All Forum Posts by: Tyler Watts

I have 7 properties I have bought/rehabbed/leased and currently managing while working a job that requires 50+ hours week.  I have set systems in place so i don't have to be there, just make a phone call and receive money thru popmoney.com. The biggest key to being able to juggle this is having a good contractor. I have one that is great and I literally buy the property and hand him the keys and he tells me when it's done. We talk once a week about the property, but I rarely go see it unless I just have time. He's done everyone of my proprieties and knows what I want and the budget to stay within. The second is having secondary contractors when your units that you are renting have issues. I don't want my general pulling off the re-hab to go fix a plumbing issue. I'll call a plumber for that and get it handled. 

Network, network, network and you'll find good contractors which takes a huge load off your back. Yes you eventually have to take chance on them, but when they do well, tell them, buy them a $25 gift card to starbucks, take them to lunch. I promise it will save you thousands their loyalty will be second to none. 

# of units someone can manage depends on the systems they have in place. Create systems and you will grow at a rapid rate.

Chris,

I lived in Hendersonville for 2 years attending BRCC, back when they had the baseball program. I reside in Shelby now and invest in the Gastonia, NC market. Hendo-ville as I call it, has grown a lot since I was there (2006-2008). Don't know much about the flipping market, but the rental market is there. Your standard mill home market exist there. I rented when I was there and it's an older town with older residents. Great rental market and I'm sure the right conditions a flip can be profitable. I'd be interested in hearing about your progress. I'm only about an hour away so I would imagine the markets share some similarities.

If you don't mind what was your # breakdown? You can PM me if you don't want it public. House looks great!

Jeremy,

Use the rental property calculator to run your numbers. Podcast are your best source of information. Takes time but WELL worth the investment.

I just purchased/rehabbed/rented my first duplex with much success. Bought it in foreclosure from a bank, re-habbed it and rented it. Key note....just b/c a bank owns it doesn't mean you don't make low offers. Duplex was listed for $54k and I bought it for $30k. Never would have imagined they would take the offer! Put $30k into it (LOC) and currently renting it for $550 per door which includes lawn care.

I learned a ton about creative financing thru the podcast and used it on this deal. Bought the property thru conventional loan, used LOC to rehab and plan is to own for 1 year and go to the bank to re-fiance and do the process all over again. If you don't have access to LOC, find a partner and start an LLC. You bring the deal/numbers/sweat equity to the table and let the partner bring the LOC.

Just bought a triplex and going thru the process all over again!

50% of something is better than 100% of nothing.

Your numbers for 3/2's are correct. I'm not in your areas (Gastonia, NC) but my numbers are close to yours. The main thing I would suggest is location. Now that you know your numbers, know the neighborhood. If you don't live near, ask around and ride thru at all hours of the day/night to see what the rhythm of the neighborhood is. This will help determine the type of people you can expect to rent too. SFH's are a great investment and can cater towards a family type tenant. I don't have condo's, but I do have a duplex and triplex and both give a higher return, however tenant compatibility is a challenge I have to overcome. Your not going to put a single person on one side and a family of 6 on the other. If you do, expect problems. Last thing, remember you are dealing with money and people, expect to have to manage, even with a PM you still have to make sure they doing their job. I manage everything and started about 4 years ago. Got 7 properties now and my goal is to learn a little of everything. Understand the do's and dont's and then explode the business with a system set in place. I wouldn't worry too much about depreciation/appreciation, that's just icing on the cake. Concentrate on the cash flow!

Never lower your tenant standards, you can lower your price, but never your standards....never

Good luck!

Shoot properties my way.

I'll PM you my email

SFH/duplexes/triplex/quadplex are all of interest.

Prefer the Gastonia, NC area. Distressed properties

Matthew, 

I've been investing in the neighboring town (Gastonia) with a lot of success. My nitch area is find the 2/1 or 3/1 for less than 50K fully rehabbed. Easier said than done so I have to concentrate on foreclosures. I've got some good contractors that can help get things up to par which is a key to my success. There's a lot of old mill homes in the area and they make perfect rentals if rehabbed correctly.I have found that when re-habbing, do it correctly and economically . People want a nice place to live and will stay and pay a premium rate. Knock on wood, I've got 2 properties in gastonia and I bet I had 30+ people that wanted to rent it before I could close on the property (with deposit and 1st months rent in there hand). Everyone said, "the house looks new" so the results of re-habbing and not cutting corners seemed to help a lot in my case. There is a considerable price difference for purchasing and rents b/w the two cities although there only 25-20 minutes apart.

Your last update about the loan details is what I did on my first 2 properties except they are 15 yr notes and I got it for 20%. One thing to consider is if you have a friend aka potential partner or family member that has access to a line of credit you could utilize that. I just purchased a duplex and plan to use my partner's line of credit to purchase and rehab. Line of credit from my bank cost $270. So for a $55k duplex (my price) it's going to cost me (splitting in half) $135. After one year the bank allows re-fi and then you pay off the line of credit and roll into a conventional style loan. This way you'll bypass high closing cost along with having to put 25% down. you'll still closing cost with the attorney but no bank markups. Now the key is to find someone who can get a line of credit but if you ask around and market it'll probably find you. I did this and had a guy say, if you need the money let me know. So he brings the money to the table, I  bring the deal, knowledge, property management, tenants, etc. and we split 50/50.  

50% of something is better than 100% of nothing.

Wanted to break the ice and see if I can make some connections with locals out there. I've got some deals in the works that I don't have enough funds for at the moment or that doesn't fit my model right now that maybe some people on here may have interest. There out of the Shelby/Gastonia NC area. Some good deals and would rather help out a fellow BP member than see a deal pass by.

Corey- Thanks for the reply. We'll keep in touch and see what lies ahead.

Troy- thank you too for the response. I agree Gaston County is blowing up and the rental market is very strong. I had two properties rented, deposit paid in full before I ever closed on them. And your dead on about location. It's a central area to a lot of places and is a perfect place to look for investing.  I just purchased a duplex in Shelby and it should cash flow nicely once re-habed. If your friend ever wants to connect let me know. We all may be able to work together in the future.