All Forum Posts by: Jon Kelly

@Ryan Copeland Of course it's worth it, if the price is right. 

Don't be afraid to overpay for property management. You don't want to go with the cheapest property management option in a class C neighborhood

@Sean McKee Can you call an electrician(s) for an estimate to upgrade and they should be able to tell you if it's necessary

@Kyle Johnson $445k asking price for rents of only $2,625/mo is a tough deal to get behind. It sounds like you need to double check market rents (I would suggest speaking with a local property manager or agent), but increasing rents from $2,625 to $4,600 sounds like a steep increase. If $4,600 is market, why isn't the current owner increasing rents? How much rehab is needed to increase rents? How long will it take to increase to $4,600? 

This sounds more of an appreciation play instead of cash-on-cash. If you strongly believe in the Phoenix market and have extra cash maybe go for it, but I imagine there are far better options out there. 

@Kayden Mann Sometimes it's hard to know what you need until you have an actual opportunity in front of you. Most time the added time pressure helps! 

I would focus on finding a property and in the background network with property managers, contractors, lenders. Again, if you find the right agent they will have recommendations for you. Don't let a "lack of superstar team" slow you down 

@Kayden Mann Taking action is a great way to build credibility and organically build your team. For most investors it starts with finding an agent. Your agent will help you define your criteria and show you deals. After you start making offers you can network with contractors and/or property management companies. 

I wouldn't worry too much about building a team until you are very close to closing on your first property. 

@John Brooks Why ask the question after you already purchased your home? If you believe real estate is a great way to build wealth and you already purchased your own home, then focus on purchasing your first rental. 

It doesn't matter which is first. Define your goals. Set your criteria. Run the numbers. Take action 

@Brendan VanDalinda The easiest ways to get started in real estate with little or no money are: 

1. start wholesaling (or become an agent) 

2. house hack - if you live in the property you may qualify for a 5% down payment. 

3. Partner with a local investor and find ways to add value without contributing capital (e.g. repairs, collect rent, analyze deals, research new markets, take pictures of properties, etc...) 

@Matt Miller  I completely agree with @Will Fraser. First, define your goals. Second, take action towards accomplishing them. Try to be specific about the goals (# of properties, # of doors, cash-on-cash return, monthly cashflow, "X" # of employees, etc.) 

If your goal is to buy another property to live in for 2 years while fixing it up, you need to determine how much will it cost in your market? Will the $70k + future income be enough to cover a 20% down payment and future repairs? If not, I'd consider refinancing your current property for additional funds. If $70k is enough for 20% down and future repairs you may want to refinance anyway and use those funds to purchase your 3rd property.

You'll qualify for a conventional loan on property #2 because it will be your primary residence. Property #1 becomes an investment property 

@Cameron Riley You should cut if off after you have an appropriate amount of well qualified applicants. You only need 1 well qualified tenant... 

If 90% of your applicants are not qualified then make your application requirements clearer (# of references, minimum income, length of employment history, etc.)

If you are truly getting 20-25 well qualified tenants then increase your rent by 10-20%

@Ryan Copeland Did you agree on a price? Seems like the first thing you need to do is agree on the price, then you can draft a Purchase and Sale agreement. No need to send an "offer letter" or purchase and sale agreement if you can't agree on the price. Go to any local title company and their lawyers will draft a purchase and sale agreement.