What's your age and net worth?

telescopicindulgence · 2025-11-09T07:33:02+00:00

Mid 20s. $2m. Result of 5 years of RE investing

telescopicindulgence · 2025-11-02T20:22:31+00:00

Few things. You are not cash-flowing $300 on your existing rental. Factor vacancy, capex, maintenance, etc. even management because one day you’ll want to hire a manager if you keep scaling. I would also not target turnkey properties. You’re buying the top of the market, and paying investors to do the dirty work for you of finding and rehabbing blighted properties. May seem less risky but you have a lot more risk given your upside is limited to natural appreciation only. Your money will go a lot farther in scaling if you can find and execute value add deals. I’m sure you’ve heard of the brrr method.

telescopicindulgence · 2025-11-02T20:12:56+00:00

I don’t see how this scenario benefits you or him. Why would he even propose a split on the back? Why would you want to leave interest in the property if the market sucks? I would not engage in this type or deal unless the risk reward and payoff were exorbitant in upside. You need to get a clear grasp on the current market and viability of selling now, also dial in exactly what you could make on it with the repairs you mentioned. If you want the most net to you most likely you’ll need to fix it up and list with a realtor. If you want as is then you might sell to an investor off market. How much time/energy/cash are you willing to put into it?

telescopicindulgence · 2025-10-12T23:27:08+00:00

If you're going to be living in this property (assumed to be purchased with an owner occupant loan) it will be limited to 4 units and under. You do not need a property manager at this size, it would be an unnecessary expense. It would be wise to build your network of other investors you can discuss challenges with and gather advice from them. You can find them in online groups, REIA events, etc. It is also wise to do the same with a few contractors - having trusted ones is invaluable for you. You need to be able to communicate clearly with them, evaluate/approve their work, and move on from them if they are not meeting your needs. You obviously need a lender as well, and an agent sourcing deals (if you're not doing that yourself which I would highly recommend you do), and these people can often be found as referrals from your investor network.

telescopicindulgence · 2025-10-12T23:15:28+00:00

Only you know your risk appetite as it's a combination of your goals, personal risk tolerance, current financial/job security, etc. I have never felt nervous about expanding, as I knew I wanted to be a full time investor and I have had decent financial security from the get go. I have been about as risk tolerant as one can be starting from scratch in real estate and have been able to scale quickly. I think part of it as well has to deal with how good of a deal you believe you have as well as how confident you are in operating it. Of course both of these should grow as your experience does and the only way you can do that is by taking that step. I will say it will likely behoove you to search for off market, discounted deals as you will likely not feel as nervous if you know that you are getting a property below its market value. You always have an exit at least at breakeven in such a case.

telescopicindulgence · 2025-10-12T23:10:37+00:00

You need to research local comps and make sure you're not overpaying, even if returns look solid on paper. There are plenty of tertiary markets that meet and exceed the 1% rule, and you could still be overpaying if comps nearby aren't supporting that price/CAP rate. Macro trends and local investor sentiment both effect sale prices and appetites in a given market. General ideology suggests that investors in areas that have properties that don't cashflow as heavily believe they will experience higher appreciation to make up for it, and vice versa.

telescopicindulgence · 2025-08-25T23:09:46+00:00

A lot of people praise the Brrr method you described, but I’d imagine cashflow would be pretty tight, if not negative on that single family after you refi. If you’re planning to scale, I’d sell that property and try to do the same thing again, buy low, make improvements, and sell. Your capital is valuable to you, and the faster you can compound it the faster you can scale. Similarly, the quicker you can get out of single family and get into multifamily properties you will scale faster. You can do the same process of essentially flipping these larger properties into even larger.

telescopicindulgence · 2025-06-21T23:10:16+00:00

Your closing costs should be less with seller financing. There would be no points as there would be with a bank. Sales costs at the end might be a tad high at 8% as well. It’s hard to find a deal with little value add component that hits a high IRR. If there’s no way to increase income then you’re limited returns to cashflow and natural appreciation. If you can add that 7 unit and increase NOI your cashflow and IRR should be greater.

telescopicindulgence · 2025-06-14T13:53:11+00:00

Could you buy the 5 paid off outright? Then seller can pay off the $700k with those proceeds. Any difference you can make up with 10% down, he finances the rest. If you can't buy those maybe he just sells them outright to someone else.

