All Forum Posts by: Michael Lauther

Sandy Uhlmann I think it is a great idea to have a bigger pockets contractors list that enables posts and reviews. Competent, reliable, honest contractors are critical to real estate investors and there are many good contractors that frequent this site.

Johanna Perez I have found more than enough help and guidance on Bigger Pockets. The support you will find here is incredible and for the most part it is given freely and without strings or hidden agendas. You would be hard pressed to find a better mentor than the ones that regularly come back to this site and participate in the discussion.

My advice to you is to become a resource in the market that you choose. Become an expert in the different neighborhoods and if possible become involved in their communities. While there are many paths to success in real estate investing, I would council you to become an knowledgeable and focus on a single market. This has worked well for me as I find my way.

Joseph Montes congratulations on your first property. It sounds like a great find and the fact that you have contacts in the area are a big plus in your ultimate success. I currently invest in Dayton OH and Live in NY about 700 miles from home and I could not do this without developing local contacts that i maintain communication with. I would ask your family if they know a handyman that can take care of small jobs on short notice. Pay him promptly and pay him well. I also pay my handyman to inspect and take pictures of the property as well as to prepare and sign a lease. Best of luck to you.

Mubasher Riaz the value of these properties has a lot to do with the surrounding neighborhood and if you are the investor your abiilty to manage a rehab..

Christian Podedworny I have used the free portion of gosection8.com and have had more responses than I can handle but be aware that programs and availability vary and my Section 8 rentals are all in Dayton OH. NY may be much different than OH.

good morning Javon Rice, I am currently invested in Dayton OH as a buy fix and hold landlord. Let me know if I can assist you in any way. I live in NY and travel to Dayton several times a year.

If you plan to eventually sell to a retail buyer the cedar if maintained may get you more money. What does the neighborhood call for ? If all the properties in the area are upscale siding I would keep the cedar. If the probability of selling to another investor down the road is high and most of the surrounding properly us vinyl than I would do that.

Jennifer Lee I look to buy slightly distressed properties in working class neighborhoods well below current market because I pay cash. Short sales and distressed owners. My primary goal is maximum cash flow in an area that will rebound once the economy comes back if ever. No exit strategy per say but of course will take a profit where presented but I am content to collect rents as a significant part of my income.

Alan Chambers I noticed you got an answer re why mortgage payments are not included in the 50% rule. They are most definitely a cost and with luck they will be paid out of your positive cash flow before any profits are realized.

To address what is now being called a war zone I would simply advise that you spend time in any area where you intend to invest your money. Get to know the people in the community as well as those who will service your property. You will be able to assess the community yourself because as you see there is no real hard definition of what a "working class neighborhood" is as opposed to a "war zone". That is a judgement call you will make.

Zachary Sexton you have the 2% rule down and I would add that it applies predominantly to lower price properties in low income areas. Properties that have opportunity for greater appreciation in upscale areas generally have a lower percentage applied as a starting point. The rule after all is only an initial evaluation of a property to see if may be one to pursue.

The 50% rule states that on average the total operating expenses will be 50% of the rent. This would include such items as taxes, insurance, maintenance, property management and vacancy. You may do better or worse than this in any year but on average your expenses will be around 50% . Again this is not really a hard and fast rule but just a starting point to evaluate a property quickly. There are other threads on this subject that quote studies of rental property and the actual numbers have approximated the 50% rule. you should note that mortgage payments do not get factored into this analysis.