All Forum Posts by: John Rubino

Welcome to BP Iris....Great website that I know you'll love (like I do). I am in the Atlanta market. Just listed a property in the Underwood Hills neighborhood. I plan to do many more properties there with several businesses we currently provide capital to. Once you are up and running and are looking for potential capital to fund a property send me a note.

Best of luck,
John Rubino

Are you interested in offering them a Lease with the option to buy

I mean 20K profit.....Investment is $50,000 so profit would be $20,000. You should always shoot for 20% profit from your original investmenwent.

@Richard White: I'm not a SME in the Charlotte market, but I'd think$100-$200 a month is a reasonable PM fee.

@Chris Duzan: If you are within a reasonable distance of the property I'd recommend managing it yourself.

I had a new construction investment house within 10 minutes from my primary residence a few years back and I was over there every day. Not only to see how things were going and to talk with the builder....but because it was also a lot of fun seeing the house progress towards its finish.

Jose,

Got to agree with the group. Need more info about the area (i.e., job market, schools, income levels, low crime, entertainment) before seeing whether this makes sense. Your numbers may work but if its not a good and appealing area, your not going to get an attractive offer on the property. Some good points raised on the scope of work. Do you have a contractor? realtor? This would be a must since your contractor will give you an idea of the rehab costs (if he or she is someone you can trust) and your realtor will provide Comps. I wouldn't trust Zillow, Trulia, or any other online estimates unless it is something that "sold." Make sure you give yourself at least a 20% margin for profit. At your 35K (not including the rehab, realtor costs, closing costs, and marketing expenses) you should look to make $7,000 (net). I'd work my numbers again to make sure the investment isn't more like 50K (rehab and other costs), in which case you should shoot for at least 20K.

Best of Luck,
John Rubino

Chris,

I'd go where the demand is. I live in Virginia and I am in the Maryland, Virginia, DC, Atlanta, and Carolina markets. Don't be scared to venture out. If the market is right and you know what to focus on (i.e. schools, entertainment, jobs, low crime, up and coming area) go for it. Do your homework but don't let distance scare you off.

Good luck,
John Rubino

Brian, breaking even is not a bad thing. Your equity is growing and as interest rates creep up you should see a bit of a jump in the rental market meaning you might be able to raise the rent a bit. Have you thought about doing a lease option to buy?

Something to think about.

Good luck,
John Rubino

Todd....a golden rule I believe in is to never use the equity in one property to support another / others. Tough to take equity out of a property to use on others especially given the fact that you have a good situation at this time wit your properties.

Good luck,
John

Shera,

I'd go with Tenant B. However, I'd provide some incentives to make sure he isn't as lazy (as it sounds from your background on him) paying the rent, like:

1) Offer a non-refundable payment up front and mention you'll put this total amount (or a percentage of your choosing) towards the agreed to lease-option to buy purchase price of the home at the end of the rental term if he makes all his rental payments on time. Also offer a $100-$200 a month rental credit towards the purchase price if he pays on time. I would also stress to him that getting that credit score up will really help him with financing on the property when he applies for a loan. These motivators should help.

Best of luck,
John

CON'T...

a 3-5 year tour down there and the way the owning and selling has been down there, rentals are your best bet.

2) The island is better for single people and the southside is better for families. CC military has several students going through flight training. Many of these student aviators pair up and rent out in the island. See if you can get onto the base and over to the housing office to put some of your properties on their displays for potential renters.

3) Get into Kings Crosiing....All military want a home there. Highly coveted neighborhood with a great school nearby (Mireles Elementary).

4) Get a good realtor.....Look up Donna Byron...She sold our house.....Mention my name and tell her you know me "through mutual contac. This way you have "an in:.  
5) Don't expect to make a killing unless you build an inventory....Volume is better than one-si...two-si....

Good luck and keep me posted.

Regards,
John