All Forum Posts by: Nathan P Tanner

Hugggge that is true. just like all big apartment complexes, your so right. Appreciate the insight. 

Quote from @Doug Smith:

If you look at the biggest historical drop in home prices during the last crash at the end of the 2000s decade, prices bounced back within 6 years. If you bought at that peek, held onto the property and collected your rent, and sold it 6+ years later, you were more than fine. It's those that freak out and panic that 1) lose money and 2) make us that know better a lot of money. Never has there been a time since the Fed has been tracking home prices that you would have lost money if you just held on, took care of the house, collected your rent, and didn't panic. That would be my answer. 

 Thank you Doug, I recently told my brother something similar. Your words are spot on in my book, makes a lot of sense. My only thought on this would be in that time prices did drop would rents go down as well and possibly lose tenants, have to re rent at lower price that didnt cash flow ? loose the house or have to sell?

Let’s Talk Deal Analysis – What Framework Do You Use to Underwrite a Deal?

Hey everyone 👋

I’ve been spending more time analyzing potential real estate deals and I want to get better at understanding how to properly underwrite a deal — beyond just using a calculator. I know BiggerPockets has a great tool for this, but I’m really interested in learning the why behind the numbers and building a deeper understanding of the process.

I'm in the Bay Area, California, so I know numbers and margins can look a lot different here compared to other markets — which is why I’d love to hear your approach.

Here’s what I’m trying to understand better:

- What framework do you use to analyze a deal?
-  What percentages or formulas do you rely on (e.g. rehab, holding costs, buffer, etc.)?
-  How do you account for fees, closing costs, holding costs, rehab, and other variables?
- What assumptions do you plug in (ARV, rent estimates, exit strategy)?
-  What are some things you wish you knew early on when you first started underwriting?

I want to move beyond “plug-and-play” calculators and start really learning what makes a deal work — especially in a high-cost market like the Bay.

If you’re open to sharing your thought process, tips, or even walking through an example deal, I’d really appreciate it. 

How Do You Get a Property Rented Before You Finish the Rehab?

Quick question for the experienced investors out there 👇

I’ve been hearing about investors who are able to line up tenants before the rehab is even finished. That sounds like a smart way to minimize vacancy and start cash flow ASAP — but I’m wondering, how exactly do you make that happen?

-  Are you pre-marketing the property during the rehab?
- Showing it while the work is still in progress?
-  Working with property managers or using specific platforms to get interest early?

I'd love to hear your strategies — especially those of you using the BRRRR method or working on value-add rentals. How do you build demand before the property is officially ready?

Any tips, tools, or timelines you follow to pull this off would be much appreciated!

My Brother’s Scared Home Prices Will Drop – What Can You Do to Mitigate That Risk as an Investor?

Had an interesting conversation with my brother recently — he’s hesitant about getting into real estate right now because he’s worried home prices are going to keep dropping. 

His concern is valid. No one can perfectly time the market, and real estate does move in cycles. But it got me thinking — for those of us who are actively investing, how do you mitigate the risk of buying in a declining or uncertain market?

Here are a few strategies I’ve been learning about (and would love more insight on):

-Focus on cash flow over appreciation – If the numbers make sense today with positive cash flow, temporary dips in value hurt less.
- Buy with equity – Off-market deals, distressed sellers, or value-add opportunities can give you a discount and some built-in protection.  - - -- Use conservative underwriting – Run the numbers with worst-case scenarios in mind (higher interest rates, lower rents, etc.)
- Stick to fundamentals – Strong rental markets, job growth, low vacancy areas — these stay resilient even in downturns.
- BRRRR carefully – If done right, you’re recycling capital and not locking yourself into an over-leveraged position.
- Have multiple exit strategies – Rent it, flip it, sell it wholesale — flexibility is key in uncertain times.

I’m curious — how are other investors thinking about this right now? What advice would you give to someone like my brother who’s nervous about getting in at the “wrong time”?

Would love to hear your thoughts and connect with others who are navigating this market with strategy and caution.

 Thank you Erik, I appreciate your help for sure. seems like its endless on who can finance a deal. Finding the right company that I can team up with and work long term is my goal. Someone to have a relationship with, someone that can really help me identify if my deals make sense.    i will send you a direct message so we can talk more 

Thanks for the reply, I appreciate the help so much. all those questions make sense to me, the cool part is I had been looking for my first home in the past year and haven't stopped dissecting the market since and watching things unfold in the past year. I do need to spend more time on specifics like you stated above.

-Are prices dropping? = Yes

-Tight rental supply? = Need to look into this 

-Are rents high? = Not as high as covid 

-inventory of homes for sale? = Need to look into this 

Hearing you say this is the most challenging time to determine what is going on in the market, makes me happy to know im learning now at one of the hardest points. To me it just makes me think after I get threw these times and learn,  it's only going to get easier. 

Something I need to get better at is analyzing deals and finding more deals that make sense I think my next post is going to be about wholesalers and how to find off market deals. some homework I have is figuring more specific questions about what and why the market is doing what its doing.   Karen thank you for your advice I would love to stay connected. 

 Thank you Gabriel, I will send you a direct message now.