UVESTLY

Out-of-state investing · with Heather Marchant

Priced out of your own market?

Heather Marchant · Uvestly
UVESTLY
Scan to join

Phones out

Point your camera at this

Your phone is about to price a house on your street and play along with every deal. Keep it next to you.

or type this in go.uvestly.com/w
UVESTLY

Where I live · Salt Lake County, Utah

Let's price the house on my street

Four bedrooms. The kind of house a family actually rents.
Good schools, good street, nothing wrong with it.
Twenty percent down, and a tenant paying the rent.

Rent and taxes are estimates for a house this size where I live. Utah taxes a rental on its full value and a house you live in on 55% of it, so the tax line on a rental here is nearly double.

4 bed, 2.5 bath · 2,400 sq ft
Price$675,000
Rent$3,100
Mortgage, taxes, insurance$3,601
Management$248
Cash flow−$749
Cash in, 20% down$135,000
Cash flow for the year−$8,988
Now yoursType your zip code on your phone. It prices a house on your street the same way.
UVESTLY

Hi, I'm Heather. Here's what I do

Heather Marchant and her family Heather on the Ouray via ferrata
What I doI find rentals in the markets where the math still works, run every one through three filters, and stay with you from your numbers to the keys.
Where I liveDraper, Utah, with my husband and our four kids. Weekends are hiking, biking, and the odd via ferrata.
My first rentalFayetteville, North Carolina. I owned it eight years and never once stood in front of it.

I look at other people's rental deals for a living. I pass on most of them.

UVESTLY

You are not priced out of real estate
You are priced out of the zip code

Nothing about the asset changed. A bank funding most of it, a tenant covering the note. What changed is that the place you happen to live stopped being a place where that arithmetic works.

UVESTLY

Same wallet. Same week

One house here. Or two over there

The house on my street
−$749

One house. $135,000 down. Minus $8,988 for the year, which is a 6.7% loss before anything breaks.

Perry and Yukon, Oklahoma
+$1,173

Two houses. $135,480 down. Plus $14,076 for the year, which is 10.4%.

Same money, same month, same person. A swing of $1,922 every month, and the only thing that changed is the zip code.

Your phone just ran the same thing with your down payment.

UVESTLY

Why it's worth chasing at all

Four returns. One investment

A note pays you one way. A dividend stock pays two. This one pays four at the same time, and a bank will fund 80% of it. Nobody lends you 80% to buy a stock.

Return one
Cash flow
What's left after the mortgage, the taxes, the insurance and the manager. The only one you can spend this month.
Return two
Loan paydown
Your tenant retires your mortgage for you. On interest only it starts in year eleven, and until then you keep that money as cash flow.
Return three
Appreciation
The house is worth more later. The slowest of the four, and the one you control least.
Return four
Tax treatment
Depreciation shelters money you actually collected. A loss on paper that you keep in real life.

Most people count the first one and stop.

UVESTLY

How I look at every deal

Three filters. Every deal

Everything a seller tells you is a claim. These are the three places you check.

Filter 1
The Market
Twenty minutes, and most deals die right here. This part is easy.
Filter 2
The Numbers
A few phone calls. Harder, because you're checking someone else's arithmetic.
Filter 3
The Questions
Days. This is the hard part, and the list is never finished.

Next: four real deals that crossed my desk. Buy it, or pass? Same money on all four: 20% down, interest only. Three of them die, one at each filter.

UVESTLY

House A · buy it, or pass?

361 Bay Meadows Dr, Aiken, South Carolina
Aiken, South Carolina
4 bed, 2 bath · new construction, 1,672 sq ft
Price$285,400
Rent$2,200
Mortgage, taxes, insurance$1,607
HOA and management$187
Cash flow a month+$406
Buy it0%
Pass0%
UVESTLY

House A

The best-looking of the four. It failed filter one

Filter OneEasy
The Market
  1. Will the law back you up if the tenant stops paying?
  2. Who's hiring within twenty minutes?
  3. Can those people afford this rent?
361 Bay Meadows Dr, Aiken, South Carolina

361 Bay Meadows Dr, Aiken, SC

The proforma says it in writing: "Rents confirmed with local property manager."
I called four of them. The first three danced around vacancy. The fourth gave me a straight answer.
Aiken is overbuilt. Expect two months to place a tenant. That's about $4,100, or ten months of that $406.

So I passed. Paper doesn't know how long the last one took to rent.

UVESTLY

House B · buy it, or pass?

6317 Lemongrass Drive, Columbus, Georgia
Columbus, Georgia
3 bed, 2 bath · new construction, 1,410 sq ft
Price$245,360
Rent$1,700
Mortgage, taxes, insurance$1,384
HOA and management$162
Cash flow a month+$154
Buy it0%
Pass0%
UVESTLY

House B

Brand new, nothing to fix. It failed filter two

Filter TwoHarder
The Numbers
  1. Taxes on the finished house, not the empty lot
  2. Rent from a signed lease, not a range
  3. Insurance quoted, never estimated
  4. Price last, not first
6317 Lemongrass Drive, Columbus, Georgia

6317 Lemongrass Dr, Columbus, GA

Rent on the proforma
$1,700

A range built from dollars per square foot. Nobody had rented this house, or one like it.

