All Forum Posts by: Rich S.

I've heard of landlords giving tenants a bonus if they have the place show ready and move out with enough time to move in a new tenant with no lag.  I think your market is the biggest factor in this.  I'd have stock pictures of the place while vacant in rent ready condition as that will do a lot to paint a picture for future tenants.  If they can see those and see the outside/area it is in, I think that helps make people feel comfortable enough to get a good idea if it will work or not.  It will get you to the stage that folks may apply and can be cleared pending they agree to rent the place.

Like @Derek Carroll mentioned... you don't need another post about fixing your credit and getting a job.... but I think the folks that tell you to forget about real estate investing for now are wrong.  A lot of the greatest things in life are a result of timing... many people have met the love of their life because they happened to be in one spot at one given time.  Folks have landed great jobs because the right person left the right job at the right time, opening the door for them... my point being, if you forget the real estate game, you may miss the opportunity to get in that would be the right time for you.  Everyone has done it differently and in my opinion the folks that post the most on the forums are the ones the success has followed a more solid and strategic path... get a high paying job, cut costs, save, etc... all of these are good things, but for some the hill looks too big to overcome.  You don't have to take someone else's path... you can make your own.  Find a way to do all you need to do, while staying in touch with the game... don't set it aside.... many things in life that are set aside, never get picked up again.

I'll put a different spin on this one. I agree with many that getting your FICO up is a great tip, it can look insurmountable I'm sure. In my opinion, don't focus on the score, focus on the habits that improve the score. I would work to find another investor that you could potentially work for and learn from. It will help you learn the business, can provide income and help you network with other folks in REI. I would imagine many contractors and investors are always looking for folks who have extra motivation.

I truly think for many folks in our society today they need a WOW moment to really get them going.  The idea of 5 bucks here and 10 bucks there and inching their way to financial freedom the way many of our parents and grandparents strived to do it is too much to undertake, so it leaves them on the sidelines.  I'd try to find the investor you can work for, to generate money, while improving your score while at the same time, still searching for ways to find a deal to get started.  The lift you'll get from the first deal will make it easier to grind through the other things.

Good luck!

I’m relatively confident in my numbers. The bank feels the $65K valuation once rehabbed is conservative. The contractor I walked it with is experienced in the scope of work and even if it’s a bit more than estimated I feel good about it. The community has a strong rental market. It’s a town of about 5,000 with manufacturing and agricultural jobs. In some research I’ve done inquiring on properties, seems hard to land a good rental because of demand. I trust my numbers and feel really good about it as a rental, but the quick exit with cash from a flip sounds appealing so not exactly sure which way to go.

Good day all. Looking for thoughts on what you would do in this scenario. I know folks experiences and levels of REI are all over the map on here, but considering the following set of goals and potential deal, curious what folks would do if they were starting today.

GOAL- To develop a portfolio that generates 10-15K per month in cash flow by 50.... I'm 37 now. The basic goal is to provide passive income to allow for more freedom of time down the road AND a vehicle to provide for retirement income along with long term wealth. They way I see achieving the goal is SFH or small multi unit properties, eventually into larger multi unit properties in order to have more doors with less roofs.

I foresee flipping a few properties a year to generate cash to acquire buy and holds along with the BRRR strategy.

The DEAL- low price entry home... After walking it with a contractor I trust today and speaking with the agent, I think I can acquire for right around $20,000 and with about $20,000 in rehab, I'm fairly confident in a $65,000 appraisal/sale.  Option 1- HOLD/RENT- I've found a local credit union who would do a 70% cash out on the property.  If numbers worked, I would finance out all the money, with a potential for an extra $4,000 or so.  I'd have no money in the deal and cash flow approximately $300/month after accounting for all expenses, vacancy, cap ex, etc..  OR Option 2- FLIP- basically make approximately $20,000 on the flip portion to put into another project. 

What would you do?

Also, how has an either/or changed our rehab decisions?  Just thinking if I were to rehab to rent I'd want solid finishes that hold up, but nothing crazy cost wise, but I'd want to be able to pull all my money out so which areas will I get the most bang for my buck on appraisal?

Thanks for any and all feedback.   

There is no doubt many is this thread are right in that track record makes everything easier. The 203K loan is a good strategy because it does bring a 3rd party in to verify numbers and provide information to hopefully ease your parents worries. In my opinion, there are lots of ways to get things started, you just have to find the one that works for you. There are many folks who have gotten their start in REI by doing something most said couldn't be done OR taking a risk many others wouldn't take. It is all easier if you have high W-2 income, lots of savings, etc. as it opens up more doors, but you don't have that... my advice keep working to find the strategy that works for you, just because it doesn't work for others, doesn't mean it doesn't work.

One more thing to add... if you are a newbie, don't mind the full leverage folks vs. the all cash folks as they battle on many threads!  They both believe in their strategy and some will battle to the end to defend it.  

@Eric James  Agreed you shouldn't take anything anyone says as absolute fact.  I've spent a lot of time on the forums learning and don't really have much to contribute, but I can say in that time, I've identified the small group of folks that I really value perspective from and the larger group of people that are selling something, argue to death that "their method" is the absolute best or whatever.  This site is a great wealth of knowledge, just have to sift through it to find what works for you is what I have found.

@Jay Hinrichs

@Henri Meli  thanks for the encouragement.  I'm hopeful to put all that into action soon!