All Forum Posts by: Tyler Jahnke

Hey @Teri B. - I personally will never invest in C class again, just knowing the tenant class that neighborhood attracts and the type of home you get (it's usually older needing more repair if held for awhile). I really now understand the importance of location and neighborhood having gone through an unexpected vacancy, squatter in the garage, and $16k+ in surprising repairs.

I want to attract the best tenant possible who has a good job, is responsible, and pays rent on time. And that's B/A neighborhoods.

-Tyler

Hey @Diane G. - Thanks to the amazing BP community, a couple people in Indianapolis were driving by my property and noticed a lock box on the front door.

I then sent a third party property management company to go out there and investigate. Sure enough, there was a lock box on the front door and they talked to the neighbors. The property was vacant, but I'm not sure how long. I talked with the utility company and they said electricity was shut off over a month prior to me finding out all of this.

-Tyler

I believe Indianapolis is a great market for long-term rentals. 10% cash-on-cash is achievable for sure, but you might be in a rougher neighborhood and have to understand the risk you're taking if you go that route.

A place for under $80k that rents for $900 might be kinda tough to find, but they're out there if you look!

Let me know if you have any questions!

-Tyler

Hahaha @Will Zena no more turnkey for me!

I’m not interested in buying a property that’s basically a flip. I will buy value add from here on out so I can have some built in equity and good cash flow.

Welp BP,

I've got another update for you. I'm still paying for this Morris Invest property....

OK, it's not that bad actually. I just paid off my last utility bill. Nothing crazy.

But, I do have another update for you...technically it has nothing to do with this particular Morris Invest property, but it's still 100% related. Let me tell you all about it...

****SPOILER ALERT for anyone just joining this thread. You might want to go back and read the previous 29 pages before reading on****

So, if you recall, I SOLD this Morris Invest property in May of 2018. Because I bought the property all cash, literally had 100% equity in it, and SURPRISINGLY didn't sell for a loss...I got a nice injection of cash back to me. What'd I do with that cash?

I bought My Third Property (remember, I already bought My Second Property a few months ago).

@Jay Hinrichs - you'll be happy. It's in a B/A neighborhood. Oh, and great finally meeting you a couple weeks ago!

So anyways, at the end of the day, I traded this C-Class falling apart property for a downpayment on a B/A Class Duplex that will bring in $1,700 a month. It's in a neighborhood of absolutely no crime whatsoever. Schools are 9/10. One unit is already occupied and I'm working to get the other unit rented ASAP. Looking at my numbers right now...and it's at a 7.5 cap rate and 8.45% cash on cash. In a great neighborhood.

So, there you have it. As always, only time will tell if this latest property turns out to be a good investment, but I feel so much more confident in it's long-term stability.

Let me know if you have any questions. Love you all. Happy Friday!

-Tyler

Hey @Travis Raila - do your research and eventually pick your top market. You'll want to learn it very well so you can quickly calculate and analyze the cash flow (if that's what you're looking for). Know exactly how to calculate property taxes, estimate insurace rates, etc. and start analyzing multiple properties a day so you get the hang of it. Understand the neighborhoods, good and bad, by studying crime maps.

Start building a team in your market ASAP as well. I'd probably start with Property managers and agents as they have 1st hand experience in the town. Great individuals "on the ground" are going to be KEY!

Let me know if you have any questions. I started investing out of state in 2016...hit a ton of bumps in the road...but recovered. I'm just across The Bay from you as well and work in SF.

-Tyler

It's been said multiple times @Jamil Rivera already, but DO NOT work with Morris Invest.

I have first hand experience investing with them and started that post in 2016 that has over 700 replies now. PM me if you want any more info.

-Tyler

Hey @Eric Adobo - I think we can both agree that jumping in COMPLETELY BLIND is not smart. Listening to podcasts, reading books, and this website are definitely necessary. But, to your point, yes, one cannot get stuck on the learning step. Action has to be taken.

-Tyler

Hey @Robert Davis III - I started investing out of state in 2016. Definitely felt my fair share of bumps and bruises along the way, but also learned a TON and am better prepared than I ever have been. I'll shoot you a PM and we'll connect!

-Tyler

*HINT*

There is no art. You just have to do it.

Today, I had a conversation with someone while they were analyzing a property. While bringing up crime stats she asked, “Do you think I’m rushing into it with this property? So many things I didn’t consider. I think I am just eager to get started...”

I remember those days. The days of...

”how old is the sewer line?”

“Are the gutters galvanized?”

“What type of soil is the house sitting on?”

You know...the days of analyzing EVERY LITTLE THING. The days commonly known as, “Analysis Paralysis.”

You hear it all the time from @Brandon Turner, @David Greene, @Scott Trench, and @Mindy Jensen.

But, back to her question, “Do you think I’m rushing into it with this property?”

My answer?

Honestly, I can’t answer that question. You'll ultimately have to answer it yourself. At some point you'll have to JUMP IN without knowing everything, makes mistakes, maybe lose some money, learn on the fly, and get better. Otherwise, you're sitting on the bench watching...

I bought My First Property before I "should" have. I was very naive (didn't even know how to properly calculate cash flow...), but was super eager and could see the real opportunity in real estate.

LONG story short, I got burned. But, I got out of it. I walked away. Let that one go. Am now better prepared for the future.

I wouldn’t trade that experience for anything.

Here’s the bottom line: if you think you’re going to learn every little thing about real estate before getting your first deal...you’ll never BE a real estate investor.

Learn from this community, meet connections, find a deal, and jump in.

Best of luck all. Happy investing!

-Tyler