All Forum Posts by: Matthew Becker

My advice is don't invest in OHIO.  The obesity rate is almost 40%.  People are poor—no way to make money.  Most of the state is a crap hole.  You could do worse and invest in Michigan.  Good college football is about all they have to offer and staying warm by the river as it burns. The only thing better is a tire fire in Springfield, where the Simpsons are from. 

People keep talking about fundamentals in OH.  It is a declining population.  Of course, you can get a deal on a property there.  No one would live there unless they had to.  

Sell your property for a loss and invest in a nice place where people who make more than $ 8 an hour working at Poppies want to live. 

Sorry, Ohio, it seems this forum is dominated by people making poor investments in OH. 

A good check-in and check-out is excellent.  But you should do a video/images before and after moving out.  Also, require in teanant to take pictures of dameges when they move in.  Require them to tell you at move-in if something is dirty so you can send professional cleaners back to fix it. 

I would suggest you find someone who is a contractor that you know and partner with them. If you don't know one, find someone that someone else knows. You need a small crew. One guy and a helper can do a lot. If someone rolls up in a 100K truck and does not have a tool bag, don't hire him. He will make all the money. Many things don't need a contractor. They need a guy to lay floors, tile, set cabinets, and paint. Hire an Electrician and plumber when you need one. Contractors have difficulty getting loans, and you could be the money guy. You can produce 5X as much and keep costs under control. If you do enough, it is a full-time job for them, making great money. I started over 30 years ago and did almost everything myself; I hired a guy who did it full-time for me. That turned into between 35 and 40 people doing it full-time for me. I am not a construction worker, but I learned how it is done. I can't do what they do, but I know when it is done wrong and how to fix it, just not with my hands. My ways are not as conventional as others, but I would put my numbers against anyone on this forum. I won't touch it if I can't make $100K a few months on something. I also think most people are better off doing BRRR than flipping. Flipping is a poor man's game. They eat all their profits because they have to live off it. By paying a commission and taxes, you get more money from the property by doing a Refi. You should be able to buy, value ad, Rent, and refinance and not have a penny into the deal. So any cash flow is a return of infinity%. People keep saying this is not possible with the interest rates, but I don't agree. Markets are flat, and there are deals everywhere. You make money when you buy. If you can cash flow at 7.5% then you can kill when rates drop to 5%.

 I would market and cold call as well.  Automatic VM and Text are good, too.  Most good deals to investors before they hit the market. 

Leave communist Seattle and come to Idaho, USA.  Where people are still normal and you can evict tenants but generally you don't have to because people pay their bills here.  You don't have to leave but your money can.  I would advise both.   We do get pretty great returns.  I build rentals in Moscow, CDL, Sandpoint and a new project in McCall.  If you are taking a gain, you might want to consider doing an Opportunity Zone.  You can get good appreciation,  cash flow, and a much better tax shelter that way.  

I would go with Stuart.  You can leverage some and increase your return quit a bit.  If you are really conservative to 50% you can loose your but doing that.  

I would not go into bad neighborhoods.  You get no appreciation, and you might not get any rent from time to time or for 6 to 9 months at a time.

Matt

Crazy: Purple Hair and being dumb but not knowing it.  Now they go together for sure but not always.  Most don't understand taxes:  For example, a girl with purple hair at my credit union did not understand depreciation, and I did not get into Cost Seg with her because she really would not understand that.  I was buying an RV, and she said I didn't qualify because of my income.  I broke down all my taxes and depreciation to show her I made 1M this year.  She said I understand Depreciation.  I said clearly you don't.  I don't bank there anymore.  

What I love:  Old Man Dan at a local Umpqua bank.  Great guy who understands taxes and is always close.  Also, he makes wine on the weekend.  He gives me a bottle and a hug when I see him.  He is my favorite banker ever.  Tickets to football games are nice, but understanding taxes, so I don't have to qualify, is fantastic. 

my wife and she has one clearer who she pays. 

she makes around $100K a year on it . 

You just sold a house.  Do you own your own property now?  

Although each market is different, College towns are the same, especially smaller ones. If I were to invest in Michigan, I would invest in a college town. College towns without large industries are recession-proof.   There are almost 100 colleges and universities just in Michigan.  If you can find something close to you, it would be ideal.   If it is more than 5 hours away, it does not matter if you are in Michigan, Iowa, or Idaho. Do not consider commuter colleges or tiny ones.  I would focus on over 5000 students.  Then, look for the neighborhood all the students want to live in.  It will be between campus and wherever the bars are or downtown.  Some campuses have their little downtown-type area.  It will be evident if you go to the city where they want to live: Madison State Street,  Boulder, CO , the Hill. If you have been to these towns, they are good examples but very difficult to enter and make money from.  Look at smaller markets and apply the same principles.  So probably no Michigan or State but Western Michigan.  This is just an example I have done no reserach.  You might want to check out Wisco.  There state schools besides Madison and MKE are in small rural towns.  Good Luck.