All Forum Posts by: Mary White

There are definitely middle of the road routes that aren't quiet as big of a mouthful as a complete "rat hole." I'm under contract on a 4-plex with 3 fully renovated units and an extra residential lot (zoned multi-family) included. They haven't fixed up the last unit because of an aging person on hospice care that they don't want to displace. I'm getting a property that's 3/4 rental ready and that has value add opportunities waiting for my attention. Sure, I will need to get the work done once the tenant moves into a care home, but the we got a good price on an excellent property in an up and coming location. There are always "diamonds in the rough." 

Just a thought...buy Mom and Dad's old house with seller financing and a minimal down payment and rent out rooms...Also, take investing one step at a time. Many variables will change as you move forwards, but showing that you can manage a rental will go a long ways towards increased levels of financing.

Thanks for the excellent podcast. It's refreshing to hear a more conservative approach to real estate investing than is often addressed. We've chosen to only leverage our rentals at 40% loan to value at the point of purchase in order to pay them off faster. I understand that we'll build our wealth slower, but increased cash-flow has replaced (and then some) my income and enabled me to stay home with our kids and for now that is our "why." We are holding them for at least our lifetimes and will still accumulate plenty of wealth with the tortoise approach. 

I absolutely second the notion that being a good and honest person is vital to success. We've gotten excellent deals from sellers when our integrity and intentions are made clear. Many "Mom n Pop" investors care about their tenants and want to pass them along to ethical people. I thoroughly enjoyed this podcast and will be having my 13-year old son listen to it as well as there is a lot of good life advice in there. 

Thanks and keep doing what you do...

I had an appraisal come in $100,000 low on a 4-plex because I live in a rural area with no comps. I had my realtor write up a Request for Reconsideration using off-book comps and eliminating undesirable areas from consideration. That brought the appraisal up $30,000 with these factors in play. The appraiser has a formula he uses to determine value and has to work within what the numbers show.

Actually hearing a person's voice allows you to connect with them and build a relationship. I would never respond to a potential renter or buyer via text message. Pick up the phone, be polite, and casually let the owner know what you have to offer them.

I'm a buy and hold (BRRRR) investor in Klamath Falls, but I know quite a few local flippers. If you are looking for contacts please let me know. The low end housing/foreclosure market is very competitive, but if you have cash ready to compete there are some deals still available. My last deal had 30 offers on it including several cash offers. I also know a fantastic honest and hard working realtor that I highly recommend.

You can't always get every single penny back out of a deal. My last BRRRR, I left about $10,000 in the deal because the appraisal came in very low (rural, no comps). If the appraisal had been spot on I would have made $60,000 profit. The property still cash flows $1800/month (4-plex) so in my book it's a great deal. You basically paid $10,000 for a property that makes you $400 a month. Job well done!

You need to be careful in Klamath Falls, there are tons of asbestos buildings here. We even had a big asbestos problem requiring a big clean up crew in an area of very nice newer homes last year. Cheers!

I would leave your money in savings for a few months and be in no hurry to spend or invest it right now. Take that time to learn from other's mistakes and make a plan for your money. The advice of well-meaning and experienced "strangers" can be invaluable. 

Personally, I would save until I could buy a 4-plex with an FHA loan. That allows you live in your own space and gain income from the other 3-units. Then I'd accumulate money as fast as possible to do it again. I wouldn't get into a big BRRRR project, but if you can find something with minimal work needed, jump on it. Also, if you continue to work online, you really should move to a less expensive market to maximize your cash flow. Best of luck!

If you guys consider meeting on a weekend at times, we’ll drive up. We invest on this side of the mountain so don’t go to Medford meet-ups.