All Forum Posts by: George P.

There will be no profitable duplexes in those 3. Unless u find a rabbit somewhere. 

I have almost  40 sfrs in those areas 

 i have blanket loans, so i close on them, then finance. then rehab with my own money.

after 25-30-40, the bank cuts you off cause you will reach their LTV limit.

 hey william,

all good questions. i have not read that book, but i will see if my library has it. 

i actually do not have a monster day job, just a worker bee engineer without any dreams to climb the corporate ladder.

i do not have a rentals limit, i just whatever fits my criteria and my style. by style, i mean, the house needs to have a curb appeal and be in the right area. there are TONS of houses i passed on because they were either "ugly, weird layout, or in an area that wont attract the tenants i target. 

if i have the money at the moment, if i like the house and if my crew is running low on "projects", i just get it. i have been holding a few houses for the past 8-9 months just vacant in case the market dries up and i need a large project to work on.

I have not much work on the houses for awhile. i still help out if i have a few hrs off here and there, but my crew keeps me in check by working only 8-5 and no weekends. so it's easy to just check on the project when they are not there and since they are not there to work, i just leave. 

i have a good team now, but do not have anyone that can oversee everything like i do. maybe it's because it's all mine and i know it inside/out, but no one will care for it as much as i care and know everything about it. i have spreadsheets that show purchase price, move in, move out, any changes in rent, if they have dogs, what insurance i use, when's the garbage day, what appliances came with which house, water payments for the year, furnace filter size, etc, etc... i update those as the "issues" happen. no one can do a good job unless i pay them a lot of money.

my current payroll is ~120k per year, all sustained by the business.

i think about quitting my day job often, and i certainly do not need it. but it's easy money, and the biggest fear i have is rentals drying up, like they have been. then what am i going to do? stay at home and watch Married w Children re-runs all day? or go and help my guys to speed up a job? that's essentially buying a job... by quitting one.

Location, use, cost? 

Out of state is great until it's not.  Then u lose your mind and your shirt.  He's right.... Just one pro and a book worth of cons! 

Maybe we can help if u ask the question in a different way.  Also, give specifics. 

 I end up with a lot more per house.  Average is around 4 to 7k per house per year. The basic formula is 70s buy, rent for 1100 to 1300. That's my sweet spot. 

 1250 per month is 15k per yr. 

Taxes and insurance is 3k.  I am left with 12k per yr cash flow. So that's 1k per month. 

If I pull a mortgage on it, I'd be left with $509 per moon a 20 yr mortgage. 

Of course at this point it's just gravy 

 I keep waiting for the one that cash flows 13k per month, but can't seem to find it. 

I closed on #37 this morning. it's located in westland. the surrounding cities are Canton, Garden City, Livonia, Redford and Plymouth.

it's very different than what we normally buy to a point that it's unusual for us. we always get 3 bed brick ranches with a basement (see the website in my profile to see a list of them) but this is a bi-level. that means that once you enter the front door, there is a landing - then stairs UP and stairs DOWN. the rooms are upstairs and the dining/kitchen are downstairs. no actual defined "basement".

the living room is upstairs and it will be converted into a 4th bedroom. an extra room means more rent for me.

here's what the numbers look like:

purchase price - 72k cash (they were asking 79k)

rehab - who cares, but around 12k,i'd guess. maybe 15k. the bank had to change the roof since it was caving in.

taxes - ~3k, maybe less

rent - $1,250 (no garage, but a shed)

ARV - i dont know, maybe around 110 (but i dont care about arv)

we just updated #31 and have a few just waiting for us to get "free", but that does not seem to happen. so i am just holding 2 vacant at the moment.

between updating flips for other investors in Plymouth, baths for homeowners in Northville and basements in Livonia, it's hard to find the time to work on all our houses.

it will cashflow nicely, around $350, maybe more, maybe less. at this point, i am more concerned about the number of rentals to increase as long as there's a cashflow over $300. fifty dollars a month is not a deal breaker. 

i still self manage everything, have an assistant that rents them out. i have developed a team and a system that lets us crank them out consistently and at a very high quality. i do not like to have issues once rented and hate going back to fix things that we could have caught while working on them...so we take our time and change everything that needs changing.

let me know if there are questions, i'll answer anything.