All Forum Posts by: Tyler Bains

@Account Closed actually the one I am referring to is class B as crazy as that is. It is pretty common to see those numbers in class C in our area.

Knowledge 100%. There are a ton of great agents out there that are kind, smart, funny, and personable. 

As an investor you should in my opinion find an agent that is all of those things but ALSO has an extremely strong working knowledge of real estate investing, financing options, and financial analysis skills. Not every agent can analyze a deal accurately, negotiate appropriately on an investment, and confidently write a contract geared toward an investment.

I would interview agents in the geographic area you are considering and bring up terms like cash on cash ROI, cap rate, occupancy rate, etc.

I hear everyone talking about rough areas... as I worked 911 EMS as a Paramedic before jumping (back) into real estate I would have a different definition of “feeling safe collecting rent.” 

It seems on paper like you landed a killer deal. My first question would be condition and repairs. Obviously section 8 would be awesome in this situation but bringing the properties up to condition to pass the Section 8 inspection may be difficult. Section 8 would cut down on management expenses, rent collection issues, vacancies, etc.

What is the quality of your tenants? I know turn over is high but are they leaving a high volume of repairs in their wake?? I am genuinely interested because if so section 8 may be the best path. From there you just determine repair costs, ARV, etc. to see if it would make sense OR you just keeping rolling as the previous owner did.

I would look at Lubbock, Texas but I am a bit biased. I know of a duplex right now that pushes 10.8% CoC ROI and has excellent cash flow around the 200k mark.

I think ultimately the biggest thing to analyze is the local economy (who will be your renters), quality of Realtors and property managers you can establish relationships with, and the specific numbers on the properties you find intriguing.

Everyone has a different strategy and price point, determine what yours is and jump in!

I would say SFR rental investments 6-8% for the most part but I have seen some from this past week push up to the 10.8% mark. On the commercial side 5+ doors it can push the 8-12% mark.

I would focus more on CoC ROI and use Cap rate as an indicator of strength/potential value. Cap rate isn't the end all be all but it is certainly something I look at when analyzing a deal.

BP calculators! They are amazing and well worth a subscription. You can dive into the education tab to gain knowledge of what constitutes a “good” deal depending on your investing strategy. 

From there you learn what to calculate, how to use your local CAD to look at true tax info, determine ARV, and make a deal!

@Gregory McKinley I know of an off market option in Lubbock, Texas that meets what you are looking for with a better price point and solid condition. I think the biggest factor is ensuring you buy a property in quality condition to avoid killing cash flow by having continuous repairs.

This JV concept is extremely intriguing as far as multi-family 6-20 units goes. How are you considering structuring the venture?

I do not believe you can. How much of the ownership do you control?? Over 10%?

I second @Matt Moreland, Lubbock has a strong market and the price point is much more favorable over the DFW, Austin, or Houston markets. I would look at outskirts towns around the metro areas and obviously Lubbock is at the top of my list.

Keep your thumb on the markets wherever you end up deciding on and establish a good working relationship with a REALTOR and also reach out to some wholesalers as you can find value add opportunities through both channels.

That sounds great! I love selling and discussing multi-family. What unit size are your favorite? I like quads personally. They are a great investment if the price is right, one conventional loan, one landscape and roof, etc.

What does everyone find to be the toughest part about finding a great multi-family investment deal?