All Forum Posts by: Ryan Howell

It looks like it would cash flow well. I may have missed it but I didn't see any vacancy. I would be sure that you factored that in. I also typically assume some up front repairs are going to be needed, but it may depend on the age of the home. Are you paying retail? ARV looks like your purchase price. This is more personal preference, but I like to buy with some equity in the deal so I can refinance later and get my money back, but that doesn't mean it's not a good deal for your criteria.

@Matt Berklacy - Feel free to send them my way.  I'm happy to help.

I would just move in and house hack.  You will learn a lot of skills that will be useful if you move forward as an investor.  You could move back eventually, it doesn't have to be forever, but your intent when purchasing must be to live in it as a primary residence.

I can speak from both sides...I like to go off of key words. For our MLS we can set "or" filters so if any of your list of keywords pop up, it will flag it. Ideally, $/sqft would be great, but at least for us, we can't set it up that way, but if you're limiting the sqft already, then you definitely want a price limit...it is extremely unlikely that "divorce" would ever be in the MLS listing, but "Motiviated", "investor" etc are often there. Don't set a minimum sqft limit as if the heat source isn't there, it may be labeled as zero. Good luck.

I might be tempted to seller finance that one.  For me, I buy for appreciation and cash flow.  Since this is a manufactured home, you're not likely going to get the long term appreciation, you could get cash flow via seller financing and avoid some of the headache.  If you need the money and are okay with whatever tax impact of selling, you could, but you'd want to be sure you could replace it with an equally cash flowing asset.

In my area, the 1% rule is pretty good based on our taxes, insurance, rents etc if I'm getting a 5% 30y mortgage.  Typically, my expenses run around 40% of gross rents.

If those are solid wood cabinets and are in decent shape and you are replacing with the cheaper line of cabinets it that are particle board, I probably wouldn't do it because they won't last as long.  I've tried it both ways.  Now, if the cabinets are decent, I paint them white, put new hardware on them and put new laminate countertops that look modern.  The difference between repainting and new countertops or completely replacing everything is doubtful to see a big difference in tenant rents, in my opinion.  

My advice is to listen to all 400ish podcasts BP has now and by the time your done, you'll know what direction you want to go and enough to get started. A house hack is a great way to get started while minimizing risk and the BRRRR strategy is my favorite method to build a portfolio and scale quickly.

My PM and I agreed on a limit that for repairs over $500 require my approval.  I have a portal that they use so I can see all tenant requests logged, and quotes from their vendors as well, so it is fairly transparent.  I use a larger PM company that manages hundreds of rentals, not just a mom and pop shop  They do walk-through inspections quarterly and take pictures of the condition and if something needs repaired, there are pictures for proof.

BRRRR investing with long term rentals.