All Forum Posts by: Matthew Becker

@Nathan Gesner 

ageeed.  Very simply.  

Are you going to continue to live close by?  If so I would manage it your self.  It is very hard to find good property management companies.   I have run a few.  The employees that are good migrate to better paying jobs.  The bad ones stuck around.  People will not care as much about your house as you do.  Tenants also prefer private landlords.  You can do 10 pretty easy on your own.   You need a good handy man or fix stuff yourself.  

Well the numbers are good.  You will have to get a commercial loan.  I generally would not invest in a place that is declining in population but if you are going to live there then there can be exceptions.   If you can get a loan and live roughly for free then I would if I planned to stay in th community.   Don't numbers.  Barbershop and churches are pretty recession proof. 

Are you talking about which market in Australia or US 

walk and buy the house next door and compete 

Here is one my current 4 BRRRR's. They are all pretty the same this one cash flows the least amount but has some additional upside. I don't consider this home runs, but is in great neighborhoods in a small college town, where houses are in rough condition. No one in the forum seems to focus on these small college or resort towns. Rich people move to places like this to retire and are entirely recession-proof. Even in a lousy economy, college towns generally grow in demand because people go back to school.

304 N Jefferson Moscow ID - Single-family craftment house on triple lot in R4(high density in my town)  Price - $325K, $100K down owner carry 5%, I am converting into a duplex. 2BR 1 BA - $1600,  4BR 3BA $2600.  Total rent: $4200.  This will take 4 months.  

Project scope: Moving some walls around, three headers, remodeling bathrooms, adding bathrooms, and adding a kitchen. The current kitchen needs a new countertop, sink, and appliances. The total cost is about $100K. Granted, I have a 30-person construction crew, a designer (my wife, so literally in-house), and a plumbing and electrical company that works on my stuff solely. So this might cost you $150K. New cost for me: $425K Rent: $4200. (Crap just shy of 1%) New value. $4200 x 150GRM = $630K. If I listed it for $600K, it would go under contract in a week. I will refinance it at 6.25% (yes, you can still get that rate through solid commercial relationships; I just closed one at 6.06%). LTV 70% Loan $440K.

The payment is roughly $3400. 

So you have zero money in if you consider fees and carry cost and cash flows $500.  The bonus is the lots are worth $300K, which I will build a 10 to 16  plex on when ever I feel like it.  I have been doing the same thing for 30 years, and nothing has changed.  Plus, everyone now has all this amazing information.  You can all do this stuff.  

Ask off as much as you need to be safe.  If you don't get it, walk away.  There is always another deal.  Don't be emotional, just rational.  Real Estate is a safe, stable investment that makes you money in the long term.  

 I would suggest you partner with an American in a specific market you like in the South or Northwest.  It seems like everyone wants to do all their own deals why are more people not working together especial you young people. .  If I wanted to invest in North Carolina, Florida or Texas, which I am considering.  I would just find someone in this network and work with them.  Or I would invest in a small fund in these areas.  Create buying groups and take down 10 times as many properties. 

 You can with a value ad, but is it hard on turnkey unless the management company is really bad.  I have bought several in the last month.  

 How do you guys say a place that has been losing population is a good market to invest in?  It is still not a desirable place to live.  Your appreciation will be inflation, which is real appreciation because of leverage.  But with so many markets that are growing and will continue to for reason that are obvious.  It makes no sense to me.   I am not saying you are wrong because I don't know the Cleveland market.