All Forum Posts by: Brad S.

@Lindsey Voorhees  Sorry for your loss :(

I'll try and add to some of the good advice already given here. First off, for almost 20 years, I have owned multiple rentals in all but one of those areas, and still have a few. I also live in CA and have a PM on all my rentals. I have only seen a couple of my rentals (in TX and other states) in person, and OOS (out of state) investing doesn't bother me at all. I have had worst experiences with PM's near me than I have had with my OOS rentals.

With that said, I chose to invest in OOS RE, but you fell into it. While that is a positive problem to have for you, I would let it sink in and decide what general long term goals you have and how and if this scenario fits into them. 

As for the immediate issue - I would assess the vacant house scenario and decide what is the best course of action. In general, I like the Mansfield market and am regretful for a rental I previously sold there. The schools in Mansfield (at least where my house was) were very sought after and helped the house rent quickly for a good amount. But, I am not sure if that is the same in the current market or the area your house is in. 

Generally, my PM there has mentioned the rental market is fairly soft and difficult to maneuver within, at the moment. So, I would be cautious in whichever direction you go. You could call up other PM's in the area telling them you are considering changing PM's and ask their opinion on the current rental market (rental rates, vacancies, current supply-# of competing available rentals, length to get a tenant, etc). 

As far as your PM, they may be fine, but talk with them and get a general feeling for them to see if you may want to consider an alternative PM. I am happy to refer you to mine, if you like. He is a really good guy, honest and has always come through for me. 

Generally, I would try and get an idea of the quality of the properties. 
In other words,
* are they in good areas that tend have steady demand (purchase and rental demand)? This may suggest good potential appreciation (both rents and prices). You may also have a better tenant pool in desirable areas.
* are they the best properties to own in those areas? (size, bed/bath count, year built, location, etc). 
*  I would check the tax assessed values compared to market values, to see if there is a potential to reduce your taxes in the future. Unfortunately, the deadline to appeal just passed on 5/15/25, but that might be potential increased cashflow next year. Tax assessments notoriously are higher than they should be there. I typically appeal my values most years.

Anyway, there is a lot more specifics that I don't have time to get into, but generally, I would assess and categorize the properties for quality of investments and maybe consider selling the lower quality ones and pay down the higher quality ones. That will increase cashflow, as well as keep you poised for good future appreciation. 

Or you could also decide to liquidate them and move the money into a different market with good potential or other investment vehicle/s, etc. I know it can be overwhelming, but a lot depends on your ultimate goals.

By the way, a quick internet search for your PM does not show great reviews Yelp - 2.1 from 14 reviews. That doesn't necessarily they are bad, but just a caution.

If you want my PM referral or to discuss my experience with my OOS in that area, etc, just send me a private message. There is too much to type on here. 

Congratulations! She sounds like a great woman!

I would actually back up a little and get clearer on what your long term goals are. Maybe you already know them but didn't say them here, but in my opinion and experience, it is more important to have your goals relatively clear prior to investing your first penny.  Example: If your goal is to have "quality, reliable" cashflow in 10-15 years, then you can backward engineer that scenario and see what might best be suited to hit that goal. 

And a 4-plex priced at significantly below the national median SFR value, suggests a less-than-average desirable market which may lead to lagging appreciation as compared to other potential investments. And therefore, may not adequately help you reach your goals within your timeframe.

It sounds like you might be equating being ‘risk-averse’ with picking lower-priced properties, but ironically, that can sometimes lead to riskier investments. Just because a property is cheap doesn’t mean it’s a safer bet—it could mean slower appreciation, higher maintenance, or a weaker rental market, all of which can make it harder to hit your financial goals. Managing risk in real estate isn’t just about avoiding expensive properties—it’s about making smart choices based on market trends, demand, and long-term stability. A well-thought-out approach helps avoid investments that seem ‘safe’ at first but come with hidden challenges down the road.

I have bought rentals with very high cashflow returns (45% on paper), only to have more hassle, higher costs, underperforming, and a difficult time disposing of them which eventually sold at even or a slight loss as compared to when I purchased them. And this was over a very long time period. And by the way don't believe anyone that says rents always go up or anyone that makes increasing rents an important part of their proforma. Those properties I owned, actually precluded me from getting other financing also, which created more challenges.

