All Forum Posts by: Jason James

Great... I will look into something like that. 

I would like to keep it but I agree that the winter months and freezing are no good. 

Hello all I have a 4 - Plex that has an outside water spigot and I "think" others in the area "other buildings" and or my tenants are using this spigot when they aren't authorized to. It has no handle and has a stem that I have a key for but you can easily use pliers to turn it on. This could potentially run the bill WAY up and since I pay water I want to lock this thing down. 

What are you guys doing in this situation? Ideas? 

Thanks

@Jered Sturm , Very good job and it appears you are killing it. Keep up the good work! I was wondering what your average rehab cost was per property (labor included). You said your average purchase price was $31,812.00 but you didn't state how much you have to put into these types of properties to bring them up to the average $930 per month rent rate. If you don't mind sharing that info I think it would be great for other to understand what it really takes. Plus your story will encourage others to get out there, find a deal, work hard and get paid. It can be done! Here is Louisville I usually have a total of $45K - $50K in a property and rent for roughly $850 - $900 per month. 

@Joe Fornasiero Didn't mean to get off topic just had to ask the question. Sounds like you are moving right along as well. Hope the deal works out for you. 

Welcome... Good luck and if I can help in any way please feel free to reach out. 

At your age I would suggest you keep working hard flipping cars and trucks or whateverelse makes you money while learning as much as you can about real estate. Find a mentor and learn, learn, learn. Save as much money as possible and then buy your first property CASH! At that point credit will be less of an issue. You could easily leverage the first property to buy more properties. Being so young and not really having the cash reserves or experience I wouldn’t suggest you jump in too deep.

I would also like to say working hard flipping cars and trucks to earn $10k is AWESOME! Not many people (grown folks) have that determination. You are doing great already!

In short take your time and things will happen for you as they should. 

I agree with the group as well. Not much to add other than its tough to get excited about areas like this when you can do so well in other areas of the city that have much less risk. I guess if you have the funds to go long in areas like Portland you may see a good return later. 

As Theron mentioned I too wouldn't be opposed to the area if there was a way to mitigate the risk. I am always looking for opportunity....

Welcome... 

This site is a great place to learn and connect. I agree with Michael podcast are your friend...  Enjoy. 

@Jon Klaus Good question as I am in the same boat. I stand to have a large gain from the sell of our (meaning LLC) commercial property and I to want to 1031 exchange my portion. I have done a bit of research online but no real clear answers from anyone that has actually done it. It would be great to hear what others have to say. Although its tough to explain through a post I agree, it would be great to keep the information flowing. Any help would be much appreciated.

Thanks for the feedback. I agree that it seems like a good deal I've just always stuck to my 30% ARV rule and it has never failed me. That said after doing a little more research in the area I think this is a good deal and the return on cash is great as Tim Cooper pointed out. I plan on meeting the seller to discuss the deal later this week. I will update the post after our meeting.

Thanks 

Good day all...

I have a package deal of 5 SFR that I can purchase via owner financing with 0 down, 6% on 30 year amortization and 5 year balloon. Cash flow will be about $1,363.00 per month after all expenses. The properties are in average (no major repairs needed) condition but the area is a little rough. All properties are rented and current. The seller is motivated and no longer wants to be a landlord.

I have never deviated from my 30% ARV equity rule on purchase. My purchase price on this deal at this point puts me closer to the 20% ARV equity mark. These properties will get very little appreciation since the area is just not that great. Not to mention I never buy based on appreciation either, it's just a bonus to me.

My question is this... Would you buy these properties with good cash flow if they didn't hit your equity target? Meaning you are paying closer to the actual appraised value of the property.

My thoughts are a couple big repairs, issues or eviction and I can dip even deeper into the loss of equity.

Couple positive notes. I have known this seller for a long time and I trust his disclosure on condition of these properties and 0 down with instant cash flow isn't bad either.

Thoughts?