I recall a handful of posters over the years having built up a portfolio of residential investment properties. My career is in commercial real estate as are most of my real estate investments. I like that lane and plan to continue that route however a close friend and I who talked about building up resi properties years ago wants to revisit the residential property route together. We talked about it for a number of years. I’m not opposed to it at all as a way to further balance out my investments. His background is in operationally in multi-family properties but we’d be evaluating those and SFH’s to gradually build over time. The near term focus is long term rentals not vacation rentals. He’s well equipped to do rehab projects but the goal isn’t to be flipping. Too time consuming for me and not fair to put that on him without me being there in Michigan. I’m in hawaii.
With that said, my expertise is commercial and I want to be sure I’m not overlooking residential obstacles by not knowing the pitfalls and approach taken in that sector. That will help me determine if I want to dive in our not or stay down my current path.
If any of you guys feel like sharing some info we can DM or feel free to fire away in here. I’m a numbers guy but it’s the qualitative aspects of the business I’m curious about. The approach, building a power team, target CoC returns typically pursued by some of you (or if you do IRR rather than cash returns), etc. My biggest thing is pegging rental expectations. At the moment we’d be looking SE MI and West MI where we have contacts (and him). But on these smaller homes in the 100k-250k range a different in only 100-200/mo in rent has a massive impact on returns so really trying to see the methods you guys use to feel you’ve run a solid pro forma.
thanks all
With that said, my expertise is commercial and I want to be sure I’m not overlooking residential obstacles by not knowing the pitfalls and approach taken in that sector. That will help me determine if I want to dive in our not or stay down my current path.
If any of you guys feel like sharing some info we can DM or feel free to fire away in here. I’m a numbers guy but it’s the qualitative aspects of the business I’m curious about. The approach, building a power team, target CoC returns typically pursued by some of you (or if you do IRR rather than cash returns), etc. My biggest thing is pegging rental expectations. At the moment we’d be looking SE MI and West MI where we have contacts (and him). But on these smaller homes in the 100k-250k range a different in only 100-200/mo in rent has a massive impact on returns so really trying to see the methods you guys use to feel you’ve run a solid pro forma.
thanks all
