All Forum Posts by: Jonathan Greene

The most important thing for you to learn as a wholesaler is repair costs. If you are able to lock up deals and you mess up the repair estimate (like most wholesalers), no one is going to buy it and you will be buying too high. If you build a buyer's list and you send them deals where the repair costs aren't close, you will lose them. Everyone says to find properties and build a buyer's list, but neither matter if you can't calculate the repair costs and also get access to a friend or colleague who has MLS so you can do a proper and real ARV (the other part where all wholesalers fail). Good luck.

If you pay $300,000 for a property and it rents for $3,000, that is 1%. But the 1% rule is an old metric. Now.75% would be very good in a lot of markets although you can hit the 1% in some markets. You have to watch out for properties that hit 1% or higher, but have cap ex and tenant issues.

If you are interested in turnkey properties in Memphis, look up MidSouth HomeBuyers. They are one of the oldest and most vertically integrated turnkey companies in the country. And they are super nice. Ask for Liz Nowlin.

I don't think Danbury is a big house hack market, but I could be wrong. Yes, long-term rental clients sometimes don't want short-term rental next door to them, but you are the owner and landlord and set those expectations up front so it's on the table before they lease. Are you saying you want to STR rooms in the unit you are living in? That's not a great strategy for Danbury. If someone is coming to Danbury for STR, I don't think they are going to want to share bathrooms and kitchen. You have to know the market before you build a plan and I don't think this market supports your intended plan.

Look for mixed-use properties with a Main Street vibe or location. Mixed-use are retail and residential. Usually retail on the ground floor and residential up top. You can also double hack these if you have enough units and live in one unit and use one unit for your business, but of course that decreases your cash flow but increases your usability.

You can also use an FHA loan to get a mixed-use property with only 3.5% down if the residential square footage if more than 50% of the total square footage. It's one of the best hacks in the game.

I agree that pricing a rental too high is a classic mistake than can make it sit, but don't you think encouraging landlords to rent quick will make them compromise on the vetting of the tenants?

The idea of the property has a lot of potential. Is it a typical inn/bed and breakfast setup with all the rooms inside of a main house? If so, you can't really pivot to short-term rentals there and have to capitalize on the inn vibe and in-house services.

My major question is why is the current owner, who bought it after it sat vacant for twenty years, looking to sell you the problem they can't fix? 99 percent of the time someone is selling a project mid-construction or after gut, it's because they already spent too much on it and know it won't work.

I like both of your ideas so I would look for the single where an ADU is permitted or one with a dump ADU to renovate (that's best) and balance that against the purchase of a 2-4 unit. Since you are new to the market, you can look at what the top rent pulls look like and cater accordingly on the design.

You always want to build relationships with contractors, but that takes time and you always need a solid bench, just like in basketball because some days your starting plumber just doesn't show up and you need to bring in the backup.

The rates are the rates and they aren't going way down soon so it's just part of a different metric to evaluate in your new market.

Good luck!

Those companies you asked about are more for deal finding and direct contact to off-market sellers, is that what you are looking for? Or are you looking for more market analysis tools? For STR, AirDNA is the most popular option of course, but the pricing model per city is rough (if it's still like that). STR Insights is another option for that.

I haven't used REI Nation, but I have done due diligence with two turnkey companies that I am on the waiting list for properties that work for me. Rent for Retirement (@Zach Lemaster) specializes in new build surplus from major home builders, many in Texas. MidSouth HomeBuyers specializes in rehabs and a vertically integrated model in Memphis and Little Rock. Look them up and compare as you go.