All Forum Posts by: Logan Winn

Pros for BRRRR in Wichita:

Median home price: The $180k-$220k range can be a sweet spot for BRRRR. You can potentially find undervalued properties, rehab them efficiently, and achieve good rental income.

Decent rents: $1000-$1600 rents provide a strong foundation for positive cash flow after factoring in rehab costs and ongoing expenses.

Cons to consider:

Market competition: Investigate how many other investors are using BRRRR in Wichita. High competition can drive up purchase prices and reduce available deals.

Here's how to decide if BRRRR is right for you:

Run the numbers: Use rehab cost estimation tools (like those mentioned in J. Scott's flipping books) alongside projected rents and vacancy rates to see if the numbers work for your target profit margins.

Analyze rehab costs: Wichita's construction costs might be lower than coastal areas, potentially increasing your profit margins.

Factor in holding costs: Consider how long it typically takes to rent properties in Wichita. Longer vacancies can eat into profits.

Alternative Strategies: While BRRRR can work, Wichita might also be suitable for:

Buy and Hold: If rehab costs are high or competition is fierce, focusing on long-term rentals with good cash flow could be a simpler approach.

Remember: Talk to local real estate agents and property managers to get a realistic picture of rehab costs, rental rates, and vacancy times in Wichita. This will help you tailor your strategy for success.

Good luck!

Hi J, in "Flipping Houses" series, you emphasizes the importance of accurate rehab cost estimation for successful fix-and-flips. How can these cost-estimation principles be leveraged to create a more robust financial model for long-term rental property investments, considering factors like ongoing maintenance, capital expenditures, and market fluctuations over time?

really appreciate you taking the time to answer as many forum questions as you can!

Staying patient is KEY, great list Justin! Other tips I might consider could be Expanding your search area: Look beyond immediate local markets and explore options in up-and-coming areas or cities with diverse economies. Network with other investors. Attend real estate events, join online communities, and connect with experienced investors to find off-market deals or gain insights. Consider value-add opportunities. Look for properties that require minor renovations or improvements to increase rental income and property value. Develop strong negotiation skills. Be prepared to negotiate on price, terms, and repairs to secure a favorable deal. Lastly, build a team of experts. Partner with a qualified real estate agent, property manager, and legal professional to assist you throughout the investment process.

By considering these points alongside the existing list and seeking professional guidance, you can increase your chances of finding a suitable multifamily investment even in a competitive market.

I'm looking into the following states at the moment:
Texas (think Austin, Dallas, Houston): It's booming, with tons of people moving in and landlord-friendly vibes. Florida (Orlando, Tampa, Jacksonville): No state income tax, and everyone loves the sun, making it great for rentals. Georgia (Atlanta): Affordable, growing fast, and always in demand. North Carolina (Charlotte, Raleigh): Jobs are on the up, and so are people moving in, plus the prices are right. Arizona (Phoenix, Tucson): Hot weather, hot market. The population's booming, and so is housing demand. Ohio (Columbus, Cleveland): Offers more bang for your buck with steady rental needs, thanks to schools and healthcare. Tennessee (Nashville, Memphis): Music, culture and a tax-friendly scene attract lots of renters.

Hope this helps, Alice!

-Logan Winn

Hey Nathan, welcome to the exciting world of real estate wholesaling! Your question about getting your first contract and estimating rehab costs is a common challenge for beginners, but with the right approach and resources, you can certainly overcome it.

Getting Your First Contract:

Networking: Connect with local real estate investors, agents, and other wholesalers. Attend real estate meetups, join local Facebook groups, and participate in online forums like BiggerPockets.

Marketing: Utilize direct mail, bandit signs, online advertising, and social media to find distressed properties or motivated sellers.

Education: Continue educating yourself through books, podcasts, webinars, and courses about wholesaling and real estate investing.

Persistence: It often takes time and numerous attempts before landing your first deal, so persistence is key.

Estimating Rehab Costs:

Learn the Basics: Understand the common elements of a rehab, including structural, mechanical, cosmetic, and landscaping work. Knowing the scope of work is crucial.

Software Tools: Consider using software tools like Flipster, House Flipping Spreadsheet, or Rehab Valuator to help with cost estimations.

Network with Contractors: Build relationships with local contractors. They can provide estimates or even accompany you to property visits for more accurate rehab cost assessments.

Educational Resources: Books like "The Book on Estimating Rehab Costs" by J Scott can be incredibly helpful. Also, online resources, videos, and courses specifically focused on rehab cost estimation can be valuable.

