All Forum Posts by: Kyle McCorkel

@Cassidy Burns

By EOY 2021

24 wholesale deals (4 so far)

Acquire 3 flips (1 so far)

Acquire 20 rental units (6 so far)

@Steven Hershey

Congrats on your first deal! I’d be interested to hear who the sellers were (although that’s not appropriate to post publicly of course)

@Zachary Mayo

Hey Zach 11 units is far from still being somewhat new! Sounds like you’ve had some good experience.

Is this your full time gig or do you also have a “real job”?

@Nick Gerli

Thanks for sharing, this is interesting indeed.

A few points/questions:

To clarify, is this the bottom 15 (sorted by appreciation) out of the top 100 largest metros by population? If so, important to note this leaves out a lot of smaller metro areas.

Also, as you mentioned, low appreciation is not completely bad. For instance, *relative* appreciation should be considered. For example, my local market (Harrisburg*) is on that list of the bottom 15 but our historical rate of appreciation is more like 2%. So a 5% appreciation for us is CRAZINESS ;)

By the way, Harrisburg is the worst place in the world to invest and you should all stay away. Nothing to see here ;) After all, it’s in the bottom 15 of this list!

I have about 62 pens. They are literally all from title companies and banks. If you can count the quantities you can see who I like working with the most

I’m making a commitment this year to improve the SEO of my home buying website, and I’d like to hear from others who are doing the same. Specifically I’d like to hear what actions you are taking.

We purchased a $100 training course from Carrot and are implementing all the steps that they recommend. We are measuring everything. We set goals for where we want to rank on the top keywords, and we are tracking them daily/weekly/monthly. We are aiming for 1 new YouTube video per month. We are doing pitches for reporters to get backlinks and trying to get at least one new backlink per month. We have goals for bounce rate, organic traffic, traffic-lead conversion rate, and lead-deal conversion rate.

Once we finish implementing all the steps from the training, if we haven’t met our ranking/traffic goals we will continue to refine and we will bring on an SEO consultant for help if needed.

What steps are you taking? Any recommendations from the experts?

@Jenning Yu

PM handles everything. I just had a bad sewer backup in one of my properties 10 minutes away, and I never even saw it. PM handled everything. I’m happy to share a large share of profit with a PM if it keeps me out of the weeds (and the sewage, lol)

Thank you for the very thoughtful post. It takes guts to say that you’re a “lazy and passive investor” but I think it’s good to know yourself and your goals. I also consider myself to be pretty lazy, although currently I’m pretty actively finding more deals and growing my business.

I agree with nearly all your points, but I’ll push back on a few items. The theory that you need to be an active landlord (not hire a PM) to make cash flow, I completely disagree and have the data to back it up. I’ve been investing for 5 years and have always had PM’s. I now have about 30 active units. Last year (2019) my cash flow was $43k. In 2020 it was around $30k. My total cash flow in the last 5 years is around $100k and I’ve never had a negative year. I spend very little time on my stabilized rentals, maybe 5 hours per month.

I’ve had some crazy months and even crazy years where I had multiple expensive evictions, repairs and cap ex, but the overall trend of cash flow is positive.

Many of the rentals were BRRRR's and based on the appraisals on the refi's I have about $150k of forced appreciation.

It sounds like you might be cash flow neutral because you kept refinancing, which I think is a completely fine strategy if you keep reinvesting the proceeds like you did.

I’ve had 3 out of state rentals (turnkey) and two of them were cash flow negative. So I definitely agree with your turnkey/PM comments. I did sell two of them and captured a significant amount of appreciation to make them an overall break even investment. Those two are my worst two properties by far.

@Stephen Akindona

Great feedback, thank you

My partner and I have completed BRRRR's several times - almost a dozen now. However, every time it was a completely vacant single family house or 2-3 unit building. We are working on getting a 2 unit (1 unit vacant) and 4 unit (no units vacant) under contract. We want to BRRRR the properties. All the occupied units are distressed/outdated and rents are severely under market. They are paying $450 and the market is $550 in current condition, and after being renovated they should rent for $700.

I should also mention literally ALL of the tenants do NOT have leases!

Can people please share strategies for this situation? Especially considering the current eviction environment.  Have them sign leases on day 1? Maybe 3-6 month leases? 

How can we gracefully, professionally and respectfully get the existing tenants out so we can rehab the units?