All Forum Posts by: John Williams
John Williams has started 63 posts and replied 395 times.
Post: Ready to learn and grow
- Property Manager
- Clarksville, TN
- Posts 439
- Votes 208
Welcome to the party! What is your goal in real estate?
Post: Advice for first property
- Property Manager
- Clarksville, TN
- Posts 439
- Votes 208
Look at "sub" markets of major metros.
Clarksville, TN has a great balance of cash flow and appreciation and strong fundamentals. We receive a lot of the benefits of being near a major city (Nashville) but not high prices.
Post: Im looking to move out this year and house hack my first property
- Property Manager
- Clarksville, TN
- Posts 439
- Votes 208
Quote from @Joshua Piche:
Im looking to move out this year and house hack my first property
I’m 24 debt free still living with my parents . With the money from my savings and stocks I have about 100k .
I know LA is expensive so I’m not really sure what/ where I could even afford. I’ve been wanting to speak with someone about that but I’m not sure who would be the right person to ask ( real estate agent , broker etc) .
Lastly this is my first post here so apologies in advance if I posted this wrong or in the wrong place
House hacking is perhaps the best strategy to get started in real estate. Start by talking to a lender to determine how much you can afford (and that you can qualify for a loan).
Next, analyze deals with an investor-friendly agent.
Post: Nurse to property management company
- Property Manager
- Clarksville, TN
- Posts 439
- Votes 208
Some states may be more enjoyable than others when it comes to running a PM company. It is a great business as long as you have some level as scale.
Post: Growth Markets in 2025 - Where are you investing?
- Property Manager
- Clarksville, TN
- Posts 439
- Votes 208
I like Clarksville, TN because of the strong fundamentals, minimal volatility, and balance of cash flow and appreciation opportunities.
Post: Is Relying on Cash Flow Feasible?
- Property Manager
- Clarksville, TN
- Posts 439
- Votes 208
You'll never retire from flipping because that is active income. If you stop flipping, your income stops. Unless you are turning the profits into buy-and-hold rentals of course!
Cash flow is still possible, just more difficult than it was a couple of years ago! By buying down your rate and placing a larger down payment, you can still achieve true cash flow.
Post: How to find the best Real Estate Agent
- Property Manager
- Clarksville, TN
- Posts 439
- Votes 208
Quote from @Monish Anand:
I own 3 SFH rentals currently but am looking at new markets and so I want to meet the best real estate agents at the markets I'm considering. In the past I would do Zillow Real Estate agents, and it was always pretty terrible, average real estate agents. The one agent I met who I liked was at an open house. What do you recommend on how to find the best real estate agents in a new area?
I want a real estate agent with a hustler's mentality, who knows the neighborhoods, studies appreciation and deal analysis already, understands short-term rentals, and is potentially looking to be a scalable partner with me. And I'm looking in 3 or 4 different markets in the country.
If you are able, attend a local RE meetup and connect face-to-face with agents there. Pick their brain about investing to ascertain their knowledge.
If not, try joining local real estate groups on Facebook and asking for a recommendation.
Another good strategy is to connect with a local property manager that does real estate sales, or can refer to an investor-friendly agent.
Post: Downside of the 1% rule...
- Property Manager
- Clarksville, TN
- Posts 439
- Votes 208
Quote from @Peter W.:
Quote from @John Williams:
Quote from @Peter W.:
Quote from @John Williams:
Here's why I don't like the 1% rule...
A buy-and-hold investor should think long-term.
The 1% rule doesn't matter as much if you have a 5-10 year investing horizon because it does not take into account appreciation or other benefits of holding (tax benefits, etc.)
The 1% rule stops a lot of folks from getting started.
Think big picture.
Consider all the benefits of the investment over an extended period of time and get started! Take action! You'll thank me later!
Would you buy 5 houses in Clarksville, which rent for less than your mortgage payment? No, that way leads to a failed investment. You need sufficient rental income to cover your expenses, or you bleed money. And given that, in a major city, there are hundreds of houses put on the market weekly, you need a method to efficiently screen properties to make sure they won't bleed money before you spend time analyzing, touring them ect. We've all had good appreciation lately, but the markets seem to be much flatter than they were. Markets stay flat for five years and you've been bleeding cash then what?
Now you might be like Joe, know rents for a couple of neighborhoods and can quickly estimate expected cash flow from properties pretty quickly (that's what I do as well) but you still need a screening rule so you invest minimal times on properties you will never put an offer in on. The 1% rule is a simple rule which is easy to calculate and describe.
Would I buy the 5 homes with negative cash flow? It depends! If you budget the negative cash flow over the course of the hold period and have reserves set aside to fill the gap, there is no problem (assuming your investment meets your target appreciation rates - I understand there is no guarantee there).
For example, you can buy 5 new construction homes at great price points in my market that would be perfect for this strategy. They certainly do not meet the 1% rule and they may be slightly negative cash flow. However, you'll minimal capex/maintenance/vacancy and the overall return after 5 years could be very strong.
I buy things with 0 excepted cash flow after maintenance, vacancy, and capex savings. Ended up with negative cash flow due to replacing an air conditioner. I find
Problem with the stock market is that it's outside your control to a large extent (same as betting on appreciation) and you don't get the tax benefits and leverage. You have a good point about the hassle factor though.
Post: Maximizing Returns on Your Rental Property
- Property Manager
- Clarksville, TN
- Posts 439
- Votes 208
Quote from @Reed Rickenbach:
John - as long as you are still following strict screening criteria I agree for single family. For multifamily or commercial, the rental rate impacts the value of the property. Sometimes worth waiting in that case.
Good point, if you have plans to sell in the near future, could be better to wait. But if you're holding long term with no plans to sell in near future - better to get them leased up!
Post: Downside of the 1% rule...
- Property Manager
- Clarksville, TN
- Posts 439
- Votes 208
Quote from @Peter W.:
Quote from @John Williams:
Here's why I don't like the 1% rule...
A buy-and-hold investor should think long-term.
The 1% rule doesn't matter as much if you have a 5-10 year investing horizon because it does not take into account appreciation or other benefits of holding (tax benefits, etc.)
The 1% rule stops a lot of folks from getting started.
Think big picture.
Consider all the benefits of the investment over an extended period of time and get started! Take action! You'll thank me later!
Would you buy 5 houses in Clarksville, which rent for less than your mortgage payment? No, that way leads to a failed investment. You need sufficient rental income to cover your expenses, or you bleed money. And given that, in a major city, there are hundreds of houses put on the market weekly, you need a method to efficiently screen properties to make sure they won't bleed money before you spend time analyzing, touring them ect. We've all had good appreciation lately, but the markets seem to be much flatter than they were. Markets stay flat for five years and you've been bleeding cash then what?
Now you might be like Joe, know rents for a couple of neighborhoods and can quickly estimate expected cash flow from properties pretty quickly (that's what I do as well) but you still need a screening rule so you invest minimal times on properties you will never put an offer in on. The 1% rule is a simple rule which is easy to calculate and describe.
Would I buy the 5 homes with negative cash flow? It depends! If you budget the negative cash flow over the course of the hold period and have reserves set aside to fill the gap, there is no problem (assuming your investment meets your target appreciation rates - I understand there is no guarantee there).
For example, you can buy 5 new construction homes at great price points in my market that would be perfect for this strategy. They certainly do not meet the 1% rule and they may be slightly negative cash flow. However, you'll minimal capex/maintenance/vacancy and the overall return after 5 years could be very strong.