I’m back in the game, lol. We purchased the house we are living in 1.5 years ago and are now hunting for our next one in a specific neighborhood. We will rent out the current house for $500/mo cash flow. I chose this next neighborhood because it has the best elementary school in the area and commands higher rents due to location, schools, and neighborhood amenities.
I want to direct mail all the 4 bedroom homes in this rather small neighborhood to try and get a target price of $165k or less. If I really like a house I’ll buy it for myself using a VA loan and if not, I’ll wholesale it to a retail buyer for btw $185k-$200k going the double closing route.
My question is what mailings would work best for this neighborhood? How often would you send them? Monthly or more often?
I’m trying to get into the zone for the best elementary school at a price that will let me rent it out profitably if I decide to move again later. I should use all the RE techniques I’ve learned here to get a house $20k to $35k below retail, right?
I’m hoping I find more than just the one house for me. These houses sell ridiculously fast so I’m not worried about finding an end buyer. I’m more worried about the details of a double closing. I just need help figuring out what types of mailings are most effective and what they should say to rope in this demographic. :beer
I believe once a month is good, timed for an arrival between the 1st-15th, if possible.
Just my 2 cents…honestly, I think your margins are too tight and you’ll end up with
The VA is a the way, but ZERO down works for what you’re trying to do if you have
a wider variance between the buy and sell price points.
Another strategy I’ve utilized and recommend is look into multifamily units (3-4 families)
as the VA considers these residential. You can get 2 multi families in as many years and
have better cash-flow(assuming the numbers make sense).