What 31907 actually rents for
$1,500

One 2,002 sq ft 3/2 gets $1,500. Ours is 1,410. Cash flow goes +$154 to −$46.

A builder I've used for years told me "rents in the $2,050 to $2,150 range." Nobody signs a range.

UVESTLY

House C · buy it, or pass?

1733 NE 28th St, Renton, Washington
Renton, Washington
3 bed, 2.5 bath · 2,015 sq ft, with a basement apartment
Price$785,000
Rent, both units$4,461
Mortgage, taxes, insurance$3,851
HOA and management$357
Cash flow a month+$253
Buy it0%
Pass0%
UVESTLY

House C

Two rents, one mortgage. It failed filter three

Filter ThreeHardest
The Questions

Every one of them cost somebody money before I learned to ask it. This house died on a question nobody asked.

1733 NE 28th St, Renton, Washington

1733 NE 28th St, Renton, WA

On the page
+$253

Positive from day one.

"Are the utilities on separate meters?"
−$167

One meter. The owner pays water, sewer, gas and electric for both units. About $420 a month.

And that $4,461 was Zillow's guess, not a lease. The rental across the street gets $3,708.

UVESTLY

Filter three · the whole list

Thirteen questions. Ask every one

Separate meters? Is there an HOA? Who mows the lawn? Rent ready, or a list to fix? Special assessments coming? When does the lease end? Is the fridge included? Is the yard fenced? Where does anyone park? Is it in a flood zone? Can you even rent it out? Who manages it today? How big is the deposit?

The one nobody thought to ask is the one that costs you.

Want the whole checklist? Put your email in on your phone and it's yours, with what I look for under every one of these.
UVESTLY

House D · last one · buy it, or pass?

3308 S 23rd St, Chickasha, Oklahoma
Chickasha, Oklahoma
Duplex, 2 bed each · 1,966 sq ft · finishing October
Price$345,000
Rent, both units$2,550
Other income$204
Mortgage, taxes, insurance$1,851
HOA and management$216
Cash flow a month+$687
Buy it0%
Pass0%
UVESTLY

House D · through all three

Nothing went wrong. That's the whole story

3308 S 23rd St, Chickasha, Oklahoma

3308 S 23rd St, Chickasha, OK · +$687 a month

Market. Chickasha. An industrial park going in by the airport and a new water plant. The governor called it the biggest private investment in the town's history, and nobody outside Oklahoma is writing about it.
Numbers. Nothing is signed until it's built. They market $1,350 a side. I ran it at $1,275.
Questions. No HOA. Appliances and a fenced yard included, and the seller prepays a year of management.

Boring is what survives three filters.

UVESTLY

The part everybody worries about

You are not doing this on your own

The arithmetic is the easy part. What people actually ask me is who turns the key, who takes the call at midnight, and who is standing there when I am not.

Financing. Brendan Kolesar.The best rates I have found, and he reads a settlement statement line by line.
Insurance. The Uvestly master policy.A pooled rate, and it covers the houses you already own.
Management.I call the manager before you buy, not after, and I negotiate the fee.

I never stood in front of my first rental. Eight years, and the team did the standing.

PropertyManagersLendersInsuranceAccountantsIRACustodians1031ExchangeCostSegregationEntitySpecialistsAttorneysTHE OWNERYOU

Tap any seat on your phone to see what that person does for you.

UVESTLY

How you pay for it

The house qualifies. Not your paycheck

The loan
DSCR
The rent has to cover the payment, and that is most of the test. No tax returns, no employment check, and you can close in your LLC. Every property I bring you cash flows, so every one qualifies.
The structure
Interest only
The same thirty-year loan, with the first ten years interest only. A lower payment and more cash flow each month. You can still pay principal whenever you want.
The catch
Prepayment penalty
Usually zero to five years, often six months of interest. Most let you pay down 20% a year without it. It only matters if you sell or refinance early.

Flexibility is the point. Brendan prices every one of these, and he'll run yours.

UVESTLY

The question everybody is waiting to ask

What does this service cost?

Nothing. The seller pays my commission.
I pre-negotiate everything. Going direct doesn't get you a better price. A builder won't drop it for one buyer and lower every other house on the street.
Even if you never buy. Bring me something you found on your own and I'll walk your numbers with you.

You never write me a check.

UVESTLY

If you want me to do this part

This is my process

Same three filters. I just run them before you ever see the house.

Step 1
Tell me your numbers
Step 2
Review the winners
Step 3
Buy, and I stay
Every year we sit down, go through the whole portfolio, and decide what moves next
UVESTLY

One thing to take with you

You're not priced out.
You're one market away

1 The Market
2 The Numbers
3 The Questions

Ask me anything on your phone. I answer every one.

Schedule a free consultation

Questions

Scan to save Heather's contact
Scan it and I'm in your phone

No app and no signup. It drops straight into your contacts.

Or book a free consultationuvestly.com/contact

Heather Marchant · Uvestlyheather@uvestly.com  ·  (816) 744-6540  ·  uvestly.com
Powered bycreatearukus.com

Questions

Click or press →