Anybody that’s followed the flipping junkie blog for any length of time knows I don’t care much for rentals (really, more specifically, managing rental properties). I really enjoy just fixing up a piece of junk house and selling it quickly for a nice profit. I’m sure I could learn to love rentals if I just knew how to do it with as little hassle as possible. That’s why I decided to have todays guest on the show. He is an expert on cash flowing houses and apartments.
This episode was packed for of information from Joe Fairless. He controls more than $21 million worth of real estate, attends more Third Eye Blind concerts than anyone else, is an author and comedian, and host of the very popular Best Real Estate Investing Advice Ever podcast.
Joe was very courteous today as I had problems with audio that delayed the recording of the interview for about 5 hours…. Luckily, he was flexible and was still able to be on the show. So, extra thanks to him for that.
In this episode Joe talks about the four single family properties he bought in Texas (he lives in New York) for cash flow (he sold one to cash out). He shares with us how he calculates the cash flow using the calculator mentioned in the links below.
He also shares insight into his first big apartment complex deal….168 units that he had to raise over a million dollars for!!!!
Do you know the difference between economic occupancy and physical occupancy? I didn’t. Joe breaks it down for us and why it’s so important to find out about economic occupancy when evaluating an apartment deal.
Joe also shares his ingenious strategy for determining if an area is improving or decaying by checking out two local restaurant chains that are in almost every city.
There are some great rules of thumb also mentioned throughout the show. Some are:
* 1 manager for every 100 tenants
* $250 per unit per year should be set aside for cap ex (capital expenses like roof replacement, exterior maintenance etc)
Enjoy the episode!