All Forum Posts by: Mike Malfitani

However for most first time investor buying the cheapest rental in a given market is usually pretty risky frankly.. and those assets are more appropriate for locals who can stack them up and own 10 to 50 of them.. and run them as a business.

I know its hard to fathom that on the west coast thinking anyone can own 10 to 50 homes.. but in those markets its quite common.

the reason is Morris/Oceanpoint is only paying 5 to 10k for them in the first place and doing bear minimum in getting them ready to rent.. and from what others have said they are doing NOTHING.. :( .. whereas say in west coast markets you can't buy any property that cheap even a beater is 100k.

now in PHX you can buy 30 to 60k homes but they are in some pretty tough neighborhoods.. so why would Indy be any different at that price point.. ?

Indy is a great place to invest in the 75 to 125k range in my mind.. except don't get sucked into duplex in low value areas those are really rough..the bottom line Is you need a renter paying at least 750 per unit.. anything lower increase your risk profile by a bunch.

Jay, perhaps I mispoke earlier. I'm not against out of state properties, I'm just not going to work with Morris Invest.

I'm first going to concentrate on my local market to see if there is anything here, if not I'll start to look at out of state markets.

I honestly don't care what state the property is located in. I'm a numbers guy and to me it comes down to cash flow. If i can find that locally, great! If not, no biggie, i'll find it somewhere else.

Thanks for your insight, it's truly appreciated!

1 Vote

Originally posted by @Daniel Amberg:

Hey...

I live in Chandler, Arizona in a C+ neighborhood surrounded by C- and B areas. I've been driving every street slowly, making note of every property that shows signs of a distressed property owner.

I'm a landlord (just one unit) and am doing some out-of-state investing myself.

I've spent hours converting my list of properties to a database with parcel numbers, zoning, owner information, etc. The problem is that I am broke (I quit my job a few months back)!

You have money (I assume) and no information. I have information and no money. Perhaps we could work something out?

--Dan

Dan,

The original posts in this thread are from 8+ years ago. You may have better luck starting a new thread asking for partner investors. Good luck!

0 Votes

I'm getting a 100k HELOC now and intend to use it for my first rental property purchase, so we are in the same boat.

You just have to run the numbers and make sure it makes sense. If you buying a property for cash, you need to make sure your rent can cover those HELOC payments along with your other expenses. If you are using your HELOC for a downpayment, your rent needs to cover the cost of your new mortgage, HELOC and expenses.

I'm analizing a lot of deals now; must have looked at close to 100 over the course of the last week and this method makes it tough to find a property that makes sense numbers wise, however there have been quite a few that have been break-even given this scenario so i know there will eventually be one that provides some cash flow, even when using a HELOC, i just have to find them.

Good luck!

4 Votes

Originally posted by @Claudia Almaraz:

Thank you @Doug McVinua and @Trisha Thornton for your advice.

We are looking to purchase a home for less than $200,000 to have at least of $300 passive income after expenses. We can not find anything here in California and was hoping to have better luck in AZ.

My criteria is identical to yours and i'm having a hard time finding a property in which the numbers make sense and the cash flow is there. Right now i'm getting reports from my agent and am focusing on the central corridor, scottsdale and tempe/ASU area.

In those areas, most properties in that price point are apartments/condos and the HOA fees eat into your bottom line and make the deal a bad one.

I like these areas so i will continue to look but i may need to expand my search criteria in order to find something. Good luck!

1 Vote

Wow the last several pages on this thread took a turn for the worse and it seems Tyler isn't posting anymore...

0 Votes

Very upsetting as i had a call scheduled with Morris Invest for next week and was excited to see what they had to offer. I'm a first time real estate investor looking to buy my first rental property with my wife. Looks like we may be concentrating on properties priced a bit higher in my local market.

1 Vote

All Forum Posts by: Mike Malfitani

Mike Malfitani has started 1 posts and replied 16 times.

Post: Morris Invest Review (after 8 months of ownership)

Post: Las Vegas or Arizona?

Post: The process of a HELOC

Post: What cities in Arizona would you say are hot for Rentals?

Post: Morris Invest Case Study 2.0

Post: Morris Invest Review (after 8 months of ownership)