All Forum Posts by: Mason Wade Morris

@Mike Dymski those are good points. I was looking at the other benefits of investing as extras and really focusing on my Cash on Cash ROI and my monthly cash flow as my primary drivers for evaluating a deal. I thought that was pretty high for closing as well, but that is what the realtor put in the estimate for me. I may need to look into it a little further to get a better number.

Thanks for all of the inputs/insight everyone. I just wanted to see if I was looking at things with right mindset and make sure my numbers are in the ballpark.

@Brent Coombs Thank you for the heads up. I knew I had hear of that before, but it did not cross my mind at the time that an under $50k loan was going to be a hassle or even possible. I believe I understand what highest and best means, which is what I believed at the time was "my" highest and best that I could offer, but maybe I am ignorant on the subject(very possible I am new to the game). I'm not really second guessing myself, I understand that this deal has come and gone, but I was just looking for a little knowledge to be able to apply to my next deal. And it seems to be much easier to talk about something real than hypotheticals.

@Christopher Phillips Thanks for the info, I agree my numbers are pretty conservative being my first purchase, however appliances weren't really the issue. I agree I did not make it to the inspection phase of the purchase so my numbers are pretty rough and I also plan to do most of work to get an understanding of the rehab process. My financing is through a mortgage broker and I am approved, but that's not to say they didn't have a lower limit on mortgages.

@Andrew Johnson I agree the mortgage may have been a problem, I will be speaking with the lender and see if there is a lower limit. I agree I was being conservative on appliances and I will adjust my numbers next time. The area, is not a war zone, but definitely on the cheaper end. Right now I have roughly $20k to invest and purchasing a SFR $100k house at the moment isn't an option.

@Ken Dillard @Debra Grumbach@Jory Harveythanks for the encouragement, if nothing else I'm still building capital and expanding my options for the future.

@Ralph R. You have some great points, and I agree a $100k house would be nice, however I do have limited capital at the moment and would not realistically be able to afford $100k house and repairs. In this area, the rents tend to plateau as well. just because it is a larger and nicer house the rents do not scale linearly. In other words once I get some more capitol I can start looking into higher end areas.

Again thanks for all of the info and insight everyone, I will keep looking and take the words of the experienced into account for my next analysis/offer.

Hey guys, while in the process of trying get my first rental property I made an offer on the following property after the previous buyer's financing fell through. I made my highest and best offer $53k and the seller's agent said they would not go below $57k. I'm wondering if I should've offered more. The house went under contract pretty quick after they turned down my offer.

https://www.redfin.com/OK/Midwest-City/4416-Bonapa...

Below are the numbers:

Purchase price: $53k(20% down $10,600)

Rent: $825(may have been able to get $850, wanted to be conservative)

Taxes: $55

Insurance: $65

Closing Cost: $3500

Vacancies: 5%($42)

Repairs: 10%($83)

CapX: 10%($83)
Property Mgmt: 10%($83)

Mortgage(4.75%): $222

Cash Flow: $195

So at this point I am happy with the cash flow number and really even paying $55k-$57k the cash flow looks good.

Here is the part that I am having a hard time with, ROI.

I Estimated that the repairs would be $5k-$10k before getting it rented.

Flooring: $2500

Kitchen Cabinets: $2500(prob the worst part of the house)

Interior Paint: $400

Fridge: $750

Dishwasher: $500

So at $5k repairs ROI: 12.3% (good); however at $10k repairs RO: 9.7% (bad). So if I pay more than $53k my ROI obviously gets worse even if repairs do come out to $5k.

This scenario has been breaking most of the deals out there. Good cash flow, but with repairs it turns ROI below the 12% I am looking for. I am not good at estimating repair costs, so I try to be conservative on my numbers.

Just trying to get feel if I am being overly conservative and missing opportunities. What would you do?

Hi @Ken R., thanks for the welcome. It would be a pleasure to talk investments and media business I will send you a PM and we can exchange contact info.

Hi @Rhett Tullis, thanks for the insight. Haven't had to deal with the Del City inspection process yet, but plan to have them inspect along with a basic inspection. Hopefully this will show any red flags that Del City will need fixed before purchasing. I have a found a few properties and made offers, but I'm wondering if I am being overly conservative on my numbers and making too low of offers. Seems like the rents people are claiming are in Del/MWC are very optimistic.

Hi @Jay V., I have looked into and am interested in Moore as well, but unable to come up with anything. The only deal I've seen was a Fannie Mae owned requiring owner occupied purchase. It would be great to get some info on what your doing, I really appreciate the offer.

HI @Evelyn Tilman thanks for welcoming me. I would be happy to help the brokerage when the time comes, I can help with ground images as well(let me know if you would like any more info). I agree the market does seem pretty hot, just have to keep my eye out. Pleasure to meet you and happy hunting for deals.

Hey @John Knisely thanks for the welcome. I agree we do seem to have a lot of the same stuff going on for sure. You know Boeing down in OKC is growing if you are ever looking to get into a cheaper market ;). Pleasure to meet you and I may pick your brain on the aerial business or investing side at some point. Thanks for reaching out.

Hi @Rocky Griffin, thanks for the welcome. Right now I am really looking invest in C+ to B neighborhoods in the OKC metro. I have been focusing on Midwest City/Del City area around Tinker and Boeing. However, anywhere the numbers work, fit our budget of $50k-90k, and in a decent neighborhood. The market seems to be moving really fast right now making it difficult to find good deals.

I have two drones that I use, a smaller Phantom 3 Pro, and then the larger Inspire 1 Pro.

Hi everyone my name is Mason Morris! I'm a newbie from the Oklahoma City area. I am 28, married, and currently work full time as an engineer at Boeing. I am also building a small side business providing aerial photography mostly for real estate sales, and roofing inspections.

Been looking to invest for 1-2 years, but mostly educating myself up to this point. My wife and I have now saved enough capitol to purchase our first Buy & Hold property since buying our primary residence in January. I have made a few offers at this point, but nothing that has materialized yet. 

Looking to network, build relationships, and learn with like minded people locally and through bigger pockets. Over the next 10-15 years my goals are to replace my income with Buy & Hold properties.