All Forum Posts by: Michael Simolke

@Shawn O'Gorman bought first one at 23.. on #5.. I wouldn’t flip until you get a few under your belt.

Start with a cheap place and use an fha at 3.5 or put 20% down on a conventional if you can live there and fix it up slowly.. just spend a ton of time learning. Each home thereafter, acquire it differently (seller financing, cash, hard money, refinance) throw a bunch of stuff against the wall while your young and see what works best for you. Become a jack of all trades. Flipping is a job not an investment. I flip then rent. Small homes cash flow higher but large homes appreciate better (in general)

@Evan Parker let’s take a look at your proposal in reverse... is there something morally correct about watching homes deteriorate and neighborhoods being bad solely because people “grew up” there?

There are actually a ton of people who live in these dump neighborhoods but can afford a $800 a month nicely renovated small single family but they have to live in the bad neighborhood because there isn’t much clean cut “gentrified” cheaper neighborhoods around.

Curious to hear success or horror stories using auction.com for buy and hold single family flipping/value add properties.

@Heidi Kenefick that’s not a horrible inspection at all. But because you think it’s horrible, the seller probably also thinks that. Show the inspection to the seller and get a lowball deal/steal. That’s the only way your inspection will be worth something.

@Heidi Kenefick sounds like a pretty normal inspection for a value add home. There are even new construction homes that has pages on pages of stuff wrong with them in an inspection. The money you spent on your inspection wasn’t the best money you have spent it was a waste. Eventually after you have bought many properties and are an investor you won’t even order inspections.

@Marisa Rowe property managers typically have dozens or hundreds of properties to look after and care for. What is it about you and your relationship with them that is causing them to suck. That’s the question you need to ask. Your personal relationship with your property manager is everything when it comes to how much they care about your property. Involve them in the property, make them feel good when they do good things for your property, if you need to be tough on them find a way to make it a team effort to fix the problem, never single them out or blame them for something.. real estate is a TEAM SPORT.

@Remone Randolph in NC, there are really only 2 major cities that will stand the test of time. Charlotte and Raleigh. Raleigh has the 3 best colleges in the state within miles of each other. Duke, unc, nc state. Major technology hub in the southeast. Don’t know much about Austin, but Raleigh is definitely not slowing down growth anytime soon, regardless of housing trends.

@Dassi Lazar unless the norm that you follow is all really successful, and they don’t do it. In this case you would be different and unsuccessful. Being different is not related to success. Making smart moves is..

@Dassi Lazar Think big. If you had 1,000 units would you be asking this question. Responding to maintenance issues and providing a nice rental property is much better than any cheap gift card you give. Also giving a gift is a bit demeaning due to you collecting all that rent then giving them a cheap gift. Most tenants will not respond the way you might in that situation, they may be offended. Not worth it.

@Dassi Lazar if someone decides to stay because of a gift they are also the person that would leave for a minor problem