All Forum Posts by: Mark Shaffar

@joseph Welcome to BP! Lot's of great stuff going on in Milwaukee. Definitely check out Nicole's meetup.

 Wow great post Joey. I would also add that when evaluating a market most are looking at price to rent ratios, vacancy rates, unemployment rates, and median income which can all easily be found with google.

@Kyle ScholnickThanks for the thread! I think tons of people were thinking the same thing. Tons of interest in passive income on BP from people with cash but little time, but we're talking big numbers and lots of risk. I completely understand the frustration with finding straight numbers from people who are not impartial. Take this with a grain of salt because I work for a turnkey provider, but my 9 units have produced 9.5% on average the last 2 years not including appreciation which has been significant in Minneapolis. If I'm in your shoes with a bunch of cash I want to invest for my kids or my retirement I want to make sure I am doing everything I can do to lower my risk. Turnkey sounds nice and plenty of people on BP are getting rich off buy and hold rentals but there are also many horror stories of people losing everything. There is tons of advice on BP about ways to lower risk: buy multiple properties, at 2% rent to price, and 70%LTV, with a rehabber, realtor, TK provider, tenant, banker, and property manager that you trust, in a great A or B neighborhood in a growing city that's not in a flood zone, and has low crime and taxes, brick exterior, new roof and mechanicals, multifamily, landlord friendly laws..... These deals are hard to find now as more investors get scared by the stock market peaks and jump into real estate and prices rise. I'm guessing most TK providers would be tickled pink to sell those deals if they could get them. To answer your question you might pm @Larry Fried

 he seems to have a fair number of turnkeys. Again thanks for asking these questions because obviously many other folks are in the same boat. Best of luck to you!

I agree with @Jay Hinrichsand @Derrick Craig

 those price points tend to be very tricky. Make sure you know who you are working with. I hope you find what you are looking for Jie!

 Hey Chris it seems like the 50-100k is the sweet spot for price to rent ratios for SFRs in decent neighborhoods. Some of the bigger turnkey companies would have multiple units available in multiple cities so you should have no problem locating >350k worth of properties, just make sure you know the company you are working with and tour their rehabs and the neighborhoods they invest in. 

2427 5th Ave Moline, IL 61265

3 bed, 1 bath, detached 2 car garage, 1,014 sq ft, built 1892. Closing date: 7/17/2015. Massive equity for cash buyers on this deal.

Pre-Renovation Photos

Interior Video Walk-Through (Pending)

Exterior Video Walk-Through (Pending)

Price: $20,200

Rehab: $30,000

Costs to Carry: $1,000

Closing Costs: $2,000

Total Project Expected: $53,200

ARV: $76,284

Rental Projections

Monthly Rent: $850

Taxes: $119

Management: $68

Vacancy: $43

Insurance: $83

Reserve: $43

Net: $496

Monthly x 12: $5,950

Strictly Cash on Cash ROI: 11.18%

Financed/Refinanced 80%

Down Payment: $10,640.00

Mortgage Interest Rate: 5%

Mortgage Amortization: 25

Mortgage Monthly Payment: $248.80

Net Cash Flow Less Mortgage: $247.01

Net Net x 12: $2,964

Financed Cash on Cash ROI: 27.86%

Comps

846 27th St Sold 82K 4/15 (74.68)

2/2 1098 sq ft

2 story brick built 1939

basement/unsure of garage

.4 miles away

1050 29th St Sold $75100 3/15 (75.78)

2/1 991 sq ft

Ranch Frame built 1964

crawl space/ attached 1 car

.8 miles away

@Alexander FeliceGood strategy if you have the cash on hand

@Anthony GaydenSeems like you are right in that you can't really predict when and how bad the next one will be, but you can prepare ahead of time and perhaps pick a point when the deals are just not good enough and extra cash gets put into savings or extra principal payments instead of the next investment

@Dawn Anastasithanks for posting! Very entertaining.

@Douglass Belt$100 a month on a 5k investment sounds good to me! Good luck buddy.

Mark

@Marcus AuerbachThat picture says it all.