All Forum Posts by: Matt Lyons

As many will tell you: Cash flow is easy if you put enough down! That being said, I have had a lot of luck cash flowing a great ROI with 20% down in more rural areas. This is areas people often overlook but I have found the ROI strong, able to acquire properties at very low costs and a great group of tenants... in short, sometimes things are better in small towns where no one else looks. This has been in the Midwest about 1-3 hours from a major metro area

I own a few buy and hold places but I am getting into BRRRRR and

Hoping to find an easy way to determine ARV

@Aaron Lenard

I have been investing for a couple of years now and own about 30 doors. I buy for cash flow. I am from Chicago but have done a Dallas flip and love Texas.

Here is my suggestion: look in that area for places you can house hack (rent out rooms not houses) as many people need to be there for short term and often single men not families due to oil work.

Leverage your local contacts to find places that need work and rehab to optimize number of bedrooms for room rentals

If it gets tough due to oil industry then I would start a little away where things are cheaper and then focus back in midland during next oil downturn

Also reach out to others (like me) for investors

@Ross Bowman

Personally I would walk from the deal as is today. There is very little room for error and if things go PERFECT (meaning no vacancies or repairs) it would take 45 months to get your downstroke back... I use 36 months as my line on cash flow deals that I plan to hold. I assume the best and know it will not go perfect but at a 33% return on capital things can go a little bit less than perfect and not kill me

I would fight on price so you only put $11k down... that hits the 36 month return on cash mark

@Zack Wengert

Under my system this place would not work BUT I only look at cash flow not appreciation and Ft Worth would certainly have that

@Zack Wengert

So I look at the deal a little different:

I don’t focus on repairs over time or vacancy... I keep it real simple: I take what it brings in gross monthly now, then take out debt, insurance and taxes... what am I then left with... I take that number and divide it into my downstroke and look for a number of 36 or less... meaning I get my downstroke back in 36 months or less... I know there will be repairs and I know there will be vacancies so my Return on cash will not be 33% but by doing deals that perfectly show this I have room for repairs and so forth and still make over 20% return on cash

@David Kuhlke

Try to find a lender that will do a cash out refi... so a new first loan but you get cash to use at closing.... or go with another bank that would give you a better rate. If you call around you can find it... I did a cash out refi with First Midwest but only helpful if in the Chicago area