All Forum Posts by: Joe Cassandra

These posts keep coming up. 

"Will tenants skip out on April's rent?" They didn't. 

"Will tenants throw a rent strike and not pay?" Very few followed through. 

If you want to find an extremist view online about [insert topic], you will find it. 

The "we hate landlords" fan club is loud, rude and obnoxious, but actually represent a small minority of renters in America. Of course, the media loves shining a spotlight on these folks to rile up the bases. 

For the most part...

- Most tenants just want a place to live and be left alone. And they'll pay to get it. 

- Most aren't sitting at home scheming up ways on how to screw over landlords. They're watching Netflix.

You're learning about the #1 rule in real estate (and one I've broken before and lost money)

...

Get a great deal.

...

Unfortunately, in most markets in 2020, great deals aren't hanging out on the MLS waiting to be picked up. You have to dig ferociously for them.

Any house in America could run at a cashflow positive clip if you lock it up at an amazing price. 

...

I say this half-joking making a playful jab. 

But you're really asking: "How do I find a great deal?" 

You're after what all investors on here are after :)

:)

Was getting my haircut before all this COVID crap...

Hairdresser is making conversation, asks what I do. 

I tell her I write for a living, I have clients and write copy for them. On top of that, my wife and I invest in RE. 

She perks up and goes: "Oh, I'm a realtor. I can help you look for some houses to invest in." 

Meanwhile --- I ask her to just clip 2 inches off...

She takes 3...

We've seen this for awhile in North Atlanta. Homes over $400k will tend to already sit for a couple weeks before they get any action. 

Homes $325k and down (if in good condition) will go in the first week or two. 

Starter homes will likely keep staying hot as the inventory is so low and affordability is getting nuts for the majority of wannabe homeowners (making sub $75k per year). 

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In terms of buying expensive houses and praying for appreciation...

You're playing a dangerous game there...

What happens as your taxes go up as a non-OO...and your holding costs start mounting...

What if it takes a couple years for prices to ever go up. 

What if they don't go up? We've hit the top of the market and it's down from here?...

You're better off putting all that money into the stock market. At least it's liquid.

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Most expensive homes are hard to cashflow rents. Maybe as an Airbnb, but most people making enough to afford your high rents are likely buying their own home.

On BP? The rental calculator. Very thorough and easily spits out COC and ROE over time.

Off BP? Propstream. Allows you to view how much someone probably owes on a mortgage, recent bankruptices, liens, where they're financing their mortgage...and it gives estimated values that are pretty darn good (way better than Zillow) and has comps you can pull up too.

That's all you need. THe painful part is sorting through the garbage. Some of the folks may be overextended on their mortgage, have $0 in equity, etc. 

Better to use a service like Listsource or Propstream so you can filter those out upfront.

You can, but it'll still count against your debt-to-income. The bank will need to know the terms of the repayment as informal as the transaction maybe if you get it from a relative, etc.

I think it could work...but be ready for an onslaught of hate from the people who are freaked out by you getting so close to the house :). 

We get enough hate calls from direct mail...now, putting something on their front porch will set off more folks.

If you're Driving for Dollars, just cough up the $49/month for DealMachine. 

Else, you'll need to skip trace all the names, put them in a spreadsheet, call up a mail house and go from there. 

Dealmachine does it all from their app. 

Plus, 80 names isn't enough. You need probably 200-300 for it to be worthwhile. Response rates average 1%

I just had this convo about a rental. Decided I'd rather rent it out now rather than lose another month in holding costs. 

So the ROI being 7-10% probably isn't accurate, as you'd likely have another month of holding costs.

You said 4 weeks for cabinets. Then, you have to wait a couple weeks likely for a new tenant to start the lease (unless you nab a signed lease during reno). 

So your ROI is likely 0% the first year.

If your mortgage payment is $800 (i'd guess), you'd make $0 in extra income in holding costs. 

Oh and utilities you'd be paying too.