All Forum Posts by: Ryan Taylor

As some others have said, drop the 50% rule out of the equation. Exactly the point you're bringing up about it is why it's not a helpful metric--it really doesn't tell you anything. Stick with actual numbers.

If the property you're talking about is in a good solid growing neighborhood and the property doesn't need any work, this looks like it could b ea good deal. But there's a lot more that goes into saying whether something is good or bad, not just the numbers. These numbers look good IF there are certain other low-risk factors about this property. But if it's in a rougher neighborhood and/or the property needs a lot of work, the numbers aren't great. And lastly, how is the purchase price compared to market value? That's yet another factor.

BP runs regular podcasts to teach this stuff. As I recall Brandon Turner has some. He also has a book called Managing Rental Properties. It is impossible for us to offer guidance or opinions unless we know what is included in those monthly expenses. If they are numbers from a listing then I can tell you it is way worse than it looks. 

Don't worry about 'rules', look at the actual numbers.  Does this include vacancies and money for repairs?

@Ryan Taylor There is a meetup the 2nd Thursday of the month at 6:30pm at Direct Appliance on McHenry in Modesto. Hope to see you there! 

@Jenell Poncabare

Awesome....thank you for the info on that. Look forward to it 😁

@Ryan Taylor Mainly depends on the individual seller. Maybe after the TRR’s & something big w/ your inspection comes up that wasn’t noticeable during your walkthroughs.

In this market, making an offer initially asking for CC’s will make your offer not as good, especially in a multiple offer situation. They’ll review the best offer based on whatever price, terms, type of financing, etc. In this market most buyers are willing to pay theirs, offer prices are much higher - with appraisal gap contingencies, waived inspections, all cash, or a combination of any of these based on the buyer all in order to hopefully get an offer accepted.

In our market, the supply is low and demand is high and i’m assuming it’s the same for yours. You can always ask, it may just take a lot longer & a lot of tries to get an offer accepted for homes that hit the market immediately. If the home has been on the market a longer time, then at that point, you may have a higher possibility of it working - probably because the home as some kind of issues, whether location, being overpriced, structural, etc.
 

I'm only seeing seller concessions with off-market deals. If you're offering on MLS properties, it's likely not happening because there's too much competition, but that's something to discuss with your realtor as they know your market better than I do.

What I'm advising clients is to get the property under contract and then see if sellers will kick back a few bucks in exchange for a slightly higher purchase price; however, you need to be careful with that, too. First, they could always say no, and you'll still have to have the cash to close. Second, if you push the purchase price too high, you risk the appraisal coming in too low. Again, consult a good real estate agent to discuss the strategies available to you.