All Forum Posts by: Robert Rixer

Most people start as cashflow and then develop more toward the appreciation side. The tough part about appreciation plays is small or negative cashflows in the near term. Most newer investors aren't liquid enough to be able to even consider true appreciation plays and often end up buying C and B- properties.

Not sure how waiting would help. Give as much notice as possible, sure. But just waiting to do the exact same thing 3 months from now doesn't make sense. The tenants likely know they are getting a great deal and the party won't go on forever. 

The 1% rule doesn't account for interest rates/downpayments, it purely looks at the property math. Even tho 0.8% compared to 1% seems small - it's actually 20% lower income. Also,with 5% down, you will have PMI which will further hurt your cashflow.

Put yourself in the sellers shoes. Say you burn 2 months and then decide to pull the plug last minute for any reason, that seller has now lost 2 months of marketing time where a willing/able buyer could have come along. There needs to be an incentive for the buyer to not do this. That's why EM exists. Fully refundable EM serves no purpose.

All about cash flow at that age. Do whatever you can to build income and save up for a down payment. You can do a whole lot more with even 10k and a decent paying job than you can with $0.

Typically you'll have an existing email list of potential buyers. Assuming you don't have one as you're asking this question, you could market it through your social media, paid ads, or turn up to local real estate events and spread the word the old fashioned way

Difficult to pin this down as it can vary wildly even between local submarkets. Especially with low rents and tougher tenants. I've seen 100% variations in mgmt percentages.

I would say the best way is to learn more about the tenant base, the rental income and your expected annual profit and then determine what you'd be willing to make to take on the work/headache of the job.

Doesn't seem particularly attractive on the surface. If you were stealing it then fine but $4,700 on 400k + 90k immediate CapEx sounds like a lot of work for a tough upside.

Very confused. You say it's zoned as a quad but you're looking to re-zone it as a quad? It's listed as a duplex with 2 units currently rented and you're looking to occupy the remaining units?

You can offer whatever you want. If there's a 12-month lease in place, it may not be possible for the owner to perform on that but you won't know unless you ask. From a seller's perspective they may be reluctant, in case the deal falls through and then they're stuck with no tenants. So you should be prepared to put up higher, non-refundable EM. Good luck