All Forum Posts by: Marisa R.

@Frankie White

Hi, I am not completely out of Atlanta market. In fact I just closed on a recent flip.

However, this market has been so hot for so long I find it hard to get good deals at the right price.

I believe Detroit presents a unique opportunity, where this market is starting to rise. Of course you need to know where and what to buy.

Hope this makes sense

This one is a keeper, purely for cash flow.

Purchase Price - $36,000 (including back taxes/utilities)

Maintenance - $75 per month 

Management - $85 per month

Taxes - $106 per month

Insurance - $51 per month

Rent - $850 per month

17.76%  net return

Income - $6396 pa

@Kelsey Mandus

Hi Kelsey

No, not local, however I have boots on the ground. Taken some time now since 2015 to get this right.

I am repeating what I did in Atlanta. 
Find a rising market where you can flip or hold properties which will be cash flow positive.

Here are some of my target neighborhoods, I really like

Tier 1

Palmer Woods

Sherwood Forest

Brush Park

Cork Town

Tier 2

University District

Rosedale Park

North Rosedale

Bagley

Green Acres

Malvern Hills

My criteria is very simple... good neighborhoods, when flipping there needs to be a price point where end values will make sense. The lower end wont cut it.

I also love to buy where inventory is low, a clear indicator that there is more demand than supply.

I purchased a deal in Rouge Park, another favorite, there were 14 offers on this one. My guy got in and sealed the deal. It helps when you have the right people on the ground and when you have CASH.

As they say cash is king or queen in my case.

When you have a large portfolio of properties the last thing I want to do is be a landlord.

I pretty much want a passive investment where I have a property manager managing my properties. 

However, from experience I have found the only way it works for me is managing the manager.   

In saying this you can take a horse to water but you cant make it drink. So its very much dependent on whether the property manager wants to work with you, so you need to be upfront about this.

Over the years I have developed a system where I have property managers in place, but I also have key maintenance people I have sourced that are reliable and cost effective. My Property managers know they can only use my maintenance people and they understand this and its clearly marked on their systems.

The reason I  use my maintenance crew is because from experience property managers does give a rats about my money, they think I am an open check book and they are happy to spend my money, with little regard to actual costs. 

 I pay all my maintenance people direct via check. No money/expenses come out of my rents, other than the property management fee of 7%-10%

Generally a nice surprise at the end of each month.

This is how I work it and happy with this, only took me 6 years to work this system out... perhaps I am  a little slow at learning, but very happy with this now.

@Mayer M.

Yes, absolutely, happy for all interested to watch my progress

@Mayer M.

I am using cash only for all my deals. 

Yes, I agree it does appear too cheap, but if I told you how I did it I would have to kill you.... its a joke..

Seriously, though I can understand you being skeptical.  

Not here to tell porkies but if anyone is interested in my projects then I am very happy to share. 

I will continue to provide updates on this project and when this project is SOLD I will also provide evidence of  of sale including the link.

If there is a blow out, I will be wearing egg on my face, but I am pretty confident about the numbers.

Hi Everyone

Just wondering where investors are sourcing cash cows?

Yes, I imagine a question asked every day of the week.

Sometimes the only way to do this is doing something outside the square. This requires more work, something like a distressed property and adding value. This may mean networking and finding deals prior to hitting the market. Not always easy, but I have been doing this

So many markets have been rising since 2011, its getting much more difficult to source good cash flowing properties.

I started in Atlanta, but the competition is fierce and very difficult for the numbers to stack up today.

Now I am moving on to Detroit, this is a gold mine, but be wary investors there are good neighborhoods and bad, get this wrong and it will like flushing money down the toilet.

Looking forward to hearing about your experiences.

@Jay Hinrichs   Thanks Jay, I did not realise this. Will keep that in mind moving forward.

@Brian Pulaski

You are correct Brian, big rehab, have already got my own crew and the quote is excellent. I get this.

Its a major part of my strategy, keeping costs down, however quality is still important, its a balancing act.

Also the location needs to be considered and what is acceptable for this property, to ensure we get it right when selling. 

I have been doing this for a while now. 

If there is one lesson  I have learnt as an investor, do not get caught up in what you want, meet the market, what buyers want is extremely important.