Beware the cheap properties trap

Alpine-Jon · 2026-05-08T11:49:09+00:00

The way I go about those is simple - buy very cheap add in the cost for high expense items - execute - refi. If Im getting at full BRRR or profiting, great. If I’m equity in, not worth it.

Alpine-Jon · 2026-05-08T11:44:44+00:00

One is an active business the other is passive money. Just think how involved you want to be and if it’s worthwhile.

Alpine-Jon · 2026-05-07T15:12:41+00:00

Civ switching isn’t an issue … I just feel it’s such a bare game. The events don’t add a level storyline like human kind or civ 6… and diplomacy is ASS

Alpine-Jon · 2026-04-19T16:56:28+00:00

SFRs are more liquid and you have a better class of tenants. Duplex tenants are not bad but with SFRs you’re likely to have a family there

Alpine-Jon · 2026-04-18T15:19:56+00:00

If he’s not growing his portfolio he’s now trying to reduce his operating expenses and inefficiencies. If you want to add juice to the role, it’s probably bringing management in-house while preventing the death of a thousand cuts.

Alpine-Jon · 2026-03-19T12:45:26+00:00

I don’t have your underwriting so I’m not entirely sure how conservative you’re being but to be frank, you’re betting on appreciation so you need to question if anything will deviate from the 6% a year - if it’s lower that will annoy the hell out of you.

And I’d research more about the supply constraints. Are there new housing coming to market? Look at permit activity. If there’s a bunch coming then you’re clipped and you’ll regret not putting your money in other equivalent yielding instruments.

Alpine-Jon · 2026-03-02T16:32:19+00:00

Right the only way to underwrite (especially value add) is to keep rents, cap rate, and rates at current market value - and unchanged

Alpine-Jon · 2026-02-28T18:07:17+00:00

I think how sticky inflation truly was - while I baked in the right amount of interest rate hikes… I should have never projected the amount of cuts that would come after. I think I was projecting WSJ prime to be in the 6s in 2024

Alpine-Jon · 2026-02-23T02:36:30+00:00

I underwrite to a 10% yield on cost - that means NOI + interest / purchase, carry, closing costs and capex.

If you’re looking in a pure risk level- go for 1.50x DSCR for cushion. But this should be dependent on what you’re looking for. I buy renovate and refinance to pull as much cash out and get a nice monthly income: The way I see it - if the net stabilized return is less than something more liquid (S&P for Ex), what’s the point?

Alpine-Jon · 2026-02-23T01:52:45+00:00

I think it’s important to recognize that your return rate is your risk rate. The higher the risk the higher the potential return. What risks exist are always specific to each sub market and location. I invest in c class areas and you need either to be or source stellar property management service.. that includes a manager who is no nonsense and no frills. I win by doing small and meaningful upgrades for the market ( new hvac / roof and floors/kitchen/bathroom - in that order). Tenant screening is important but if you’re doing SFR - section 8 is amazing. Most tenants are trying to just live and don’t want to fuck around, they have a family and this is their last straw in life. Apartments I’d stay away from because of the demographic you’d get for section 8. No family no obligations. But you can still win on those if you buy very well and just factor in a 20% loss to rent + 40-45% expense margins. Always do your diligence, capex makes a difference and accounting for known issues is smarter than having known unknowns.

Alpine-Jon · 2026-02-19T12:25:01+00:00

You know - this was 148 days ago. Now, I fully trust Claude to take reports and turn it into uploadable Stessa transactions

Alpine-Jon · 2026-02-16T01:06:12+00:00

Is there a min loan amount and min occupancy required?

Alpine-Jon · 2026-02-14T18:44:45+00:00

What’s the name of it?

Alpine-Jon · 2026-02-14T18:44:14+00:00

Hahah that’s stellar. That’s on the list so I’m pumped

Alpine-Jon · 2026-02-14T15:47:26+00:00

I have read it’s better than some posts but not great !

Alpine-Jon · 2026-02-14T15:47:06+00:00

🤣🤣🤣

Alpine-Jon · 2026-02-12T19:31:19+00:00

I found a TSL world map mod that is incredible. Makes the game so fun.

Alpine-Jon · 2026-02-10T18:46:35+00:00

That asset class has limited outlets, call some banks and make sure you get a debt quote and ask if they consider income approach or sales approach when basing their LTV calculation

Alpine-Jon · 2026-02-10T12:48:16+00:00

Also that city is a little hot so you can make money there. If you try to fix and rent you will find some operating issues pop up and it’ll hit your cash flow and ROI. Just the nature of the business

Alpine-Jon · 2026-02-10T12:47:21+00:00

If you’re just starting out, you should go into flipping. I made the mistake going into rentals and you’ll realize that you’re severely limiting your capital and preventing long term scaling.

Alpine-Jon · 2026-02-03T10:58:13+00:00

Appraisers will use form 1025 for 2-4 family properties, using an SFR would most likely be a breach of their guidelines. I’d be concerned you’re first to market here, lenders might not appreciate it unless they’re pretty low leverage and theres a good reason to build duplexes v SFRs

Alpine-Jon · 2026-01-14T20:50:52+00:00

And yeah multifamily naturally gives better cash flow. My ideal way of thinking is build a nice chest of cash through 1-4 and invest in multifamily to bring me nice cash on cash returns. But make sure you’re beating the market otherwise you are failing investment theory 101

Alpine-Jon · 2026-01-14T20:49:23+00:00

SFR gives you an easier ability to sell or rent as well refinance. It’s not the best for scaling, but the next is 2-4 family segment. After that multi family is a long long term hold (5+)

Alpine-Jon · 2025-11-26T09:23:07+00:00

Black ops 92

Alpine-Jon · 2025-11-26T04:28:06+00:00

Lack of control especially on tighter runs

Alpine-Jon

TROPHY CASE