All Forum Posts by: Shiv Jey

Can you expand on this? The 150% in escrow means...the costs required to make it POS compliant multiplied by 1.5 is kept in an escrow and cannot be used for repairs but withdrawn only after the repairs are completed? If so, how are the costs determined? Is this done during the closing? Who pays for the estimates to be done? How is POS compliance measured...does the seller alert the township who then inspects?

What are people’s thoughts with multifamiky in the Cleveland suburbs? Is it not really a multi family friendly culture where tenants would rather pay more for an sfr? It appears there’s a few available in clusters that have been on the market a while and wondering if there’s a reason for that?

How many markets do you guys focus on at once?  I have two, Huntsville and San Antonio.  I don't want all my investments in one place, but I don't want to spread myself too thin by going after 20.  What do you guys do?

I hear great things about Memphis but without a boots on the ground guy, I've been wary.  I've explored KC and Tulsa on the surface.  What's your go to market?

When you guys purchase from a wholesaler...how does that work?  Who draws up the contract?  Do you use your own realtor or lawyer?  I'm not sure if I trust the wholesaler to draw up the contractor and help me with inspection and appraisal as an out of state investor.  How do you guys do it?

Ex:  Wholesaler X from Utah has a house to sell me that he's rehabbed and ready to go.  He wants 48k.  I do the numbers, it all checks out.  Great!  Now I want to make sure it was rehabbed well and there aren't lurking dangers, so I want a good inspector to look over it.  And an appraiser to appraise in order to finance it of course.  I do my own comps and ensure that it's well-priced.  All checks out.  I tell him I'm interested, let's do it........Now what?

I can't tell if it's analysis paralysis or if I'm too stringent on my analysis or just not finding good deals.

I'm following the 1% rule. I budget 50% for expenses not including mortgage, but including taxes, insurance, capital expenditures, etc. But for many properties, that's leaving me with a 5-6% cash on cash return, and a 9% total ROI.

For example, 80k house rents for 1k/month. Acquisition costs including minor renovations and 25% Down is 24k. Rental income 1000 minus 50% expenses is 500/month, minus mortgage payment 330 is 270/month. Per year that's barely 1200, which is about 5% COC return!!

I don't need the cash now by any means...my plan is to build a rental portfolio over the next 10-15 years to have a passive stream of 25k/month.  And assuming only a 10% cash on cash return on investments, I'm prepared to put down what I need to.  Problem is, the numbers just don't seem to work out ever on a spreadsheet!  Moreover, with interest rates going up, 5.2-3% is typically what I'm finding, the numbers are even worse!

I'm not looking in Washington AT ALL...it just doesn't make sense.  I am looking at Alabama and Texas mostly.  I dabbled in Milwaukee but again can't find the returns.  Oklahoma, same deal.  Memphis I have no boots on the ground guy and am afraid of ending up in a warzone after hearing numerous horror stories.  Heck, at this rate, I'll take an 8% return because that's what my traditional investments are averaging.  I've also connected with wholesalers but even their deals are just too short to make it work.  

Because it's a long-term strategy for me and I don't need the cash flow immediately secondary to a relatively high paying job, should I be looking at the ROI instead of the COC? Is 50% expenses, even for a relative turnkey, too high? I've talked to a couple lenders and they're all offering between 5-5.5%, am I missing out on better rates? My newest strategy is get conventional lending, fund the rehab myself out of pocket, and STILL The returns are <10%. I can see flipping making more cash but that's just not in my cards right now time-wise.

People have been telling me deals are easier to find and returns are better when the market slows down/crashes.  Well, I'm watching the stock markets fall, interest rates go up, fears of inflation, and crypto crashing (not sure if that's related) and it all points to perhaps a slow down coming which excites me.  But if interest rates keep going up, that only makes the analysis that much harder, unless prices fall significantly and rent rates don't fall as well.  Am I missing something?!  Any help would be appreciated!!

Thoughts!?

Please send me details at [email protected]

Please send me more details and pictures if available still.  Is it being professionally managed?

Please send me details if still available to [email protected]

Please message me I'd like to hear more about what you have to offer.

I'd be interested in exploring what you have to offer.