All Forum Posts by: Mark DiRocco

@Tim Herman Wow thank you Tim, this is incredible! I really appreciate you taking the time to run this for me. I ran through once myself but am still a novice at the assumptions portion and am really glad to see someone experienced come up with a positive result!

@Tim Herman I suppose I should also note the current owner monthly utility/service expenses are around $300, not including insurance

@Tim Herman Hi Tim, the $2500 is the gross rent from the building as is.

Hello all,

I think I've found 'the one' and am in the process of making my first deal. The property is a 4 unit multi family, brick construction from the early 1900s. New furnaces and AC, no data on roof, plumbing, or electrical. Comes with off street parking/ parking lot. The unit could use cosmetic upgrades or interior rennovation in the future, and I plan on rehabbing and improving. There have been what appear to be minor interior improvements maybe 15 years ago or more, so I think there is solid value add potential. The area is not primed for high end rentals at the moment, more of a time will tell situation.

Current ask is $98k, but a few offers are in already. I am trying to decide on a feasible max for my escalation clause and would appreciate your input. The building is currently fully rented making $2500 a month and no matter how I run the numbers it looks excellent. I've set a tentative limit for the escalation clause at $120k. As an financial absolute max I would be able to offer $200k. I would love your advice on where to set my limit!

Thank you!

@Caroline C.

I've been coming to the realization you posted about input capital versus per door return for cash flow and am on the fence. The overall idea of the BRRR strategy on SFH seems somewhat complex but manageable in the short term, but less appealing in the long term as opposed to multi family. I am daunted by the multi family residence strategy since I'm not very educated on the legal/managerial side. Could you recommend a resource for taking some the anxiety/edge off of a multi family property? Would you suggest starting small with a duplex or two, or aim for an 8+ door unit?

Thank you!

@Kevin Dean

Thank you for these excellent ideas and resources. I've been digging deeper with better information and am looking more closely to the 'middle markets' as suggested. I am learning how to form the essential networks needed to manage from afar and thus far this has been the biggest challenge.

I'm attempting to find something that fits generally into the BRRR strategy which overall seems more involved, but with compounding returns in cash flow, appreciation, and leverage. The long term goal is exponential growth and using leverage to buy up over a longer timeline.

Thank you again for your help! Could I ask, how important do you find tenant factors to be in your choices? (Walk scores, schools, accessibility, etc) are these more of a 'nice but not necessary' if the initial purchase deal is solid?

Thanks @Jaysen Medhurst! I just finished reading though Long Distance Real Estate Investing by David Greene which makes the whole process seem more attainable with a bit of social engineering. So what I gather form your advice is focus more on the criteria I have and let the location find itself, then build a network in that location? I have no issue hunting for the right people and performing my due diligence, I feel overwhelmed by the options I have.

Thanks for the note on 25% down for rentals. Would you mind elaborating why 25% down is a solid option? Suppose I plan on doing some value add rennovation, then renting and taking back out the equity + value added to prepare for the next purchase. Any resouces are appreciated.

Hi All,

I've found my way to this site from multiple channels, let's see what it's about! My wife and I are looking to start investing in real estate and have been researching for a while now. To avoid the analysis paralysis I suppose it's time to reach out for advice. We're looking for rental properties out of state and hoping for advice on how successful investors chose which town or city to focus on. 

Ideally, we're looking to get into a property that is at or less than $250k with minimum 10% down. The market in SoCal where we live doesn't have much room for that sort of deal, hence the desire to look out of state. 

How do you go about choosing what city or location to target in order to start developing a network of professionals to get the process started? We are anxious for a location and patient for researching and finding deals, an ungainly combination. We want to have more focus on looking for deals in an area where we can get our feet wet and have some success.

We have been eyeing Tampa since we've got connections there, and nearby Orlando seems to be a hit seat right now.

Thanks in advance for your help!

Mark