All Forum Posts by: Dave Pate

For years I have used this worksheet for calculating cash flow on apartments and SFR. Book mark it.

http://www.goodmortgage.com/Calculators/Investment...

@JosiahCooper  I also like to see what Gross Rent Multiplier numbers look like.

Make a spreadsheet that lists properties you want to analyze. If you have property, include it on the list for comparison. Make some formulas that are meaningful like GRM, advertised CAP, actual CAP, cost per unit, annual rents, occupancy, etc. After seeing several properties on your spreadsheet, you will better understand rental property performance.

It's the Renatus group. They won't tell you their name until the 2nd or 3rd exposure/webinar. I know because I worked with the group for a while. I bought the basic education. What a waste of money. It's a system designed to make a select few some money. But not you. Despite what they tell you. Run.

My first rental property was a historic 1913 duplex, over and under, 4 square style. Advice from other investors at the time concerning the price and age of the house were not very positive. I inherited one tenant and self performed a rehab upstairs. The house was in a good location near downtown.  I kept it rented for about 10 years and managed it myself. I gave it a little bit of cool factor with a few upgraded fixtures which got me top rents in the neighborhood. I had a mortgage and the duplex cash flowed only about $400/month. 

Mistakes: nothing major. Maybe I could have used a contractor for the rehab and gotten it fully occupied sooner. I could have also used a management company.  

Done right: Because this was my first property, I think self managing was a good learning experience. My tenants knew I cared about the property because they saw my face and heard from me often. Tenant screening and paying close attention to credit scores and ability to pay.

Fast forward to putting it on the market last year. I gave it a fresh paint job and it sold (occupied) right away. With a little appreciation and mortgage pay-down on the duplex, I was able to buy a 5 unit building (1031 exchange) and rehab with no mortgage. This is why I love real estate investing: turning $400 per month (with a mortgage) into $2,000 per month (free and clear) and getting a management company working for me.

Now I'm excited to have a free and clear property that I can leverage into something with even better cash flow.

Won, Most states have a landlord-tenant law. Get a copy of yours and read it. Be sure what is in your lease agreement agrees with your state law. You may be able to find something customized for Washington by asking around. Realtors might be able to help for free. Rental applications are mostly generic, but leases need to be in line with state law. Congrads on getting started!

Maintenance and liability are bigger problems than you think. My dad bought a rental house with a pool because it looked like a good deal. We found out later that a child had drowned in the pool a couple of years earlier. The tenant did absolutely nothing to take care of the pool. I had to make several visits concerning pool leaks and maintenance. It also took a long time to sell the house too. If the deal still looked good after factoring in the cost of filling in the pool, go for it. 

After all other avenues fail to find an owner .... Here's a tip I tried recently.

Place a For Sale sign in the yard with YOUR phone number on it.

The owner will be calling you in short order! 

This is a great example of creative real estate. LOL

Hi Juliet. Happy Friday.  Renatus has been discussed in depth here. In the blue bar above, Search the site for Renatus. There are tons of comments on many posts. I weighed in because I worked with the group for months and bought into the education. It was a mistake.  You can call or message me for my experience. 

Spend some time here on Bigger Pockets. Read posts and listen to the podcasts. It is the best education and will not cost you anything. Have a great weekend!

Leaving your credit card home is a good idea. If your REIA is like mine, there is usually a speaker who has a product or service to sell. Know going in that they will try to sell you something. At almost every meeting someone will be selling something. Use the meeting for networking!

Bring business cards and a smile. :-}

The 1031 exchange went very smoothly. As long as you follow the rules, and there are many, a 1031 is a great tax-deferral option.  If you need a referral on who I used, message me.