Real Estate Junkie (Part 2)

…..Continued from here.

 

I would go back out of town to buy property.  This time I would buy single family homes.  The row-house complex was too difficult to manage for many reasons.  It was also in the absolute worst area of the city, flooded with drugs, prostitution and violence.  I didn’t want any part of that again.  It was unsafe and definitely not worth it.  This time I would buy homes in slightly better areas, attracting more desirable tenants.  I would stay in low-income neighborhoods, for the best value and return on the buck, but not extreme ghettos.  I would buy in many different areas, as not to put all my eggs in one basket, and avoid herding tenants to a condensed group, which can also be problematic.  I would buy properties that needed some work, but not too much, again this is the best value.

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My plan was to pick up as many properties for short money as I could without creating too much of a time commitment for myself.  I did not not want to leave my kids 4 days a week again, like I had when I did the row-house project.  That was too much time away.  This time would be different.  My pace would be much slower.  I allotted one day of travel per week.

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I would also have guys down there that would complete the renovations under a contract.  I was no longer willing to supervise a crew.  I would only turn over  2 homes at a time ensuring that I was able to adhere to my one day a week on-sight goal.  I would use that day to check progress, look at potential new purchases and rent the units.

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The plan worked.  I spent the next 2 years back and forth, one day a week.  I had completed 17 homes.

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At the end of 2 years I got VERY lucky and fell into a great deal.  I put my out-of-town single family rentals on hold.

 

 

Continued here…..

 

 

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Real Estate Junkie (Part 2) — 2 Comments