All Forum Posts by: Matthew Masoud

I'm trying to furnish these apartments for a low price but keep them looking good. After 26 furnishings I think I got my furnishing costs zoned in. I was wondering how it compares to you guys.

All prices include labor. Prices do not include appliances and unit renovation

1-bedroom Apt: $2,800

2- Bedroom Apt: $3,500

3 - Bedroom Apt: $4,200

I've only done MTR on apartments so I'm interested to know approximately how much are you guys spending on furnishing apartments but also single-family homes.

My latest furnishing:

What's in your lease? I'm assuming the lease does not allow sublease.

Will he background check and credit score check these sublease tenants? Will he be responsible for their damages?

You're right it is sticky. I'd say no.

Pretty typical to make an offer on a property without seeing it in detail. That's what the inspection contingency is for.

You can make your offer contingent on the house being empty at closing.

 I think most investors learn the hard way in that there really isn't more cash flow in C/D-class properties. The reality is expenses sky rocket as well.

If you can get the systems in place, self-managing is quite possible.

Many mid-term rental operators are forced to self-manage because most markets don't have a mid-term rental property management company.

I travel quite a bit while managing 46 mid-term rentals but I have a good VA, cleaner, and contractor.

As an out-of-state investor, your agent is either going to be your biggest asset or liability.

Your agent should have very specific answers to these questions based on what's in the purchase and sale agreement.

Start building your team now. You need a good agent, contractor, and property manager. 

Congrats on getting your first deal under contract, that's a big step. 

Especially at the beginning, I like getting a second look at my deals, just so I have the confidence to pull the trigger. After your 2nd or 3rd deal, you'll know what's a good deal or a bad one.

If you need someone to run the numbers on your deal that's actually a service we offer.

If you are in Flordia, I would look for a property within an hour of yourself.

You're overthinking. Focus on making sure the numbers work and the property will cashflow.

Narrowing down on a market is, in my opinion, the easy part. The hard part after that is finding a deal that cashflows.

So settle on a market then start running the numbers to see what works and what dosn't

So back in 2018, I decided to purchase property out of state since I couldn't afford the property in SoCal. I chose Ohio as a market and started looking for property.

The first deal I found was a 3-unit for $100k. Market Rents were $600-$800/month/unit. Monthly expenses were around $1,000 with everything.

I thought I was purchasing a cash-flowing machine. 

Turns out, the property was in a D-class area. Break-ins, loitering drug addicts, and inherited awful tenants were my everyday headache.

Before I knew it, I had to fire my property manager and move from Los Angeles to Ohio to figure out what to do with this property. I started doing repairs myself to save costs and slowly over 6 months got all the bad tenants out and got 3 solid tenants in all at $800/month.

In exactly 12 months I sold the property for $190k. Even though I lost my hairline, I gained so much knowledge. 

That knowledge took me from 3 units to 51 in less than 2 years.

We are all so worried about making mistakes but the mistakes I made with that 3-unit is what got me to where I am now. A lack of action is WAY worse for your success than mistakes.

I was living in SoCal in purchased in Ohio.  Ended up purchasing in a D-class area. Still made money on the deal but for 9 months it was a headache. 

First identify a market, then get boots on the ground. Start with an agent.

I'd also have someone look over the numbers before you pull the trigger.

Take action.