All Forum Posts by: Tyler Lingle

@Craig Cecin

I'm also in California. I've heard good things about San Antonio and know Bay Area investors buying multi-family there. I invest locally and in Indianapolis. I did a local major renovation where I was on site at least once a week. I thought I knew enough about renovation to attempt one out of state...nope. I agree with the above comments on trying to BRRRR or flip OOS, very challenging.

I bought a turnkey (with an agent, not a turnkey company) in Indy 6 months ago since I didn't have team in place. I have a team in place now and have been attempting to do a BRRRR, put in at least 5 offers. Long story I'm finding it very difficult to hit the numbers right. The Hard Money Loan rates and interest payments scare me. I also put in 10% to 20% contingency on top of my numbers to be extra cautious. I'm leaning heavily towards a minor rehab, more cosmetic instead of major rehab - less value add but less risky for me. At this point I'm buying more for tax benefits and property appreciation than cash flow with these interest rates.

On a move-in ready home that's been sitting, you might be able to ask the seller for help with closing costs to do a 2-1 Buy Down on conventional loan (e.g rate is 7.7%, Year 1 it's 5.7%, Year 2 it's 6.7% and Year 3 and remaining term of loan goes back to 7.7% original rate). This is one strategy I'm seeing where I could positive cash flow and raise the rent every year but the 20% down is not a great way for me to scale. 

Ask real estate agents if they're investors themselves and what percentage of investors they work with. I've found many agents (locally and OOS)  focus mostly on primary home buyers. Some of the questions to ask contractors are about change orders, do these numbers include permits, etc. Some contractors will give you a low estimate to get the job but do lots of change orders which will drive up your cost. Get feedback from local investors about the neighborhood and talk to people who do construction management in your local area. Have multiple people go through your numbers. Also don't give large amounts to a contractor. I've already seen a remote investor lose $20,000 when the shady contractor walked off with the money and now this investor is seeking legal action. I paid my Bay Area contractor $1000 down payment then made many payments as the tasks got done after I inspected them. Vet your contractors. 

Highly recommend flying out to the city which is what I did recently - seeing areas and properties in person look much different than photos and videos. Do a Google Map view of the prospective properties but sometimes those are out of date. MLS pictures don't show the busy noisy street, neighbors overgrown lawn, beat up cars or the factory right next to the neighborhood. Good luck!

Your net worth equals your network. I agree. 

Just starting out here. Any recommendations on where to start growing my network. 

I’m wanting to stay local to the Indianapolis and surrounding areas of the start.