All Forum Posts by: Chris Collins

@Lisa Foreman Coming at this from a renter's standpoint (I have moved and rented quite a few places over the past years as my family as grown and other reasons), I'd echo what @John Hickey said with gusto. Photos are huge in my book as to why I would be attracted to a place in the first place.

(Now, given that there were 20 people who came through and nobody rented initially is a different story, but regardless...)

I'd suggest a pro photographer (or just look at pro photos and do your best to get close with a real camera, not an iphone), also, keep in mind what's in the photos. Are the rooms empty? (Giving the viewer an opportunity to picture 'their stuff' in the spaces?) or are they filled with beds/curtains etc.  My main point, is that the pics on zillow, while not your furniture, show a somewhat 'old/dated' look, vs a more modern fresh look. The dark wood bed, the grandma curtains. etc.  I'd look at that and think overall, 'oh, this place is old' even if its not! Cuz the furniture is so loud in terms of 'what I see first.'

Just thinking on the surface, and being shallow brained, because that's what strikes me first when I see places on Craigslist or other sites in my area when I'm personally looking to rent a new house.

Try your best to put yourself in your prospective tenants' shoes from start to finish, what is your ad saying, how are you interacting, etc.

Glad its rented!

-Chris

@Lance Knapp I've heard both sides to be honest. My CPA is also a broker and just recently sold 6 properties he owns in Sherman Oaks because he believes the market is going to go down from here. But my cousin is a #1 ranked broker in Orange County and he thinks that the way the FED is structuring loans is cause to believe that the market will stabilize and go slightly higher, not drop.  

I think it makes sense to carefully analyze the locations and go from there. Some markets (CA, SF, SD) will drop more significantly if it happens, others may not take as high a hit (Memphis, Kansas City, etc). 

I'm impressed you could even find cash flow neutral properties in our area (I'm in the South Bay here in LA), good for you. Those may not be the worst buys if you thought the market is going up. But if you're fearful that it will drop, then you can't count on the appreciation of SoCal like you usually can right?  

Tough call, but I would think the best bet is to find some solid cash flowing deals, and then re-analyze with a 10-20% drop in rent (which would happen if the market drops out).  Rents don't really drop equally as much as values of properties do in my experience (say a 1M home drops to 600k, the rents don't drop from 2,000/mo to 1,300/mo you know? They may drop to $1600 or $1650.).  If they still cash flow, then you're 'protecting yourself' against a big market drop cash-flow wise.  That's one way to safe-guard yourself and your investments... 

Good conversation though!

-Chris

@Ryder Meehan thanks! That kind of info is priceless and one of the reasons I love BP.  I'd rather have 'real life' wisdom than some website telling me stats.  I appreciate the intel.

Thanks @Andrew Herrig and @Todd Plambeck  . Using that crime map, this property I was looking at is more in the north of the zip, but also lands right in one of the only orange/red zones there.

Address is

The complex is Creekbed Commons. 

Looking at deals on Loopnet for practice/to learn the area:

http://www.loopnet.com/Listing/19362479/12480-12482-Abrams-Road-Dallas-TX/

I don't see much opportunity for growth in this deal, but like I said, I'm starting out and learning the ropes as I go. I appreciate the insight!

-Chris Collins

Even though I feel way 'behind' a guy's gotta start somewhere! 

I'm beginning my research on the different areas of Dallas for multifamily properties.

Does anyone have any insight on this area/zip code? 

There's a community college there, so perhaps that's not bad for apt investing... ?

Thanks in advance!

Chris Collins

 Thanks Jay! This was my thought exactly, if I was a renter, I would love to have my own space. Obviously as an investor it would need to cash flow, but just seemed like an interesting option.  Definitely learning how to analyze better as I get all the help around here. Thanks to everyone!

 Interesting. I wonder if that means they bought 1 of the 2 units, or if they just got a steal of a deal. Either way, looks like its off the table. Moving on to the next one!  Thanks everyone.

 Brent, where do you find that? And yes, if someone got that, they got a steal!

Thanks everyone. Yes, I should have originally written 'I already know its not a 'good deal' but I'm learning how to do the analysis (good and bad #'s).'  So I appreciate the idea of 'paying myself the rent' and running the numbers that way.   Thanks @Will Chamberlin for that nugget.

sorry, didn't post the whole link to the loopnet page

http://www.loopnet.com/Listing/19454637/2827-Danaha-Torrance-CA/