Bottomline is Price ≠ Value (Price does NOT always = value).
The majority of seasoned RE Investors will tell you that wealth is built with appreciation. Then you can exchange your appreciated properties into well-performing "quality and reliable" cashflow properties and not get caught up on the ROI.

First off, Congratulations on your investment. Those are some amazing #’s in that short period of time. You didn’t mention the property or deal specifics, but for many deals in the recent years, there have been amazing and unusual gains due to multiple unnatural circumstances. So, my first caution is it would be healthy not to expect similar results on certain real property investments/deals in the current and near future cycles.

That said, there are multiple considerations and clarity needed, before I would act on any investments with your equity. Just saying I have a lot of equity and want to make money with it, is not enough to make prudent decisions. Some considerations (in no particular order) are:

What return on your equity are you currently getting?

What would the cost of the equity be to you? Mortgage, HELOC costs and terms, etc. Including monthly obligations and who will pay them, etc. Remember, you don't have $965 of cash to invest, you have equity, which will cost you money to access. Example: If you take out a loan for 7% you would want to make more than 7% to make it worth it, and probably significantly more. And if you are doing a short-term deal (flipping, etc.) what is your appetite for risk? What happens if you lose on it, you now have an additional liability, not just a loss of money.

Are you planning on keeping the current property or exchanging it (1031) into something else? What is the current return you are getting and what are the projected returns or plans with it, etc?

What is your real estate experience (generally and specifically)? Do you have experience “flipping” or managing rehabs, or hands-on? Are you proficient on market research and analysis? Etc, etc, etc.

What are your goals; near, mid and longterm? Are you trying to build up to some monthly cashflow # (i.e. $10k month net) or an equity # (i.e. $10 million equity), etc. Are you wanting to replace your job and do REI fulltime or just part time investing, or? Also, there's much to delve into on of those scenarios, like what type of cashflow or investment do you want, etc. residential, multi-res, small multi-res, commercial, industrial, etc.

There seems to be fewer deals around these days and this typically benefits the more experienced and skilled investors but there are always multiple investors that get “tripped-up” in these markets due to them relying on recent “fortunate” market circumstances only to realize the markets cycle and they weren’t prepared or didn’t underwrite properly to account for unforeseen potential.

There are more considerations, but this is a start. OF course, you may have all this stuff figured out, but the original post was vague.

Looks like you got a great deal!  Good job!

And as you found out, you get 0% of hits that you never swing at! In other words, you have to ask for what you want. 

While it is important to take the seller into consideration, you need to make sure it fits within your parameters first. I look at it like: How much is it worth for you to take on someone else's problems/issues. 

Regarding if this is legit. Maybe, but It is most likely just a fishing post from an inexperienced investor, to add to their list of deal suppliers. Maybe they learned of this CL technique in an investing program or something. This is not how most reputable, experienced investors do it though. They already have the connections or reach out directly to agents to make connections. They also know how to source deals themselves. Your best source of connections in the real estate investing world are right here on BP, through other realtor referrals, and from meetups and investment groups. 

As a newbie, it is easy, and common, to head down multiple paths chasing shiny bright objects, with many of those paths just leading to time wasting and increased experience in learning what you don't want to do. Best advice is to keep exploring aspects of the RE investing world and decide which feels right and best for what you want to pursue. Then focus on those aspects and learn as much as you can about those. And do your best not to let the lack of resources dictate your focus or goals. I have done many deals with my experience alone and little or none of my own cash. "If you find it, they will come." Meaning, the most important part of a deal, is the deal itself, if you have a deal, the money will appear. I know that's simplistic, but it is true.

By, the way, that CL post was from an Anchor Loans deal in Sherman Oaks back in 2017. It is very unlikely it has anything to do with the person who posted in CL. Very easily found with a Google Image search.  https://www.instagram.com/p/B-xDg-Kj8T6/

Basically, I agree with most of the responses, Bottomline, it's best if the repairs were done with all required permits, inspections, plans and engineering, etc. And all that should be verified and verifiable to future buyers. Photos before and after are always helpful also. 

