Investing Niche and Thoughts

I will use this page to describe my personal beliefs of what is successful in the real estate investing market, as well as some other useful tips and resources.  I will also expose several myths I have learned to be inaccurate regarding finances and money in general.  Everyone may not agree with my thoughts or processes, but the following methods I have personally done and know they do in fact work and are true.  Like anything in life, there are several ways to do things, so if you have something that you feel is better or don’t agree with, please share your thoughts or question a process. This can have the ability to help everyone interested!

2 thoughts on “Investing Niche and Thoughts”

  1. 1. Homes in distress (can be either structural or the owners financial). They need to be purchased
    below market allowing the ability to force appreciation with rehab.

    2. “C+” or better neighborhoods. Want to stay away from expensive as well as high crime
    neighborhoods.

    3. 1% rule must apply for me to even look into them.

    4. Each must cash flow at least $200 per door.

    5. Prefer to buy and hold, but if a deal on a flip comes along I will take it, however it must
    meet the 1% rule as well as cash flow at least $200 a month.

    6. Main purpose of buying a flip will be to generate capital to purchase a long term income
    property, not a primary income source to live on.

    7. Stay within the rental price range of $700-1400 a month.

    8. Look for additional “value adds” like subdividing utilities in multifamily, adding storage,
    ect.

  2. The benefit of larger multifamily buildings. (5 or more units)

    1. More stable (can have several units vacant and still have income)
    2. Less competition (when dealing with properties $1,000,000+ there are not as many people able to afford, therefore better deals can be had.
    3. Competing against other investors, not home buyers looking for an owner occupied home. A home owner will pay market or higher for a property they love. Investors dont usually let their emotions control the price, it’s based on the numbers of what it will produce. If the math does not work, then it’s onto the next.
    4. Easier to add value. Combine trash with a dumpster at a single location is cheaper than several cans spread across the county. 1 additional storage shed can be built with 5-10 units for close to the same price as a single one can, but the single won’t generate as much income as 5 rented.
    5. Easier to manage. All units in 1 central location can be managed cheaper than several spread out.
    6. Repairs/Maintenance cheaper. Will get discounts from subcontractors like pest control when there are several units at one address as opposed to several single family house miles apart.

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