All Forum Posts by: Leo Watts

@Russell Payne

Long term rentals get a lot closer to the idea of “passive income” often touted here. STRs are a business. Bad cleaners, guests trashing your house, etc etc.

@Ila Flannigan

Can you give a little bit more info on what you’re looking for? Loopnet has a decent list of commercial properties. Door knocking / cold calling would be my approach to snag a deal on a commercial space struggling to retain tenants right now.

@Terry Dunlap

I would try to contact the owner directly. You may find that many other investors have already contacted them though.

@Troy Biggham

Could your break down the rental and debt service / recurring costs numbers?

@Nick Tran

I have a good attorney. Shoot me a message.

@Snehann Kapnadak

What price point are you targeting? How much cash are you putting down? FHA or conventional? Where are you looking to invest?

I think running the numbers always helps to clarify how good a deal is. You will live there as a primary? Long term equity play?

Condos are obviously hurt by HOA for cash flow, but can sometimes make sense. You could get a 2 bedroom and rent out another while you live there then rent the rooms individually upon moving out. Condos generally lag in appreciation.

@Cassidy Burns

Thanks for sharing. Definitely a good strategy for acquiring pricey property on the relative cheap. Did she have a very high income to qualify? Are you seeing good house hacks in the 600 range?

The big number you see tossed around here and other places is the 1% rule. That generally lets BRRR work. In DC and most of NoVa and MoCo you're closer to the .5% rule, with a $500,000 house getting $2500 a month in rent. That's sort of the opposite of what you want on BRRR, though breaking down your rental by room may bump that number up but introduce more volatility.

I think there are definitely close to 1% numbers in PG neighborhoods, though not the trendiest ones.

Running some preliminary numbers, it looks like there are properties in Ann Arundel just south of Baltimore that would perform fairly well as rentals. I like that area anyway for its proximity to the Chesapeake and Baltimore.

This home is going for 230 and a similar size home nearby recently rented for $2600  https://www.homesnap.com/MD/Gl...

I see a fair bit of Glen Burnie deals posted by wholesalers. Would be worth it to get in contact with a few so they're on your radar, as they can be a good source of discounted properties (though not always) that can make the BRRR numbers work.

It’s also worth noting a lot of investors bought their rentals 5 or 25 years ago. It’s why you’ll sometimes see a 2 million dollar DuPont Circle row house renting for 5k a month, as the landlords bought it cheap a long time ago and only have requiring maintenance (often deferred) and property taxes to pay. 

@James Webber

If someone has remodeled recently that’s bad. No freshly painted doors. No expensive landscaping. Shutter paint colors circa 1970. Ideally no signs of kids (swing set) etc as they are normally more settled. You look for the old house that money hasn’t been invested in lately. Older roofs with leaves piling up.

Interesting analysis. It seems like you’re saying the working class spots are the place to invest in, not the trendy “up and coming” neighborhoods one often hears referenced.