All Forum Posts by: Matt Wood

Buy rental homes that flood often and take the max amount of flood coverage through private insurers like Lloyds of London to save 20% on premiums. You will buy it at a discount due to flooding, rents will = normal non flood areas but when it floods (every 4-8 years) FEMA will pay you close the full policy amount close to what you paid. Example buy a home for 60k that appraises for 80k and have a flood policy for 80k. When it floods 6" deep or more you will get approx 50-60k for repairs. If it floods deeper and stays flooded for longer than a few days you would receive the full 80k. Sub out the work, you buy material and pay labor only, and spend 20k approximate on repairs then you will have an almost new rental. Then increase your rental amount by 10-15%, re-rent, and make sure tennants have a flood contents policy. Everyone wins when it floods. Top secret, but that's how it's done in the flat lands of the south.

Be sure to check the electric panel and rule out low voltage 3 way switches and old school circuit breakers. Also make sure the roof is not asbestos which looks like slate. Electrical and asbestos can run up expenses dramatically. Otherwise the numbers look great.

Homeopath.com; hudhomestore, and have a realtor setup notification emails that cover your niche area with specific price ranges and open every email daily so you have first shot at new listings.

Found this old question unanswered, same question I have: if a 1200 sf building with concrete can be built for 12k or 10$ per foot can if be enhanced for a 2-3br -1ba res rental for 50$ a foot or 60k a unit, much cheaper than the 90$ Hsf quotes I've received lately. 

One thing I do when inspecting the property is talk to the tenants and ask them if they have had Plumming, AC -heat, electrical, rook leaks. Most renters are honest to strangers! Can help you rule out a large expense not disclosed. Also, I want your first deal to be profitable and look close to home maybe a single unit for 30k with 600$ rent. Buy 3 like this over time and only have 100k invested with 1800 gross. I'm selling the only property I own greater than 30 minutes away, been a challenge to drive out and check on it.