All Forum Posts by: Pete Winslow

Hi Jamie,

Sometimes it may be better to drop the price slightly to generate interest.  Just make sure that you are never dropping the bar for the quality of tenant.  I always have standards of a 650+ credit score and no negotiations on the money that is due at signing.  If they don't have enough to pay final month, first month, and security deposit up front then chances are they won't have my rent ready when it is due in a few months.  Better to be patient through a bit of vacancy than to get the wrong tenant in the unit and have to evict.

I have been seeing prices drop a bit in/around cities currently given the pandemic.  May have to be flexible with your monthly rent ask.  May not be a bad time to look into refinancing to lower your mortgage payment. 

Bigger Pockets also has rent estimators that can be a huge help when setting the price!

I agree - as long as the numbers work even with the flood insurance then it should be a good deal.  Just make sure that you run your numbers right!  

Often times you can make a lot of money doing what other people are afraid of - flood zones could just be that thing.

Hi Wilson, 

I recommend looking at this purchase from a opportunity cost perspective.  How much is not buying the intention journal costing you?  If you are serious about real estate investing, then taking the time to write down your goals and track your progress will be well worth the $40 investment now!  

I have a similar journal that I utilize if you don't want to buy now - let me know if you are interested in chatting. 

I am closing on and moving into my second property today! I have a lot of ideas of what I would like to do to add value, but not sure where the best place is to start.  I am experienced with renovation and I am planning to take on many of the projects myself over the next 6-9 months as I do not have the capital to pay a contractor.  

Some details about the house:

- 3 Bed/2 Bath located in Old Town Scottsdale, AZ

- Tile flooring throughout entirety of house

- New roof installed within last 8 years (passed inspection so not planning to fix yet)

- Carport in large driveway that covers about 20'x20'

- Backyard space that has old brick/uneven rocks and ugly railroad tie rock gardens

- Kitchen (with no oven) that will need a remodel

- Single pane windows throughout entirety of house.  Weird size (~2' H x 4' W) and large floor to ceiling windows (two 3 foot tall windows on top of each other) with sliding glass door on the whole 25' wall to backyard 

Below are the projects I would like to get done in the current order I plan to do them.  Looking for any insights on what to add/change!

1. Paint exterior of home

2. Clean up/change landscaping

3. Build studio apartment under carport (allowing time for permit to be approved)

4. Renovate main bathroom

5. Renovate Kitchen (need help with design ideas)

6. Change windows to R5 energy efficient (Will need for AC costs around April timeframe in 5 months)

7. Change flooring from tile to laminate flooring throughout house

8. Update laundry room (currently open door through the kitchen that is poorly spaced out)

I know it is tough to comment without seeing the property but I would love any and all insights about what order makes the most sense.  Any insights are more than welcome!

I am planning to focus on growing my business.  As long as the numbers work with the policies in place at the time of purchase I am not worried.  I will adjust as needed going forward. 

I currently have an Old Town Scottsdale, AZ property under contract that I plan to house hack into an investment property.  I am new to investing in AZ and I would love to have another set of eyes look over the deal or a partner to come in with me.  I am looking to expand my portfolio and find more deals in the coming months so I would love to build a relationship with anyone interested.  

Some numbers on the deal:

Purchase price: $380,000

Expected monthly income: $2,500

Expected expenses: $2,285

Cash flow (after all expenses): $215

CoC ROI: 16%

I plan to self-manage the property until I acquire more properties in the area.  I believe that with renovation the house will be worth more in the future as well.  Any guidance would be greatly appreciated!

My first deal was an owner-occupied FHA loan because that is all I could afford with my savings. I bought a single family and rented out the other bedrooms to help cover my mortgage and eventually turn a profit. I'm now saving that profit and what I'm saving on renting to cover my next down payment.

I agree with @John Livingston Bullier that you should never compromise on a place you enjoy coming home to.  The small multi-family ensures that you can have your own private space (just make sure the numbers work) and not have to share a house with strangers.  

I think the FHA is the best way to get started, as you will be able to learn a lot about how to manage a rental when you are also living in the building. Watch your mortgage get paid by your tenants while saving up for your next rental property!

My goal is to build a Real Estate Investment company that can function smoothly without my presence in day to day operations.  I am starting down that path by working to get $5K/month in rental income.  I believe once I get to that point I will be able to step back into a part-time role with my day job and focus more of my time and energy into working on building a company.

My long-term goal is to be receiving $10K/month in passive income by constructing a REI company that allows me to travel and spend more time with my friends and family.

I generally dress in nice jeans and a collared shirt at the minimum when I am meeting with a lender, my agent, or any potential tenants.  I want to show them respect, but I do not want to flash any money.

I also drive a mid 2010s Honda Accord which is a vast upgrade from my 2001 Chevy Cavalier beater.  The sedans don't scream that you have money, but they show you are able to take care of yourself.  I say no sense in putting the extra $20K into a new car if you can keep rolling that into investments.  If it's something you want to treat yourself with because you have truly earned it, then do it for you! Not because it will help your image.  

The most important number I look at is my Cash on Cash ROI. The cashflow per door of a house I put $100K into and one that I did not leave any money in the deal could be the exact same, but I would rather get my money out of the deal to work on another one ASAP.

That being said, I generally look for a minimum of $100+ per door with my conservative expense estimates.  I then work with rockstars who are going to help me exceed my projections and raise that cashflow number by lowering my expenses.