All Forum Posts by: Tom Feret

Bit of a newbie question:

How soon after acquisition could you expect a renewed assessment? I was under the impression that they take place every 1-3 years depending on the county/neighborhood. 

Hey @Mark Allen I definitely called you out in the initial post :P 

It was for this very reason to see if we could connect. I'll definitely send you a PM and look forward to hearing back from you.

Like to hear someone actually come out and say that even if they advertise as cash offers, they have or could fall back on financing if necessary or if it works out.

Has anyone creatively come up with a way to acquire an already leased out small multi-family to be able to structure it as an OO?

As an example: duplex->fourplex with all units leased until the end of the year, but would like to use the property as an OO ASAP.

Clearly wouldn't/couldn't evict the tenants (nor would you want to start your land-lording on that note).

Not sure if you could (or would want to) "entice" one of the tenants to move or brake their lease before it is up. Let alone of this is even legal.

Are there any options from a financing standpoint that could create OO criteria in the future? I assume you'd have to structure it as an investment property (20-15% down). I can't see how you would qualify if it's shown to be currently leased/occupied, nor would I want to endorse trying to buy it as OO without it actually being so.

Very interested in hearing if anyone has/had a creative solution?

Just wondering which zipcode you're referring to? Sounds like the exact same situation going in my backyard in Old East Dallas.
I would lean towards an "it depends" answer based on what your goals are. On the surface if you were to follow the 'buy low, sell high' mantra then you would not be in the wrong.

Mark is correct although with the amount of population and job growth in Texas I wouldn't be one to speculate just how far down the road that correction will happen. If you're continuing to utilize the 'buy low, sell high' principle then there is always opportunity in other markets where buying low (or at least compared to here in Dallas) would apply.

Welcome @Terence Johnson!
Sounds like you've already taken some very effective steps in seeing the process firsthand. Plenty of materials, people and wealth available to you here on BP.

@Karen L. those listed by other members above tend to be the current recommendations for turnkey/cashflowing investment markets.

Being in Dallas, it appears that the market has gotten overheated some time ago. The consensus appears to be: there's still deals available if you work hard at finding them. Anything out on the public market is sure to get multiple bids and close to asking. Many wanna-be investors (not applying the right "maths" to the deals and overbidding) and plenty of out of state money has flooded the area over the years ...*cough California cough* :P

If you want anything that makes sense from an investment standpoint, you can scrap Vancouver, BC. The only thing that city is currently good for is all the shorting against the housing market up there. Forget cashflow (or rational appreciation), that city has long since passed sanity or anything relatively close to market fundamentals for you to want to touch real estate 'investments' with a 100-foot pole.

If you can't tell, I could go on forever about the current status of the Canadian real estate market! 

Working in healthcare I'll have to echo @Julia Vang Hart and @Account Closed that this should not be viewed as an extension of a "typical" real estate investment opportunity.
There is and would be a lot of red tape, government, compliance and staffing obstacles to get through in order to establish a compliant facility. All of which are constants in the operation of an ALF, even after it is set up. Once it is running there is a multitude of regulations, laws and compliance components that need to be maintained, reviewed and up to standard. All this is JUST from the administrative side!
You have one deficient survey or are not in compliance at your site and the fines and government (medicare) scrutiny will be upon you.

Can it be lucrative? Probably. Plenty of baby boomers that will be in that age group in a few decades time.
Is it worth the (constant) headache? Hehe, I think those with experience in the field would give you their 2 cents.

Unless you have a great team in place that has experience with all that mentioned above or have experience in healthcare, you will be in for a ride.

@Jay Akpovwa unless @Darryl Shelton is referring to something other than what's associated with in healthcare, an assisted living facility (AL for short) is a level of care for seniors (typically) who can live and function "independently" but require some assistance. Typically along the lines of: cooking (meals are prepared or they have a dining room), cleaning (they don't have to clean their room/apt), bathing (if it is a fall risk/concern), and potentially laundry, etc.

People often confuse this with a nursing home which it is not, or at least the level of care shouldn't be at a nursing home level. AL level of care should mean that the person can do most of their daily activities independently but may require some help - almost like a retirement community but with on site nursing, etc.

Thanks @Joe Splitrock, @Alexander Felice, @Andy Robison, @Jassem A. and @Justin Fox for the input!
It seems the overwhelming consensus is saving for an investment/down payment, with increased liquidity leading to more opportunities.

Andy, great addition of the $0 benchmark and your $25k+ recommendation I'm sure resonates with a few ;)

I suppose the first thing should be to outline that this would apply to an investor looking to invest in residential real estate, and of course that it will vary dependent on each specific market. Curious to hear how everyone thinks the use of certain monthly increments could be best utilized in building a successful portfolio:

• $1k
• $2.5k
• $5k
• $10k
• $25k+

Naturally this could include holding on to the monthly amount and saving it for an upcoming use (down payment, HML, etc). I'll provide what I think could be viable uses of these sums and looking forward to hearing everyone's input.

• $1k - Investing in "yourself" (education, courses, mentors, coaching); marketing
• $2.5k - as above; Rolling it into an upcoming down payment; partnering
• $5k - as above; entry point for a down payment(?)
• $10k - as above, strategic investing based on criteria
• $25k+ - as above, rolling into potential HML

Let me know which obvious things I'm missing and also really interested in seeing how you would (or did!) progress through these increments.