When presenting a property to potential buyers, it's important to provide as accurate an estimate as possible but also be clear about the uncertainties involved. Your buyers will appreciate the honesty and are likely to do their own due diligence anyway.

It sounds like you're in a bit of a tricky situation with your parents' old Victorian house. Selling a property that requires significant work can indeed be challenging, but there are several avenues you might consider exploring:

Local Real Estate Agents: A local agent with experience in selling fixer-upper properties or historical homes in your area could provide valuable insights. They can help assess the market value of the property, considering its condition, and suggest the best sales strategy.

Direct to Investors or Wholesalers: While 'we buy ugly houses' companies often offer below-market rates (as they typically look for deeply discounted properties), reaching out to local real estate investors or wholesalers could be a worthwhile option. These professionals often look for properties like yours to renovate and flip or hold as rentals. You can find them through local real estate investment groups or online platforms.

Auction or Estate Sale: If the property has unique characteristics, especially being a large, old Victorian, it might attract specific buyers looking for such properties. An auction or an estate sale might bring in buyers interested in its potential or historical value.

Market it As-Is: Listing the property on the open market as-is might attract DIY enthusiasts or investors looking for a project. While this might not fetch the top dollar, it could result in a quicker sale at a reasonable price.

Consider Renovation Loan Options: If you believe the house has significant potential value once fixed up, exploring renovation loan options like an FHA 203(k) could be an option. These loans allow buyers to finance both the purchase and the cost of repairs.

Creative Real Estate Solutions: Sometimes, creative solutions like owner financing or lease options can attract buyers who might not be able to purchase outright but are interested in a property like yours.

It's important to weigh the costs and benefits of each option. While selling as-is might bring in less money upfront, it saves the hassle and expense of repairs. On the other hand, investing in some repairs (if financially feasible) might significantly increase the property's market value.

Remember, each property is unique, and what works for one might not work for another. It's often beneficial to consult with a real estate professional who understands your local market to help guide your decision.

Best of luck with the sale!

I used to sell Salesforce to REITs across the United States and this is what I've learned:

For your needs - a CRM with a power dialer and SMS capabilities - there are a few options you might consider:

Podio: This is a popular choice in the real estate community, especially for wholesalers. It's highly customizable and integrates well with various tools, including phone and SMS services. You can use third-party apps like SmrtPhone or CallRail for the dialer and texting functionalities.

Salesforce: Known for its versatility and extensive customization options, Salesforce can be a powerful tool for your business. It can integrate with a variety of telephony systems for power dialing and SMS services, though it might require a bit of setup and possibly additional costs for these integrations.

REI BlackBook: This is a real estate-specific CRM that's quite popular among investors and wholesalers. It includes built-in tools for dialing and mass texting, which could be exactly what you're looking for.

Zoho CRM: Another versatile CRM that can be customized to fit real estate needs. Zoho has an in-built dialer and can integrate with SMS services, offering a good balance of functionality and ease of use.

Each of these CRMs has its own set of strengths and potential limitations, so I'd recommend taking advantage of any free trials or demos they offer. This way, you can get a feel for which system aligns best with your business process and workflow.

Hope this helps, and best of luck with your wholesaling endeavors!

Hey, BiggerPockets community! I'm Logan Winn, and I'm thrilled to be part of this network. After a fulfilling career in corporate sales, I've leaped into my passion, founding JG Academy Tracy, a jiujitsu gym in Tracy, California. I'm also getting my real estate license in California, gearing up for my next big goal: owning a multifamily property by the end of 2024.

As I embark on this journey, I'm keenly aware of the challenges ahead, especially as a newcomer to real estate investment:

1. Capital Allocation and Financing: As a new entrepreneur with a recently established jiujitsu gym, I may face challenges in allocating capital efficiently between my business and real estate investments. Additionally, securing financing for real estate purchases as a new business owner could be more complex, requiring careful planning and strategy.

2. Market Analysis and Deal Evaluation: With his background primarily in sales and martial arts, I will need to develop skills in market analysis and deal evaluation specific to real estate. Understanding the nuances of property valuation, rental market trends, and investment return calculations will be essential for making informed decisions.

3. Regulatory and Legal Understanding: I will also need to navigate the legal and regulatory aspects of real estate investment in California. This includes understanding landlord-tenant laws, zoning regulations, and compliance requirements for multifamily properties, which can be quite complex and vary significantly from region to region.

These challenges, while significant, present opportunities for growth and learning in the realm of real estate investment. With dedication and the right approach, they can be effectively managed and I am looking forward to taking them head on with the support of this amazing community!

Thanks, everyone!

Logan Winn