All Forum Posts by: Kenneth Garrett

@Blake Ramsey

Your numbers in theory are correct. I’m not sure I understood some of the costs. If you bought at 100K with 20K down that is the original purchase. There is the cost of the original loan plus Interest, taxes, insurance while you are essentially holding it. Those are costs to you. Then you have refinance with those costs. Don’t forget you have income once you secure a tenant so that goes to the plus while you are going through the refinance process.

It’s really difficult to recoup 100% of your money at the refinance stage. I generally am able to recoup 80%-90% and I have all my money back in 12-18 months. If you look at cash on cash that’s potentially 100% the first year or 67% the first year and 100% within the first 6 months of year two.

Good Luck.

@Neel Patel

I think your wording is fine. People read what they want to hear. Just like listening you hear the parts you like and disregard the parts you don’t.

In the future, don’t offer a discount. The more wordy a document is the more susceptible confusion will take place. Always be super direct and try to avoid options.

As with all landlords, it is an ever evolving learning process even for property managers. I don’t think being a pm is that difficult. There are times when things become difficult. When those things arise, I call my attorney for the bizarre situation. He doesn’t charge for a quick question and answer.

I like to self manage as well.

@Dustin Taylor

That varies quite a bit from market to market. If I update the kitchen (new cabinets, counters, flooring, sink , etc that is probably 15K-20K if you put some sweat equity in you can probably get it down to $10K-12K.

Bath room everything new, but tub. I generally refinish the tubs as long as there in decent shape. Looks like new when it’s done. 4K-5K. Some sweat equity maybe down to 2500.

All new flooring throughout. I don’t use carpeting. Probably 5K.

Painting 2500.

All this varies by material and type of updates. I like to do my BRRRR's flip ready. It cost a little more, but I can get higher rents and they rent in a few days.

@Nadeem Najam

Typically in the Midwest, this time of year it takes longer to find a tenant. I used Zillow exclusively and found it worked the best. I found at least in my area the MLS was the least effective. Most landlords used other sites and didn't use a broker. That may be market specific.

This time of year it might take 3 weeks or longer. It depends on your unit/house your marketing. You definitely want to stand out from the crowd with better amenities or updated finishes and maybe lower the price to get ahead of the competition. $50-$100 a month can make a big difference. If your property sits unrented for 30 days the reduced $50-$100 a month still puts you ahead at the end of the day depending on your price point. My price for my SFR was $1500 a month or higher.

I used open houses for my rentals and it worked great.

@Reya Ripet

More and more cities are creating licensing regulations for landlords. Some only impact you if you own a certain number of unit’s while others are each year or every other year. The reason for it is simple. Like all new regulations, a few bad situations cause harm to the majority. I don’t care, the cost is generally minor and as long as you keep your property maintained there is nothing to worry about. Maybe we can get rid of the landlords who don’t take care of there properties and it will be better for all of us. I’ve not seen a city start a landlord licensing program and start to charge from $100 one year to $500 the next. Let’s keep all of this in perspective.

@Ryan Cullen

Like anything in life you have to simplify things. You will need to pick a strategy, but it doesn’t mean that strategy can’t change over time. For example, if buy n hold is your strategy pick one or two neighborhoods you want to invest in.

Be an expert in those areas as far as what price point makes a good investment. Run numbers for practice. You can do the same for BRRRR or flips. BRRRR and flips have a lot of similarities during the rehab process. In general, the flip will be a higher level of rehab.

I spent the first year analyzing before my first big step. I thought I would never be a landlord when I started. Flips are sexy. It's what you see on tv. I ended up doing mostly BRRRR projects and some flips. Be open to the strategy.

@Connor Young

If you DM me I’ll send you my agents info.

@Galit Garsiel

I think it depends on the difficulty of the flip. I bought a property cleaned it up and some cosmetic changes, took less then 30 days and sold in less then a week. It was an easy $15,000. I know some people won’t touch things for under $30K, 40K or 50K. Your market is going to drive this, but in general at least $25K-30K would be my goal. If I could I would do these little $15,000 flips each month. It’s way better then spending 90-120 days on a 30K-40K flip. Like all investing, it’s all about the numbers.

@Nathan R Andersen

I've used many private lenders who in my area typically charge around 10%-12%. 5% is not real. Attend REIA meetings, meetups, real estate investing conferences etc. that is where you can meet local private lenders. Feel free to dm me.

@Chaz Curtis

I you go the residential loan route, then 6 months is generally the minimum. If you go the DSCR route there technically is no seasoning requirement, but that is lender specific. I have done many DSCR loans and usually I'm not ready until around 90 days.