All Forum Posts by: John Powell

I've flipped homes and hold both short and long term Rentals and am a licensed realtor. I see a need for affordable housing in a rural area. Habitable stick build homes are all $250k+ in the area. Lot zoned for mobile homes can be purchased for $10k and developed clearing, grading, septic, power and well for $15k. Bringing total lot cost to $25k ready to pull a mobile home onto. New base model double wide runs about $60k deliver and setup. Bringing project cost to $85k. In the area 20 year old mobile homes are selling for $150k+. Financing for consumers to do this process has dried up according to the local mobile home lender. My local partner and I can fund this personally with plenty of room to spare. The consumers can get a FHA loan after 90 days or 0 down USDA loan on new untitled mobile home on land which is the product I intend to deliver. What am I missing what risks do you see?

@Kenneth Garrett this is the clean option and the better option for PL and the investor. What experience or relationship do you bring to the table that would make a PL feel comfortable with lending you 100%.

@Waylan Liu you said your goal is cash flow. With $24k/ yr in gross income on paid off Homes and personal income can you still expand your portfolio at a reasonable pace without refi? If 2020 thought us anything it would be that having a strong financial base is very important. How many months could you go vacant or without rent on the paid for houses vs if they were leveraged? That being said it is really hard to sit on significant equity like that if you see good deals that you are missing out on. I pulled all the equity out of my personal home this year and bought 2 more investment properties that cash flow enough to cover the Mortage on themselves and my primary residence. And I still have cash but deals are getting scarce.

@Ray B. In the listing you said furnished is an option. Is Air bnb an option for the winter then go back to long term rental if you don’t like air bnb. You will be surprised at the demand in most areas returns can be very high. air bnb also has a monthly option so furnished monthly rental would be a good possibility.

@Audrey X. $1400 is actually low for a single family house in most of Cobb (except certain parts of south Cobb) the house I rented smaller and older $1400 was pushing the upper limits. Yes you can buy for cheaper if you can find a habitable house under $200k and win the bidding war. There are typically multiple cash offers on rentable homes under $200k the two I bought this year I was in multiple offers and only one because I was cash and an agent with a reputation for closing deals I personally offer on. There is a large influx of people coming from covid restricted states looking for some of the freedom we enjoy down here. Tenants in both houses I acquired this are from up North. I have noticed that locals seem to think rent is too high (because 2-3 years ago rent was significantly lower) .

@Harsh R. I’m in the space you are talking about real numbers. Deal I personally did this month 4963 Ross rd Acworth GA 30101 bought at $164,500 rent ready at purchase. rented in 28 days for $1400/month. Tenants pay all utilities. Property is actually zoned commercial and in an state opportunity zone so there is a huge upside potential. Demand for that type of product is very high.

@Sean T. I would venture to say the majority of 1031 exchanges are done by individuals marking over $400k. And if printing lots of government stimulus is the plan then $400k comes a lot quicker in a few years than it does when the limits are put in place due to inflation.

@David Pere I did skills bridge when got out of the Air Force and was able to work at the brokerage leadership level of a large brokerage for 60 days as an intern while getting mil pay and benifts to help me transition out of active duty. Super helpful and definitely helped me land on my feet in the civilian world.

@Justin Carmack this advice is on point! Gaurd or reserves if you choose the military. I did it the hard way did 2 semesters of college before the military and just wasn’t into or ready maturity wise for college. I joined Active duty and did 13 years and got my degree for free. I discovered Realestate 5 years in. The stable income and zero debit made it very easy to expand. After 13 years in the Air Force I switched to the reserves to do full time Realestate. If I had to do it over I would go straight into the reserves in a flying squadron that has enlisted aviators (excellent ability to go from enlisted to officer after your degree) As soon as you a fully trained in your job get after the degree and in you free time learn Realestate. The quality of people you will be surrounded by in a reserve flying squadron is typically very high lots officers and who also own business or are high level in their chosen profession. This is just one possible path based on my personal experience.

Can you do a much smaller scale rehab? Mabey a 5k rehab will get you $800 in rent which would make the numbers much better.