All Forum Posts by: Noel R.

Thank you for all the responses. Going to start digging. Still considering some targeted direct mail in local area but wanted to see what the pro's thought. 

Seeking buy and hold rentals that meet or exceed the 1% rule. Prefer west coast if possible. Anyone willing to share?

@Lance Robinson any updates? Still holding these turnkeys? Buy anymore?

Any updates @Snehann Kapnadak?

@Jay Hinrichs Just wondering what your thoughts are on this type of investing for those who desire a more hands off passive investment? Is this something they could do? What type of commitment is required to get the team formed and start acquiring properties?

The reality is I am the epitome of 740+ FICO with 20-40k to invest but I like my job and am in no hurry to make REI my full time gig. I would love to slowly add REI to my portfolio with the hope that it may get me to retirment quicker while taking advantage of the tax benefits.

Awesome work. How did you find the deal?

@Jay Hinrichs Thank you for outlining the steps one should take to put this plan into action. Is refi lender just your standard mortgage broker or will I need to dig to find one? Assuming I get them in place and find a market I like the next step is finding a flipper? The flipper makes his money through wholesaling me the deal and nowhere else? 

In terms of flippers, I can reach out to local flippers in area I find desriable to invest, though what makes this appealing to them? 

Also what is worst case scenario here? I assume its moving forward on a property and not being able to get it to estimted ARV and having to take a bath on the HML?

"The key will be forming the team and finding the players in the fields to do this...

Good luck with it .. it works very well for all you 740 fico's and 20 to 40k in the bank and a burning desire to own cash flow. Do this 4 times .. the move to your 10 loans then move to your portfolio lenders and in 3 to 5 years you have a nice portfolio making you 2 to 5k a month positive cash flow with very little cash out of pocket."

A wise man I know said leverage to the gills if you want to invest in RE. I believe this is exactly what he was hinting at. Now the challenge is forming and finding the players. @Jay Hinrichs I am the epitome of what you speak of located here in beatiful Sonoma County a place you are familiar with. Making this work here is not impossible but definitely a challenge. 

How does one with zero investment properties go about finding a HML and begin establishing a team? Also what wasnt mentioned is the risks involved with this strategy. Lets say I find a HML and make my 1st purchase, now I am exposed and must rehab close to budget and have ARV at or near estimates or I find myself in a jam. How does one mitigate this risk? Is this where the team comes into play?

Sounds like the 1st step in the process is HML and REFI lenders. Without those in place I am spinning my wheels.

No utilities that I am aware of. Stock market would net greater returns now but I am looking to start investing in realestate. Area seems decent. Also was thinking there may be an opportunity to split them and sell individual down the road. Saw a half unit sold for 170k within past 6 months. Not sure on costs and ability to split.

All numbers annual. House built in 1980. Property is 2.5 hrs away and has long time tenants in place. Rents 1150 newer tenant & 925 longtime tenant, identical units which leads me to be optimistic about raising 925 up over time. Considering self managing to make this baby cash flow. Am I missing anything? Thoughts?

Rental Income = 24900              Cash Flow = 1026 

Vacancy at 5% = 1245

PM at 10% =  2490

Property Tax Estimated at 1.25% = 3250

Repairs at 8% = 1992

Cap Ex at 8%= 1992

Insurance = 1048

Mortgage @ 4.5% = 11856