I bought 6 properties this year in 3 states, and also sold another property. Of the 6 bought 4 are buy and hold, which I already rented. I will be a flip and the last one is a rehab, probably end up keeping and renting.
There is no doubt the land space is getting more and more crowded. Seems like every former house-flipping “guru” is now teaching land. Sellers are getting multiple offers which is pressuring margins and increasing DOMs even as costs continue to rise. We are pulling back but there are still deals to do, just far fewer of them.
David, that’s an impressive track record for the year. Congrats! I love the mix of buy-and-hold, flip, and rehab. Are you finding your rental properties through direct outreach, or are there other strategies that have been working well for you lately?
Great point, Ross. Land is definitely heating up with more competition. Are you adjusting your outreach or deal criteria to stay ahead? I’ve noticed that being strategic with how you connect with sellers can make a big difference in cutting through the noise.
Absolutely. Taking action is the best way to figure out what’s working. When you dive into a new strategy, how do you measure success or know when to pivot? Always curious to hear how others approach this!
3 properties were new builds directly from a builder with surplus built inventory, was able to get fixed rate mortgages for 4.25% and 4.75%, which made the monthly costs reasonable. 2 properties were HUD repos, where I got them $119,000 and $65,000 below as-is appraisal value. The last property was bought at Sheriff Sale for $84,000 below ARV. And the funds for 4 of the properties came from selling one SFH and doing a Section 1031.