All Forum Posts by: Ryan Dossey

The problem with sacrificing on margin for a "great tenant" is all tenants are still people. While they may be great today they could lose their job tomorrow. They could start dating a "bad boy" who likes to hit holes in walls. We screen for the best tenant we possibly can, attempt to serve them as best as we possibly can, and foster a relationship of mutual respect. 

That being said $30/mo in cashflow sure wouldn't get me out of bed in the morning! 

If he closed the transaction that shows that he was satisfied with the work. If he has proof that you duct taped a pipe for instance to stop it leaking.... Sure you could be liable. But all too often buyers just try to get what they can. We had an inspection response where a buyer wanted us to side down over the foundation in an area where it's not common. We kindly explained upgrades aren't inspections. 

First off... Great design. Home looks sharp! 

The issue I'm seeing is a note about foundation repair on a property has flooded. That's 2 major strikes. You would need to look at your contract and determine (if you are pending) if flooding is an excuse to terminate their P & S agreement.  If I was a buyer that would freak me out. 

It looks like you guys are pending? 

First off.. Congrats for having the guts to take a leap into MF.

I'm not sure if Cap Rates in Canada are far off from the US but the only time I've seen such low cap rates be acceptable is on very expensive 3MM+ MF in A+ Class areas where they're bringing in just insane amount of gross rent. 

I personally wouldn't even look at a 5.5 Cap 8 unit. 

Rental rates of $690 a unit have you paying $94,000 for a property bringing in $690. That would be the equivalent here of paying 3x fair market value for a house in the hood. 

I'd proceed with extreme caution if at all. The only way I would remotely consider it is if they were willing to provide seller financing. 

@Sherry Goettler Deal Machine is a pretty neat app. I got to go to lunch with one of the founders. There are applications that will use the Google Street View so you don't have to physically photograph houses... But there is a LARGE margin of error. We get them on our rentals all the time with the wrong property pictures... Seriously defeats the purpose. This is in Indianapolis not rural areas with limited Google Data. 

We run Call Porter an answering service for investors (and are also buy and hold, wholesale, and flip investors) and get to chat with clients about what is working/not working all the time. Around 6 months ago REWW used a print house of Saint Louis and these things were CLEANING up. Similar to Yellow Letters now... They're saturated and are smart clients have moved off of them. 

The unique piece with Deal Machine is that you can get creative in my opinion. I've also heard that the skip tracing on it is halfway decent. 

I think the problem you're going to run into is the "crypto mindset". I have several friends/clients and personally even bought a car with crypto profits (though I'm now out). 

Most of these guys will hold and the smart ones have diverted out of BTC and into alt coins. 

What if they pay a premium of say... 10% and it happens to be on the day BTC takes a 30% dive? 

I think you're talking about an extremely Niche' market. I have friends who have north of 250k in crpto that are capitalizing through day trading on the ups/downs of the market. They are not trying to over pay for houses with it. 

Just my $0.02

This to me sounds like it's probably a "no deal". In my experience most packages are not great. I'm not sure on the specifics of the particular market you're looking at but I would never pay 100k for something only bringing in $700 n rent. If the ARV is 100k and they need 15k you would need to be in at 60k or less per house to be able to BRRRR out of them.

Most estate managers are getting a % of the sales price. So they are typically going to want to max that out unless their is a pressing urgency in the family to sell. 

The other part of the issue is your financing contingency. You may have a shot of swooping them all up for 250-300k cash but if I've got a buyer wanting a discount, using financing, and wanting to tie up all 5... My inclination as a broker would be to pass. 

I would try the "next door" app or seeing if there is a FB group for investor in that market. We've had great luck with both. A lot of investor won't share their contractors. Unlike a banker... A GC can only do so many properties at a time. 

What's the address? Can you provide pics of the property? If it's not selling (even in a flooded area) it's most likely an issue of price if there's no serious defects in the renovation.