All Forum Posts by: Samantha Soto

Property management companies in HSV that I have heard great things about are Rosenblum and Hamlett.  I interviewed both and have had recommendations for both.   Look into those.

@Account Closed construction manager would be a good idea too.  Any criteria I should specifically look for in a construction manager if that's the route we end up going?

We are investing out of state for the first time.  We are hoping to close on a 2bed home and then convert it to a 3 bedroom.  It's a newer home with a large loft area upstairs that could be turned into a 3rd bedroom.  We would not be able to rent it until the work is done.  I have two questions.

1) How long would something like this take and how much would it likely cost? Rough estimate.  

2) Since we are out of state, how do we make this happen?  Do we hire a property manager first, even though it won't be rent ready so there is someone to manage the work being done?  Do we hire a contractor first, get the work done, and then get a property manager in place?  

All answers are appreciated!  The BP community rocks!

@Christy Harris I had never used GRM before. Another tool to add to my box :) It's more or less like the 1% rule, no?

@Matt R. Touche!  I could buy up properties like candy in Detroit and the reality is it would be a poor investment.  I have relatives in Redondo Beach and wish my family had the foresight to buy properties there when the going was good.  Sometimes California feels like it will never be attainable to us.  It's crazy considering my husband and I are both working professionals with a six figure salary.  We are trying to keep our focus on good locations.  In the end we may end up compromising on our ROIs in favor of stability and the hopes of appreciation.  Obviously, we can't be in the red either.  Property will need to at least break even.  We are still working out the kinks.  We also don't want to bank on appreciation and then not see it come to fruition.  The first deal is scary.  I'm sure we will get better at this as we go!

@Wes Brand, are you using the terms CAP and CoCROI interchangeably? I thought CAP rates are more for commercial real estate. What I think you are saying is that 5% is fine as long as it's a good neighborhood with anticipated appreciation. If so, I feel relieved. Things were starting to feel so black and white with the numbers that it seemed like nothing was going to work.

I really appreciate all of your perspectives.  It is one thing to read the books and listen to the podcasts, but your perspectives and the reality of investing is what is helping me most!

Thanks @Rich Baer! We are going to start looking more at these properties, especially ones that have been held for long periods of time.  Wish us luck.  Submitting two offers this week.  

What are the pros and cons of buying foreclosures from a bank?  How much do you need to put down for an earnest money deposit?  Is there risk of losing that deposit if you back out due to finding a major issue with the property during inspection?  Can you negotiate with the bank?  Or is the price set in stone?  Any insight is appreciated!  I'm as green as they come!

If you were marketing your property that would be one thing.  But marketing an unrelated business...in my mind a sign in the yard would be tacky.  Just my 2 cents.  

Thanks everyone!  I appreciate the support and advice!

@Mike Hanneman that's the theory I was working with!  It likely won't work on new listings...but I figured anything over 30 days is fair game :)  

Hello everyone,

I'm new to this and working on acquiring my first deal along with my husband @Jose Soto. We are looking for properties in the Huntsville, Al area. We have primarily been looking at SFR. We have been using the rental property calculator and have been trying to make offers that get our Cash on Cash ROI to 11%. The hard thing about this is that many of the properties we are looking at are below 100k. For example, one I am looking at is listed at 87k. In order to make the numbers work for 11% I would need to offer 53k. It just seems highly unlikely to me that anyone is going to want to accept such a low offer. I even feel bad asking realtors to make these offers...like they are going to think I am wasting their time (except @Christy Harris, she has been amazing and hasn't laughed at us one...at least not to our faces!)  Anyways, I was curious to hear from the community, specifically people who have SFR's....what is the typical cash on cash returns that you get for your properties?  Do you have any with lower cash on cash ROI's that you are still happy with?  

Any words of wisdom for this newbie who is eager to buy but also wants a good deal?