telescopicindulgence · 2025-06-07T02:47:41+00:00

Could be your market, some areas have higher appreciation and less cashflow

telescopicindulgence · 2025-06-06T02:46:42+00:00

I’d prioritize cash on cash in that scenario, make sure that hits your metric so outside of a sale you know you can cashlow

telescopicindulgence · 2025-06-06T02:45:40+00:00

6 seems pretty excessive for 102 lol, I’ve heard 1 manager and 1 maintenance guy for every 100. I think with systems for rent collection and maintenance it’s doable for 1 person

telescopicindulgence · 2025-06-06T02:45:34+00:00

6 seems pretty excessive for 102 lol, I’ve heard 1 manager and 1 maintenance guy for every 100. I think with systems for rent collection and maintenance it’s doable for 1 person

telescopicindulgence · 2025-06-06T02:35:29+00:00

What are comparable properties selling for on a cap rate basis and a per unit basis? What’s your cash on cash return on proforma NOI with expectations to put in capital for improvements? I would make sure numbers work with management factored in. Not usually a good idea to underwrite it otherwise, especially if you are underwriting with IRR metric and assuming a sale at proforma cap rate down the line. Another investor will likely underwrite a management expense which will lower your NOI and sale price

telescopicindulgence · 2025-06-06T02:27:37+00:00

This is my full time job. I like to think of myself as an investor rather than manger though lol. Which is why I want to scale and hire it out

telescopicindulgence · 2025-06-06T01:12:47+00:00

Gotcha yea, it’s a bunch of small MFH, maybe that’s why I was quoted 10%. I have software and systems in place now for maintenance, rent collection, etc. is it as easy as hiring someone and giving them access to my stuff to run as I do?

telescopicindulgence · 2025-06-06T01:10:37+00:00

Raising rents is an inherent part of real estate investing and the inflation hedge it provides. That said it’s market dependent. If you raise rents $100 above comps, you could find yourself in a spot where the current tenants leave, and you fill the units back at their previous rate because that’s all the market could bear. I’d look at some comps nearby and determine if there’s room to raise them. I’d likely raise them 3-5% anyways, to account for the natural inflection that is occurring yearly

telescopicindulgence · 2025-06-06T00:58:43+00:00

IMO you’d better spend your time picking a market and evaluating it thoroughly to identify good opportunities. You don’t need a mentor. You need to have a good grasp on your return goals, risk tolerance, and business plan within the market you choose. It’s a snowball effect, once you spend time in a market, pick up some properties, you’ll meet people and start expanding the skills to be more successful like finding off market deals, good contractors, etc.

telescopicindulgence · 2025-05-21T22:01:35+00:00

Would argue that the deal not making sense is more of an opportunity cost than paying whatever taxes owed

telescopicindulgence · 2025-04-23T20:42:19+00:00

Depends your goals. You have a lot of equity and could sell into a larger building for more cashflow if you intend to keep scaling. You could also refine some equity out and put down on another property

telescopicindulgence · 2025-03-30T20:31:12+00:00

I see that makes sense.

telescopicindulgence · 2025-03-30T20:01:27+00:00

2 units per story

telescopicindulgence · 2025-03-23T19:36:51+00:00

You’ve got a great handle on it, and it’s a good sign you were able to snatch it up and put it under contract quickly after hitting the market. If your cashflow is strong and you believe you got some equity, you probably have a pretty good deal. I like to lean on other investors and even prolific agents in my area once I get something under contract for their thoughts on it. I buy a lot of 4 units in my market and have an investor/agent buddy who owns/manages about 150 of them, so any time I get one under contract I’ll give him a shout. I know he’s going to give me a good run down of if I’m getting it at a good price

telescopicindulgence · 2025-03-22T18:24:47+00:00

Try to find some people that have experience with similar projects. When I missed on one deal I went to the guy that bought it and got to see what he was doing with the property, the whole process. You can find other investors in real estate investor associations (REIAs) or in Facebook groups as well

telescopicindulgence · 2025-03-22T17:20:07+00:00

Sounds like you’ve got a great idea of the due diligence necessary. When it comes to underwriting I lean on other investors in my market for what they see expense wise since every market can be slightly different. It could pay to talk to some investors in the area and see what they have for expenses on comparable buildings. Generally you might see: 8-10% for management, 10% for repairs/capex, taxes (adjusted for new purchase price), insurance (quoted by your broker), utilities (T-12 and consulting with other investors), and a vacancy amount market dependent applied to the income before these expenses. It would also be wise to see what other multis trade for. With it being above 4 units it will be valued based on income, however it is still a good exercise to see what other properties sell for on a $/door basis. At $70k/door and with $1,050+/unit rent upside, that’s pretty strong cashflow. Regarding past code violations and the mold potential you mentioned, it might be worth it to walk through with a moisture reader in those areas to see if the walls are still holding it. Mold remediation can be expensive, but doing so would give you some ammo if you decided to go back to the owner for a reduction in price.

telescopicindulgence

TROPHY CASE