All Forum Posts by: Taylor L.

I've done a bunch on both ends, actively and passively.

The #1 factor that I've found makes or breaks an investor wanting to be in a deal is the individuals on the sponsorship team. Investors all go through their own process of know, like, and trust sponsorship team members. Some are faster than others to build the level of comfort they feel they need. Then, once that hurdle is passed, they'll begin to consider the deal.

Looks like you're buying from a distance. I'd take a step back and ask what degree of physical and market due diligence you did before purchasing the property?

CPA is right, flips aren't eligible for 1031 Exchanges. You have to hold the property for productive use in a trade or business, such as renting it out. 

Second what others said about contacting the HOA and potentially the city. At one point in time I owned a condo that had a similar situation. The city forced the association to take immediate action. Depending on your local codes and enforcement this can escalate quite a bit. I'm glad to have cashed out on that property.

Unfortunately, as far as the tenant is concerned it's your responsibility to provide a home free of cockroaches. One of the downsides of condo ownership - things may be your responsibility as far as the tenant is concern, but may not be within your power (rather delegated to the association)

You need to do your own underwriting to determine its actual value. They state rents, but the properties aren't finished so rents aren't actually being collected. You also have another thread about starting in syndication, but this property is in Canada. Syndicating across the border (assuming you're in the States) would just be a mess.

Don't bank on the listing's underwriting, do your own. Odds are very high you'll come up with much lower returns than they did. They're probably underbudgeting on repairs & maintenance, vacancy, and property management costs. $3,000 goes very quickly when you're doing value add.

IRR is also, honestly, a poor metric to use despite its popularity. Look at your cash on cash return first and foremost.

At this point you need to (at a minimum):

- Run the numbers for yourself

- Do your own rent comp analysis

- Independently research the area

Limiting beliefs hold more investors back than any other factor (myself included)

The thing that will push you forward is a burning desire to achieve whatever goal you've set. It boils down to picking a strategy, sticking to it, and working on it every day, making gradual steps forward and building upon what you've already done.

I agree with @Greg Scott's analysis. I would also suspect that applying cap rate to single family could turn into a way to trick yourself into overpaying for the houses. I would compare price per door against comparable SFRs in the market to see if I'm really getting a deal or not, in addition to the cash flow and other return metrics Greg mentioned.

Meetup.com is the best place to find them. There are quite a few that meet on a monthly basis.

I use Quickbooks, but I also evaluated Xero, Wave, and Zoho. Have you looked into any of those?