It also depends on the extent of the foundation damage and repairs, I have done minimal slab crack repairs on flips and disclosed to buyers, without any issues, and I have also done more extensive slab repairs with plans, permits and inspections, and also disclosed to buyers, without any issues. 

Actually, damage discovered and properly repaired and disclosed can show the house is in better condition than similar houses, which may have undisclosed or undiscovered issues. One of my last flips was one of the latter. I had the foundation cracks repaired and tied together with engineering plans and permits, and also had to completely redo the pool and fix the cracks, and recompact the entire rear yard with geological engineering and inspections. Along with the complete remodel, those verified repairs ended up selling the house in about a week. The buyers had just cancelled escrow on another local house which had previously undiscovered potential foundation/yard slippage issues, which were found out during inspections. While my house had all those issues addressed, repaired, documented, and disclosed. This contributed additional appeal and incentive to the buyers.

Also, it is always a good idea to talk with local experts. Seek out some of the top active Realtors in the Subject's market area and ask them. They know better than anyone.

......Oh, and you can also get some of the better deals when buying those properties, as long as you have a good idea of the potential extent and cost of the repairs and plug that (with a healthy contingency) into your proforma.  Many people, including investors, won't want to deal with those properties.

What Bill said and:

First thing to do is to evaluate the appraised value. Do you think it is a reasonable and reliable appraisal. If not, do you have actual factual data to use for an appeal. In other words, did the appraiser not include any relevant comparables and/or data/facts, that would be better support for the Subject in the market. Unfortunately, If there are no other verifiable facts to support a better value, than it is usually futile to appeal based on opinion and/or interpretable characteristics alone (i.e. the Subject is in superior condition to this comp and therefore, it should be valued higher, etc.). But, it is possible the appraiser missed some better data.

What it sounds like you are asking is, how to get above average returns in today's RE market. And as Robert Kiyosaki once said when asked how to get above returns ... "Don't be average."

The average investor is probably looking at the past 4-5 or even 10 years and thinking that is how the market works and why isn't it still working the same way. The experienced investor sees the cycles and how, especially the past 5 years, was an unnatural anomaly semi-manufactured by the powers that be, which has altered those current cycles somewhat. The good investors learn to pivot and see where the opportunities are in current markets, or decide to sit-out or be patient, while preparing for their preferred market conditions.

Some of the strategies which are still working today seem to be: value-adds - finding a way to add value to properties (rehabbing, additions, repositioning it in the market, etc). Building/new construction - learning how to build reasonably and source properties which can be razed or find empty buildable lots for a reasonable price. That's a start and I am sure there are others.  

I personally have a couple of buildable lots in a very competitive market, that pencil out to good cashflow after completion, even if I am able to pull all my money out, and also have the potential or good profit to exchange into a better cashflow market, if I choose.

That's exactly my first reaction reading similar posts. My guess is you (the OP) really don't mean 50 units, but are after more of a cashflow goal, etc. Owning 50 bad units, will probably not get you to your goals. I have had multiple units in the past that dragged my down a lot more than propelled me forward, and I was happy to dump those. I suppose it could be more of a semantic thing, but seasoned RE investors understand it isn't all about the unit #'s, especially when it comes to section 8.

Well, I can't say specifically for RR, but I changed my Austin condo unit to str a couple of years ago. I was hoping it was going to perform well, since it is in a lakefront project, just South of downtown. I also rehabbed it prior to going str. It didn't do that well, about 70%-75% of ltr. I did check airdna, mashvisor, str mgt company estimates, etc, prior to going str and I think I was pretty realistic. I did have it managed by a company that only does str mgt and thoroughly checked them out prior to signing with them. I do think they did a good job, but I did find out that at the time, Austin was overrun with 1,000's of unlicensed str's which drastically added to the available str inventory. So, I am thinking that had something to do with my unit under performing. I ended up going back to ltr.

But, maybe RR is different. Good luck.