 Rethinking 2% (by S i d [MO]) Dec 12, 2017 8:39 AM
 Rethinking 2% (by Ken [NY]) Dec 12, 2017 9:40 AM
Rethinking 2% (by Sisco [MO]) Dec 12, 2017 10:07 AM
Rethinking 2% (by TIM [IN]) Dec 12, 2017 10:11 AM
Rethinking 2% (by RB [MI]) Dec 12, 2017 12:01 PM
Rethinking 2% (by Lee [IN]) Dec 12, 2017 2:48 PM
Rethinking 2% (by Ray-N-Pa [PA]) Dec 12, 2017 4:33 PM
Rethinking 2% (by Susan [OH]) Dec 12, 2017 4:43 PM
Rethinking 2% (by Susan [OH]) Dec 12, 2017 4:43 PM
Rethinking 2% (by MikeA [TX]) Dec 12, 2017 5:37 PM
Rethinking 2% (by tbird [KY]) Dec 12, 2017 6:31 PM
Rethinking 2% (by tbird [KY]) Dec 12, 2017 6:31 PM
Rethinking 2% (by tbird [KY]) Dec 12, 2017 6:31 PM
Rethinking 2% (by tbird [KY]) Dec 12, 2017 6:31 PM
Rethinking 2% (by Dave [MO]) Dec 12, 2017 8:25 PM
Rethinking 2% (by BRAD 20,000 [IN]) Dec 12, 2017 9:41 PM
Rethinking 2% (by NE [PA]) Dec 13, 2017 3:55 AM
Rethinking 2% (by NE [PA]) Dec 13, 2017 4:15 AM
Rethinking 2% (by Kyle [IN]) Dec 13, 2017 5:59 AM
Rethinking 2% (by Robin [WI]) Dec 13, 2017 7:01 AM
Rethinking 2% (by S i d [MO]) Dec 13, 2017 8:37 AM
Rethinking 2% (by Chris [CT]) Dec 13, 2017 4:20 PM
Rethinking 2% (by Ray-N-Pa [PA]) Dec 13, 2017 5:49 PM
Rethinking 2% (by GKARL [PA]) Dec 14, 2017 9:24 AM
Rethinking 2% (by S i d [MO]) Posted on: Dec 12, 2017 8:39 AM
Message:
It's been slow around here recently finding deals, and due to some pretty decent deals awhile back I'm sitting on some cash...I know, what a bummer! (grins)
Anyway, my multi-unit strategy is on the back burner at the moment as the Seller seems to be overpriced and stubborn as can be...putting his deal at a 1.6% rent to purchase price ratio (RPPR). Normally, I don't even start looking until 2%, but those are getting hard to find. Thinking about maybe starting to look at 1.8% and up.
Real estate is certainly local...rest assured we all know that. Have you noticed deals slowing in your area? Looking at Class C stuff...I know B and A don't get anywhere near that ROI typically. Have any of you starting taking "singles" and "doubles" rather than insisting on home runs, and how does that impact your long-term strategy?
Baseball is fun for making analogies, but I want to hear what some of you all are doing in the real world. --173.19.xx.xxx |
Rethinking 2% (by Ken [NY]) Posted on: Dec 12, 2017 9:40 AM
Message:
Sid,look into foreclosure auctions if your state is a mortgage state.I am getting the best deals I have ever gotten in my life,i go to every auction in 2 counties and every once in awhile I get a house so cheap you wouldn't believe it --72.231.xxx.xxx |
Rethinking 2% (by Sisco [MO]) Posted on: Dec 12, 2017 10:07 AM
Message:
At some point, you should re evaluate if you want a C-D at 1.8 RPPR, or if you would rather have a B at 1.1 RPPR.
It may be a good time to sell your current holdings and re deploy. --72.172.xxx.xx |
Rethinking 2% (by TIM [IN]) Posted on: Dec 12, 2017 10:11 AM
Message:
Sid, start looking at auctions or doing your own advertising (we buy homes). Otherwise, just sit on your cash.
