Alex good points,

back in 03 04 05 , the Californians were the Aussies,,,, Huge equity run up, easy home equity loans, can buy a rental in the mid west for the price of a mercedes or less…..

And thee were new home developers that sold entire subdivisions to out of state owners. Think Pheniox and Vegas, Central CA and parts of Florida….

I had my hand in that one year, As I sold almost 30 million dollars worth of single families in Portland to Bay Area investors. We did have a Duplex project 22 duplexes and I bought and sold all of those to the out of state investor. Duplex sold for 330k and rented for 900 a side and I sold all 22 in 4 weeks or less. It was a feeding frenzy back then.

The fact remains though, in certain markets they have been and will always be high percentage rental areas. City of Memphis for expample has been 50% or better Owner Occ to renters for decades.

Basically you can follow the areas that were already high ratio rental areas spinkle in sub prime and you have a huge concentration of rentals vis a vi Owner Occ.

But thats the give and take you invest for cash flow return's and your going to get those higher % rental ratios.

here is Portland were no foriegn investor buys unless they are buying investment grade, SFR Rentals are only 10% at most , and thats only because of what happened in the sub prime markets in 04 we were less than 6% of exisiting SFR stock was a rental.

Were I live I built 14 homes, And 2 of them are rentals Although they paid 350k for each home that rents for 1600.00  a month.

More like Aussie numbers if you were in their country.

Most investors for rentals in our area buy plex's and apartments.

And they buy at 5 to 8 caps and an 8 cap is going to be a pretty crappy building that needs lots of deffered work, and or has a 100% hispanic occupancy and is a maintenance hog…. Hispanics do not complain and they pay their rent, but when they leave you need a full RENO to get it back into shape…. They are brutual on the plumbing cooking with grease and down the drain it goes. and multiple generations in one home so toilets get flushed 2 to 3 times normal, showers are going all the time, just very very intense on the mechanical componants.

Now if the 49ers can beat those Saints that will be a good day Mate.

far to complicated and James bond ish for a simple US property investment

Be cautious with towns closer to the mexican boarder a lot of tenants fled.

Vacancy factors are something to be look at.

I own a Security alarm company in those markets and its a booming business

wi

agree with your post except the 80 to 90 a foot to rebuild. The quality of the houses we are buying at the low prices. can and will be built today and in the future for 55 to 65 a foot. not 80 to 90.

Right now lots are selling for 2 to 5k… These vinyl village houses with 8 foot ceilings and the cheapest of everything, Cabinets, carpets fixtures, counter tops, 2.x 4 construciton viynl siding, virtually every component of these homes is the least expensive product a builder can buy. All that on houses that are built on slabs and put up in 60 days start to finish

So in my mind these new construction homes that are on the market at 120 to 130k, are being built for 100k all in or 50 to 60 a foot, the builders are marking 15 to 30k profit per house…

They build them quick and have volume.

In our market in Oregon we take 90 to 120 days. our cost to build is 55 to 60 plus lot and hook up fees which would be another 100k minimum. But our standards are hardeplank up graded cab’s granite and tile surfaces. bronzed oiled hardware, Stainless gas appliances front and back lanscaping with sprinklers.. ANd our landscaping actually includes bushes and other tree’s not just sod.

jlh

Kyler

You won’t be buying any property from my clients because they get their check for the same amount each and every month on the same day of the month you can see my clients testimonials to that fact on my web site

No question there are going to be huge amounts of inventory available to first gen wholesalersmfrom frustrated investors

law sys

this is the concundrem right now nationwide, what is the true value…..

Atlanta particularly, is dominated by foreclosure short sales. No one really knows the true value, where as other markets most of the foreclosures are pretty beat up and require a ton of work thereby creating added value.

Most of what I see in Atlanta is very new homes or newer that only require flooring paint and modest fix up.

I just look at the atlanta market one way. By the best neighborhoods you can. If your buying substantially under reproduction values.
at some point there will be a return to a higher price.

We bought one this week for 38k that needs maybe 3k. and there is brand new construciton 10 houses down selling at 120k same house same sq ft. etc etc. So what is the value?????

Sewer is one of the biggest problems we encounter in older homes with tree lined streets and yards.

And since every home in our program I own,  Its the first thing I do.

If there is not a PVC riser indicating new to newer sewer line. I put in a new sewer line from the st. to the house as well as repipe the whole house in pex. Sewer line runs 1500 to 3k… Although here in Portland OR you will pay double to triple.

Then unless the heating and airconiditoning is new or next to knew and because I own and have to maintain these I replace with new and the 10 year warrenties and I always use the right tech's for these jobs. Like Alex rather pay a little more and get it done right and if there is a problem the tech comes back on their nickel.

Same with the Roof if its over ten years old I reroof.

the real issues I dealt with as a hard money lender to literally 1000 plus clients was their turn key operator cutting corners and spending far too much money on cosmetics and not enough on the mechanical and critical systems.

The turn key guy is selling a pretty looking house. Some one who is building rental portfolio is looking for Function and limiting service calls… As KC says service calls kill you. 

And PM business is entitled to mark up on service calls other wise pretty tough to stay in business.

Just FYI,,, When and if I ever have an Aussie invest in our Note program I have made arrangements with my local commercial bank to send ACH  ( thats our version of wire payments that are free) to our investors. This is what we do with our US clients, and I did just get an investor from Kuala Lampor, although she already had a US LLC set up so her ACH goes to that account on the 15th each and every month . Same payment never varies never a cash call never a call from a PM… Sweet deal..

Also my bank charges 15 dollars for wires not 30.  And there is never anyone in line at my bank…. Small home town commercial banks are where its at in the states. You walk in the The branch manager walks out shakes your hand you have a cup of Joe shoot the breeze, talk about your business with them….All very civil and social.

I would never bank at a large face less institution…. Ya know when you have a customer service issue they send you to a little phone and you talk to someone in a call center.

I used to have pretty significant lines of credit with Wells Fargo  Multi 7 figure, I went to buy a work van for the company and got turned down for an auto loan. Different department approves those. So there I am with a Huge credit line of which 500k was unsecured. And they will not approve me for a 30k vehicle loan.  I soon left that bank and never looked back that was 15 years ago. Small bank Large service.

My questions is:

Do you have a real estate license to sell real estate in the US?

Cheeves I can only guess the condenser cannot go on the roof because they would be come lethal flying objects in a Hurricane:)

DCHP:

Now your getting it…and this time of year you can delay on the condenser they won't need it for a few more months.

Being a private pilot and somewhat instrument profiecient I am always reading and studing. And there is a good series from an instructor Jeff Moss out of Santa Monica… He has a series of CD's called flying like the pro's..where he instill
s commercial pilot standards for us PP…

So maybe whats needed next is REHAB like the PRO's… A down and dirty little CD with all the tricks of the trade and the ones your Turn Key Rehabber really does not want to mention as to scare you to death about the petty theft that is rampant.

when I was doing a lot of detroit loans and rehab loans…. Doug at Debeers co. had a retired cop that signed the workers in and out on a check list. What they found out is that the workers were coming back in that night and stealing what they just put in.

Tough game this turn key rehab…. And let me tell you all these little issues all add up to dollars that make the Pro forma % returns just best guess and not reality over time.

JLH