All Forum Posts by: Tyler Rowland

If you get the Pro membership you can have full access to the Calculators.  That way you can weigh the advantages and disadvantages of a rental compared to a flip.  Great job on looking at your exit strategies.  

In my market it is really difficult to find a 1% deal.  Because the Highest rent you can get for a 3 Bed 2 Bath house is 1400-1500 /month.  And those are the nicer houses that are selling in the upper 200,000's.  But if you find a similar house for 140,000 and fix it up you can get a nice profit from a flip, because that is what the market dictates here.  

What is the Sacramento market dictating?

Are student housings the highest and best use?

Asking questions like that will get you closer to your answer.

Check out BP podcast 306 with Monick Halm.  She mentions her 7 criteria for choosing a market to invest in, and it is super helpful. 

Rent Prep is really good for tenant screening, and they do have an option to buy Rental application forms, along with 60 essential landlord forms for about $15.  Each background check/tenant screening is $35 or less. 

Your welcome! That is a great goal analyzing one property a day will definitely push you closer to the purchase of an investment property; and you will get a hang of the Calculators.  My favorite part of the Rental Property Calculator is being able to go back and edit the inputs.  So if the deal doesn't work out this way, would it work out at a different price, or if rents were different.  Just finding out how the deal would work for you, and then putting in an offer is a great perk with the pro membership.  Its worth it.

Thank you @Nathan Gesner I have seen your posts in quite a few places now and really appreciate your input.  That is exactly what I am going to do.  Would it be proper to require anything else?  In The book on Negotiating Real Estate they emphasize getting concessions in real estate.  Where I inherited the lease that is up in April I was wanting to turn the Water, sewage, trash over to them.  They are really good tenants so far, and I do not think they would object to that considering they are adding another person.  I just don't know if I should even worry about any of that until April 1st...

What are your thoughts?   

Hey @Keleisha Carter,  I have a few tools that might help you out, congrats on the Pro Membership BTW!

ARV, So once you have done a couple of calculations in the same market you should start to get a good feel on what houses are going for. But If I ever really just need a good accurate estimate I will call a realtor familiar with that area and that can do an estimated analysis to give you a good ball park value. Or you can look on Zillow or Realtor.com and find houses comparable with the one your analyzing. I had a realtor selling one of my houses walk thru with other realtors, and then ask them what they believed the house would sell for. They all came with in 5000 dollars in their estimates. So they are a great resource.

Estimated Rehab is difficult but just remember that it is always better to over estimate than under.  One of the podcasts had a guy that would look at out of state houses and just estimate at least 30000 for rehab no matter what house he looked at.  Ill find that podcast number for you. 

Hope this helps.

Thank you @Rachel Jacobson that is very helpful.  

Thanks Chinmay J. I like it.  I know the Tenant laws may be different in Virginia, but can I add an addendum to a lease I inherited?

My Tenants want to move their Nephew into their house. 21 years old.  They say he is engaged and has a good job and will be out in 3 to 5 months.  I am okay with it if the following things are done.

1. He fills out a rental application
2. He passes a background check and credit score
3. Has a Job. (last two pay stubs.)
4. The tenants sign a whole new lease with his name on it. 

 Is there anything that I am missing here?  Is there any feelings one way or another or experiences anyone else has had?  

We are house hacking the Duplex these tenants are in.  

Thanks for your input!

Evan, maybe your wife is onto something. If you haven't bought a first home yet, maybe it would be good to find one. A great way to start is with a primary home with equity because that can create a lot of great options. If you find something with a little equity in it you could take out a HELOC in a year or so to move forward with another property. You might grow out of that home in a couple of years after kids and rent out that property. Starting off with a good primary home with Equity, or a possibility of creating equity would certainly set you up nicely.

Not to mention the experience you would gain from the purchase.  

Some people are just not ready to dive in head first and that is okay.  There are smaller steps that can move you in the right direction.

Hey There David and anyone else on this thread.  Considering the height the current market (and assuming it stays high.)  Is this a deal you would do again.  Seems like deals with these types of margins are much more common in a seller's market.  If you came across this deal again with the AC to fix, same price, same everything; would you (or anyone else in this thread) jump on this deal?

(I know there are a lot of variables like location, market, etc... but using what info we do have.)

Thanks!