All Forum Posts by: Zachary Clevenger

 Hey Kerry! Sent you a DM. I'm local as well, deep south sider.

 Looks like you tagged South Bend? Is that the area you are looking in?

 Okay, thanks for the reply. I'll send you a DM with some info.

As the others have mentioned so far...
I am both being cautious and picky. They both placate to each other.
Most deals suck. I analyze 100 properties and maybe one moves to the next level. Even then the numbers typically won't meet my criteria due to many factors.
1) Everything is over priced.

2) Everything costs more now; HVAC, utilities, water, sewer, taxes, insurance, hell even lawncare.

It is more critical now to be extremely picky.

 Hey Lauren, sending you a message. 

A lot of lenders can operate multi-state. Are you looking specifically for one you can walk into physically?

I drove by and looked at all 20+ of them. Area was okay, typical.
Some were nicer than others, also typical.
But what stood out the most, and was the most concerning... was the lack of truthful legitimate financial data to back up the claims. The realtor/rep of the "seller" kept providing me a word doc and excel sheet of "financial" data. Anyone can easily do that. I can put crap in a word doc all day long and make claims that these are "my numbers". For over 45 days I bickered back and fourth with this guy to get hard numbers backed by financial statements. Offered to go through the correct channels of signing NDA etc. Still.... provided me with the same doctored stuff.
I moved on after that.... and it is no surprise they are till on the market after a year. Think about that.

Pam,

I believe I know exactly which portfolio you are speaking of. If I am correct, there is a reason they have been on the market for so long... I've analyzed them myself. 

Hey Eli.
I live in the Indy area and have a few things to note.
$250k is a decent amount, but because so many individuals are flocking to the market prices are naturally going up. I would suggest utilizing leverage with 20-30% down.

Do you research into the area being presented before giving up your cash. A lot of the deals, and I do mean a LOT, are in areas that I would ever invest in. Sure, the monthly cash flow will look great (on paper), but the area will not support quality tenants, appreciation will suffer due to the poor areas, and the possibility of increased repair/maint/turnover cost can be greater as a result.
I am not saying these things to scare you off. I have been seeing a huge flood of out-of-state investors like you coming in and buying these properties.

Be...vigilant. 

Hey Reese, welcome back! I also invest in smaller multi family properties. Like everything there are pros and cons to this particular area of real estate. Do your homework and run the numbers for true cash flow. That is the critical part.