All Forum Posts by: Satyam Mistry

@Account Closed Thank you! I have not targeted these markets specifically. One of the properties I recently closed on is very close to a large air force base that I have seen impact the need of housing in the area. Which markets do you target and do you invest locally or out of state as well?

@Cameron Cocchi Have you done many flips in the past? These are not small numbers and it is quite a large project financially to consider. I think it is important to consider factors such as what is another exit plan you would have for the property if it does not sell as fast as you expect. At these numbers renting it out does not seem like it would make sense, but maybe budget for it sitting in the market little longer than expected. Would recommend having it professionally staged when complete as well to help when it is put on the market. 

Hello, I have made a couple previous posts, but realized I had not made an official new member introduction post. My name is Satyam Mistry and I am a real estate investor in the Omaha area where I also live. Primarily looking for buy and hold single and multi family properties. 

I currently have 8 properties that are single family and am self managing them which has taught me a lot. I am actively looking to buy more properties and continuing my real estate journey. Have been very happy to discover BiggerPockets and take advantage of all the great resources it has to offer. If you are an investor in the Omaha area please feel free to leave a message to connect!

@Connor Streit Hello Connor, my name is Satyam and I am an investor in the Omaha area. I'm getting close to 10 properties and currently self managing them which has taught me a lot. I am actively looking to add more properties throughout the year. There is so much to learn and like you mentioned BP is such a great resource. Let me know if you want to meet up some time over a coffee or game of pool. 

@Nakul Ravi Hello Nakul, Bennington and Elkhorn are great up and coming neighborhoods with a lot of newly constructed homes coming up. I would suggest looking at Millard which is an area in Omaha that also has a desirable school system and houses that are around the $150k range that will rent for $1500. Start searching on the major sites such as Zillow and filter to see what is available for rent and then save those searches so you can track how much those homes are renting for and how long they are staying on market for. By consistently doing these searches and seeing what is for rent and what is for sale and checking the pictures for each of those properties you will start to get an idea of the market in Omaha. You can then also find an agent in the area that can help guide you. Just be clear in explaining to them what your objectives are. What market are you currently in?

It is great so many people are doing well in real estate, but thought it would be good to see the flip side and discuss some of those particular events that changed the way you handle your real estate business!

- What is your most memorable loss or hardest lesson you had to learn?

- Was that situation unavoidable or something you could have prevented with more due diligence?

- How did these lessons change the way you do those certain things in particular?

@Anthony Gayden Hello Anthony, nice to meet you. I am seeing the same trends, thank you for sharing. Would it be possible to know which local lender you are using as that 15% down is lower than many of the banks in the area that I have spoken to. Do you manage your own rentals? I am closing on 2 SFR's at the end of the month, 1 in Millard and 1 in Bellevue. On 2 other SFR's in Omaha I am waiting for another 2 months to hit the 6 month seasoning period and then will do a cash out refi and get a conventional 30 year loan on.

I am currently finding the properties online and the promising ones usually have 10+ offers within 24 hours and are going for over the list price.

Hello, curious to know what strategies buy and hold investors are using in a hot market and through what sources. I am currently in the Omaha market. Not doing any paid marketing at time being, but spending more time networking. 

1. What kind of properties are you buying?

2. In your market are you seeing more opportunities with single family or multi family properties? If the numbers on multi family are not what you are looking for do you still look at single family opportunities?

3. How are you finding these properties? MLS, off market, short sales, foreclosures, auctions?

4. What terms have you been financing at and what cash on cash % return do you look for on 20 year or 30 year terms?

@Tony Wallis Hello Tony, a few things I use in my market are below for a quick 5 minute analysis, I apologize if some are repeated:

1. First thing I look at is price. I primarily look for properties in the 100k to 175k range and usually am looking for something that has some value add potential or if at market value that it is turnkey, meeting my other criteria, and that I am not paying over market value. I look at recent sales of similar homes in the same neighborhood if the price point and pictures (if available) are of interest. I know for zip codes that are of peak interest to me by having looked at so many properties on the MLS everyday so just looking at the zip code helps as well.

2. Mentioned earlier as well, but I use the 1% rule as a general metric meaning the rent should be very close or over 1% of the purchase price + rehab (if not turnkey).

3. Good neighborhood to give me stability and confidence that the property will appreciate over time. 

4. Usually look for properties that are not too large say 1000 square feet to 2000 square feet as these are the primary sizes that are being rented.

5. Go on the county assessor site and check out recent sales of the property as well as property taxes. If it was sold few months earlier it was most likely bought by a house flipper and just something you should keep note of as it would have usually gone through a decent sized rehab recently. 

Best wishes on your search!

Hello, I am curious to know how investors are continuing to grow their rental portfolio in a very competitive market. I am in the Omaha market. I have recently started to get more active in networking with other agents, investors, and the real estate community in general and am sure over time this will help bring more leads and off market properties to attention that are worthwhile. The properties that I currently have were obtained while they were on market. I am not currently doing any paid marketing.

- For buy & hold investors are you willing to get less initial value add return on a property? For reference I recently made offers on a couple of dated properties that needed to be cleaned out and updated but the numbers got to a point to where after I did the $25-30k in updates the additional value add equity would have only been around $10-15k. These would be long term rentals for me and I am thinking that in 10-15 years as the property continues to appreciate would I have minded the lower value add equity that I initially earned? Do you go after those properties where you do a rehab for minimal return, but you know it is going to be a safe solid rental for many years and you add it to continue to be able to build your portfolio in a neighborhood you are comfortable with and are paying down an appreciating asset while creating cash flow. I am currently looking for properties that do have around a 12% cash on cash return and provide around $350 in monthly cash flow after all expenses/maintenance/capex/vacancy.

- I usually look for properties that have value add potential, but also competing with flippers who have a paid staff that need projects to keep busy with and are ok taking lower profit margins as they need to continue to have revenue as well as contractors buying doing rehab themselves do you also look at some more turn key properties that you would not get initial value from, but that is meeting your other requirements such as a 1% rent to value position, good neighborhood with appreciation upside, and again adding an asset is going to appreciate and cash flow for you.

- As a newer investor that is not at the level yet where many deals are being brought to them, but is eager to continue to build their portfolio with long term rentals what would you recommend their strategy be? I do not currently have any experience with short sales/foreclosure/auction type properties, but am eager to learn more about these opportunities as well.

Thank you for your input!