a $100k property isn't significantly less than it is on a $300k property. However, on the $100k property, you'd need to allocate a SIGNIFICANTLY higher percentage towards repairs and capex than you would on the $300k property to be prepared for the same cost repair. So, on most properties 10/10 would be fine for capex and repairs, but on such a low-priced home, I'd personally go even higher.

For taxes, if you've confirmed this is accurate, then that's great. However, I find it hard to believe property taxes are only ~$240 annually... lowest I've seen was about $700 and that was for a very cheap home as well.

Robert Leonard 

If I were you, I'd learn about unimproved vacant land investing. It's like fixing and flipping, but without all the headaches of dealing with contractors, etc. Realistically, you could do quite well with that war chest of cash and the right network of land investors. However, I wouldn't invest in it alone. I would sync up with an experienced land investor that has done many vacant land deals and do some joint ventures. Then, I'd suggest you venture out on your own once you feel comfortable and knowledgeable.

 Congrats brother!!!

WHOO HOO welcome to the,  "No turning back now" club!

Do or die mn!

Just draft the plan and follow it. You are a shark among the clownfish! 

 Congratulations! You are now free to roam about the country. I worked for a Fortune 200 company in high tech, high end computing, sales before realizing that it was simply golden handcuffs. The freedom I have now is awesome.

Cash flow is the way to go. I get $25,000 down and average between $500 to $1,000 a door in Phoenix and Mesa buying with Subject To, Wraps and Land Contracts and selling to Tenant Buyers. The Tenant Buyers do all maintenance and repairs, so I have no toilets or troubles. This would work in TN too. It kind of looks like the spreadsheet at the link

https://www.biggerpockets.com/forums/600/topics/58...

@Jason Krawitz

I agree with the posts recommending a W-2 job as a way to keep food on the table and the wolves away from the door, along with making it easier to qualify for a real estate loan when you need one. Of course, if you feel strongly about real estate and know you will succeed, then don't waste your efforts on a W-2 job.

Is there a way you can leverage your previous Corporate America experience with something related to real estate? In the career counseling world, leveraging your experience when you change careers is known as creating a functional resume rather than using a chronological resume.

For example, the inspector hired by my realtor to inspect my as-is fixer-upper house had been a builder prior to the 2008 meltdown. His skill was he could look at such a home and figure out whether it was better to restore it or tear it down and start over (with my house, he concluded it was 50-50 either way). His analysis helped my realtor determine her marketing strategy.

In my case, my "core knowledge" was the electronics industry. I had worked as an engineer, then marketed computer chips to engineers, and finally became a technical writer documenting how engineers and consumers use these products. With my change from line to staff, my stress level was reduced and I had more energy after hours to study investing (stocks). As the Internet became commonplace, I was able to work mostly from home (telecommuting) rather than traveling on site, which meant my hours became flexible. The client didn't care whether I did my work in the morning, afternoon, or evening as long as I met my deadline. Not having to commute every day created a couple more hours of free time (and less stress) to focus on developing my investing know-how.

@Jason Krawitz Sorry to hear that you lost your job. At least it was somewhat expected and it sounds like you have a decent financial footing.

My advice would also be to set aside savings for expenses for a year or two. Don’t “bet the farm” on your first deals as there is always risk of loss with real estate investing. Put some short-term and long-term goals in place.

Also consider where we are in the market cycle. I don’t anticipate another major recession anytime soon but interest rates are likely going up which does have an impact on values.

Partner with an experienced full-time real estate investor when starting out. Not only do you get to learn from their experiences, but you limit your economic risk by having a co-investing partner.

Hope this helps. Good luck!

@Jason Krawitz I will first say that you are looking at it from the right perspective, opportunity.

I can't speak to the success yet of what I am doing, but I quickly transitioned from multi-family (4) units to (64) units under contract.

It is a different niche, but Mobile home parks can be as good as spoken about. The learning curve is a bit different and I by no means have it all covered.

You could make a huge impact with the $425k you are talking about utilizing. You could acquire a turn-key park that is already stabilized or a turn-around park that will require more work and money to stabilize.

No matter what you do, put it to work for you in the most efficient way possible.

All the best!