All Forum Posts by: John McDonald

If you're considering flipping, check out the neighborhoods northwest of St Louis, especially the Pine Lawn area. That area is going through a revival and there's lots of opportunities for investment. 

Good luck with your journey. 

The cap rate is your key initial indicator for "profit" but when you evaluate properties, bear in mind that many times the current expenses are inaccurate for a variety of reasons, the most likely of which is deferred maintenance which will come back to bite you later. You'll find that landlords play all kinds of tricks to ask top dollar for the property. 

Unless you have the capital to cover those unforeseen expenses, your best bet, as a new investor, is to buy a new property. Although, those will likely have much lower cap rates, and for reason, they have very low maintenance which makes them more predictable investments. Couple that with solid tenants and you have a winning formula. Although, you can expect for the investment to pay for itself in about 10 years vs 5. 

Once you have some cash reserves and feel a little more confident in your abilities, then go looking for higher cap rate properties that will provide a higher return. I have a good friend who's turning millions a year in fixer apartments, nationwide. He has a formula that works and just applies it to properties that meet his criteria. Once you have some experience, you can use the same approach, if you wish.

Good luck on your journey. 

Cheers

Lenders user a variety of data to determine the min down payment but, in general, unless you have a steller track record with the bank you'll be required to put 15-25% down on the property. Banks do not like to hold high LTV investment properties as they have a much higher risk of default when the economy goes south.

Good luck

This will be short lived, it's a minor correction. Home prices put buying out of reach for many Americans and gen Z is choosing to rent over buy at record rates in part because they prefer a more nomadic lifestyle.

Hold your ground and rents will begin to tick back up in 2024.

Cheers,

@Aaron Bard Congratulations on your first deal! It gets better from here on out. 

Good luck. 

We've been playing with a new toy lately and I'm wondering if any anyone else has any experience with dry ice blasting machines. We're not sure that it's worth the money, some of the best ones are $50k. Thoughts? 

https://www.reddit.com/r/oddlysatisfying/comments/12bldo1/dr...

Looks to me like booking.com is an American company based in Norwalk, Connecticut. They're reachable with a lawsuit if you so choose. You can also do all kinds of damage on social media, especially given that their parent company is public. 

Good luck.

@Abner Peña, welcome to BP. You're in good hands. While this is the fix and flip forum, you might also try posting to a more general forum to see if you can get better reach for investors looking for wholesalers. 

You'll get a lot of advice, but ultimately, each investor is looking for something different. Get to your know your investors, find great deals and provide due your due diligence and you'll print money. Good wholesalers are hard to find. 

Good luck with your journey!

Last year we saw a drop in activity across nearly every market. We anticipate a slow pull back to 2022 numbers over the next 12-16 months. We're hearing that a lot of investors are concerned about the resell timeline on their flips and they don't necessarily want to hold as most of the tier 1 investors are using someone else's money. 

Short of some unforeseen event, H1 2024 should be stronger than 2023 but the market may pause as we work through elections. 

Cheers,

Austin has a fantastic future. There's hundreds of billions being poured into the tech sector and, long term you'll likely make out very well. If you can afford to eat the $400/month in the short term given that it's a new building with low maintenance. The market will bounce back shortly and rents will jump.

Cheers