I just read an article about highly productive people. They say "no" a lot until it is a "OH yeah!! Lets do it!"
Just be patient, don't bend your rules. Last time rules were bend in the housing market, 2008 followed... --67.143.xxx.xx |
Rethinking 2% (by RB [MI]) Posted on: Dec 12, 2017 12:01 PM
Message:
I guess I wont be Losing my $5.00 (Bet) --71.13.xx.xxx |
Rethinking 2% (by Lee [IN]) Posted on: Dec 12, 2017 2:48 PM
Message:
I would hold fast, brother. Your deal will come just when you think they are all gone. --209.239.xxx.xxx |
Rethinking 2% (by Ray-N-Pa [PA]) Posted on: Dec 12, 2017 4:33 PM
Message:
I had a hard time making my numbers work on the deal I completed last week. So we structured it so the a second was carried by the seller to cover the cost of the scheduled improvements.
With the improvements in place, the 2% rule works (2.6% on a duplex)......the second is an interest only arrangement with a three balloon. Property is in a class C location owned by the same folks for a couple of decades so it was very dated. The carpet is getting hauled away as we speak. That said though, with a lake effect storm going on......this will take about a month to get it ready for renting --24.101.xxx.xxx |
Rethinking 2% (by Susan [OH]) Posted on: Dec 12, 2017 4:43 PM
Message:
Prices for anything half-way decent in our area are way up. I'm not buying anything (unless I find a real steal, which does sometimes happen-not that I'm actively looking-I'm in a way different spot in my investing career than you are).
Planning on selling 2 or 3 of my dogs,come Springtime. --76.189.xxx.xxx |
Rethinking 2% (by Susan [OH]) Posted on: Dec 12, 2017 4:43 PM
Message:
Prices for anything half-way decent in our area are way up. I'm not buying anything (unless I find a real steal, which does sometimes happen-not that I'm actively looking-I'm in a way different spot in my investing career than you are).
Planning on selling 2 or 3 of my dogs,come Springtime. --76.189.xxx.xxx |
Rethinking 2% (by MikeA [TX]) Posted on: Dec 12, 2017 5:37 PM
Message:
Sid, I was singing the same song recently. It had been months since I had found a deal. Then about a month ago I found 3 deals in 3 days. I managed to buy 2 of them and missed the 3rd by about 30 minutes. All 3 were better than 2 1/2%. Stick to your guns. --74.196.xx.xxx |
Rethinking 2% (by tbird [KY]) Posted on: Dec 12, 2017 6:31 PM
Message:
I second to consider foreclosure auctions. In addition, regular auctions, and owner financed deals where you're not out that much cash, likely have a tenant in place, and little transaction costs. --98.93.xx.xx |
Rethinking 2% (by tbird [KY]) Posted on: Dec 12, 2017 6:31 PM
Message:
I second to consider foreclosure auctions. In addition, regular auctions, and owner financed deals where you're not out that much cash, likely have a tenant in place, and little transaction costs. --98.93.xx.xx |
Rethinking 2% (by tbird [KY]) Posted on: Dec 12, 2017 6:31 PM
Message:
I second to consider foreclosure auctions. In addition, regular auctions, and owner financed deals where you're not out that much cash, likely have a tenant in place, and little transaction costs. --98.93.xx.xx |
Rethinking 2% (by tbird [KY]) Posted on: Dec 12, 2017 6:31 PM
Message:
I second to consider foreclosure auctions. In addition, regular auctions, and owner financed deals where you're not out that much cash, likely have a tenant in place, and little transaction costs. --98.93.xx.xx |
Rethinking 2% (by Dave [MO]) Posted on: Dec 12, 2017 8:25 PM
Message:
Sid, stick with your rent requirements ratio. Sellers are waiting for Spring, which will put more houses on the market, making it better for you buyers.
--72.24.xx.xx |
Rethinking 2% (by BRAD 20,000 [IN]) Posted on: Dec 12, 2017 9:41 PM
Message:
Sid,
Deals are out there - EVERYWHERE!
