All Forum Posts by: Michael K Gallagher

@Enrique Jevons certainly agree here.  We see rentals sit in this market all the time becuase they don't have central air.  Even if the property does not have central air an owner providing some kind of cooling is always a huge plus in desirability.  You generally do not attract the top tenants as candidates if you don't have AC or central air here.  with those kind of houses the only option is to offer it at a low enough price its considered "worth it" to forgo the cooling.

@Dave Sims if you are not interested in paying for a full service leasing agent, which is totally fine, then I've historically offered a flat fee for a group of open houses.  We would pre schedule them so that you could market them, and then the agent shows the unit, you know are only giving access security or key wise to a licensed professional (this is my biggest issue wit the tenants show themselves, we've had houses rekeyed and leased out as a scam in our market before because or services like opendoor and the like), and the agent simply directs everyone to whatever online app you have. I'd anticipate a PM would also be willing to do this but can't speak for them of course.  

Hey @Mary Huong Nguyen Welcome to the forums, if you are into investing in real estate this is the place to get some of the best information and connections out there totally free.  Excited to watch your journey!

@Kevin Liu would agree with what many have said here. Although the BRRRR method works to recycle funds it is also higher risk and leaves yourself susceptible to short term issues like construction etc. Not saying you can't do it, many people are successful, but if you want a good intermediary step on the way there a turn key rental to learn the process and leverage some of your funds could be a more "base hit" way to go. Many turnkey providers are offering interest rate incentives too. so they are worth checking into and making sure the BRRR is really "worth the squeeze" as they say.

@Allan C. man is the app still going?  I haven't even logged in for a while.  always thought it was a little clunky, but man I'd hop back on if they've been making advances and improvements.  I hop on and off dorrward once in a while, but not nearly with any kind of consistency.  

no issue in my mind with doing a turnkey deal, if it is truly turnkey.  That in my mind means most of the major rehab items and cap ex items have plenty of usable life left on them, the general layout and condition is solid and as many have said here, as long as you can make the numbers work to at least pay for itself or cashflow a bit its a solid first deal.  But again the condition I think plays alot into the "value" you are getting here.

if you could do it and move into one side after a tenant leaves and then refinance into an owner occupied loan, that in my mind would be the move.

This is fantastic @Juan Cristales thank you for sharing.  What will the numbers look like on this duplex?  build to rent is something that has always interested me.

@Peter Mckernan that's good advice actually thank you.  I honestly find myself having a hard time balancing coming off "casual" with still wanting to not seem like a random yayhoo, but the conversational tip was quite helpful, thanks much.

Agree with @Kadee Gittel that wreaks of the potential for title issues, and scammers trying to sell property they don't have the right to.  

@Karl Markarian one of the best talks and viewpoints on this exact topic I've hears was from Ashley Wilson at BP con in 2022 and her talk "the caprate con".  She into into exactly what you are discussing above and so much more.  biggest thing I took away was the fact that people obsessed with cap-rates oftentimes don't understand the underlying "variability" in them. honestly if anyone is too hung up on caprates its a pretty decent sign they are somewhat "unsophisticated" from my experience.  To your point they lack the ability to zoom out and see the asset as a whole.