The more people who know about it, the higher the price. Spend time with some great courses how to look under rocks no one else is looking under.
But ya gotta know where to look. Try peeking under some different rocks.
All the youngsters I meet are hepped up on scraping the internet and apps to find properties. RE is a PEOPLE business. Use your great people skills to TALK to people - THAT's where the deals are, other than cash only govt sales.
Stay strong and patient. It will be worth it. Keep accumulating cash so you have more buying power.
BRAD
--68.51.xx.xxx |
Rethinking 2% (by NE [PA]) Posted on: Dec 13, 2017 3:55 AM
Message:
You know what I would do Sid? I'd look at all your properties and see where they are cashflowing at now. On average.
Say they cashflow $185 a month per unit. Round up to $200 and search for that.
That's all I've ever done. When purchasing. I set a goal and found that house. The percentage things are too complicated for me. I deal with it house by house. --50.107.xxx.xxx |
Rethinking 2% (by NE [PA]) Posted on: Dec 13, 2017 4:15 AM
Message:
Better yet Sid. Average your cashflow per bedroom. --50.107.xxx.xxx |
Rethinking 2% (by Kyle [IN]) Posted on: Dec 13, 2017 5:59 AM
Message:
Prices are going up everywhere. If you chase after them, you could end up buying bad deals. Keep looking for deals that will make you money.
I know you are all cash, so creative financing won't help. But, you also have an extra safety net in your deals, if the market turns, you don't have a constant mortgage payment.
If you think you can get some good deals at 1.8%, try it. Maybe keep some extra in reserves to make you feel safer with it. Remember, it will be good to have cash when prices come down and there are deals to be had at 2.5% and higher. --73.102.xxx.xx |
Rethinking 2% (by Robin [WI]) Posted on: Dec 13, 2017 7:01 AM
Message:
I know this won't work for you, S i d, but for anyone else following this thread, we've shifted into doing some private lending for people who have exceptionally good finding or deal-making structures in place. Rather than turning over rocks ourselves, we're helping people who are already extremely good at it. Their unusual profitability means that we're actually doing better with the lending than with our 2%-and-up rentals. Remember the gold rush? The people making the most money weren't the gold miners for the most part--they were the ones selling the pickaxes and shovels. --204.210.xxx.xxx |
Rethinking 2% (by S i d [MO]) Posted on: Dec 13, 2017 8:37 AM
Message:
Wise advice here, as always. Thanks for talking me off the ledge. ;-)
Ironic thing....yesterday afternoon I found a 2 bed that will rent for $525 - $575 easy. Fully rehabbed from roof to foundation. New breakers, hardwood floors, nice appliances, solid plumbing. I'm thinking to maybe add a central gas furnace in the attic. Gas service is already in place. Probably a $1500-$2000 job to get it 100% nicely livable, so add that to very low closing costs would still be a 2% or better. It's livable "as is" with baseboard heat, but long-term gas is preferred here as it's much cheaper and there are no extra deposits to come up with. --173.19.xx.xxx |
Rethinking 2% (by Chris [CT]) Posted on: Dec 13, 2017 4:20 PM
Message:
Around here your sub 1% if you pay market.
Plenty of deals around in the last 5 months I scored two home runs, so they exist. --24.45.xxx.xx |
Rethinking 2% (by Ray-N-Pa [PA]) Posted on: Dec 13, 2017 5:49 PM
Message:
A good follow up to this post is how are you finding deals currently. So far I have been doing alright with direct mail and my post cards. You have to purchase list to meet your specific wants and to pair down the number of pieces you send out.
Sid since you give so much to the group - Out of area owners of MFH that have owned for more than 15 years is a manageable list in my purchase area --24.101.xxx.xxx |
Rethinking 2% (by GKARL [PA]) Posted on: Dec 14, 2017 9:24 AM
Message:
Ray, where do you get your list? --172.56.x.xxx |
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