All Forum Posts by: Allison Karrels

Good luck Daria!  I love my little rentals in Gainesville FL but the deals seem to be going quickly this year, good that you expanded your search to other areas.

How do you structure the monthly cash flow between partners? For example, I currently have several SFH but my brother in law has expressed interest in getting a rental together. I assume we would have to form a formal partnership, put income into the partnership and then dispense cash out to each other each month or let it sit in the partnership and grow for the next purchase. Is that close?

Congrats Mindy and good luck with your new job!  Bigger Pockets is such a great platform.

Welcome to BP, good luck with your investments!   

I agree, quick communication is what I expect from my property managers and it is very annoying when I don't get an answer that same day or the next at the latest.

I own several homes in Gainesville, FL that I rent out.  That is a good market to find reasonably priced homes with huge rental demand.

Good luck and Go Gators!

Bought #1 in 2004 as a home that became a rental - traditional mortgage

#2 in 2012 - traditional mortgage

#3 in 2014 - traditional mortgage

#4 in 2015 - traditional mortgage

Looking to buy #5 in 2-3 months - this will be a combo of 401k loan for the down payment and traditional mortgage

Our purchases have sped up as I learned more, got more comfortable and got more income coming in to support it all.

Thank you to everyone for their suggestions.  I am currently only looking for $20-$30k to fund the downpayment for a traditional mortgage.  Since it is small I followed the suggestion from  @Paul Ewing 

I wrote up a business plan with what I have done so far (4 SFH) and my plan to purchase another property this year. I then gave it to my father to see if he had any cash or bond funds that were not great performers and offered to pay him 5% over 4 years for a $20k loan. That amount and terms will allow me to get another property (a duplex) and still cash flow a small amount.

As I continue to grow and learn I will try seeking out more options but for my first private money loan I think a small amount from family will be a good experience.

@Chuck B.  

I just bought a house from Memphis Invest.  Purchase price $92,900.  2 year lease - year 1 $895/month and year 2 - $910/month

Accounting for these expenses - mortgage, insurance, property tax, 5% vacancy, 10% repairs, 10% property management  - I cash flow right at $100/month

The numbers are not amazing - but I did no work, which was my goal.  They bought the house, rehabbed it (so hopefully I won't really need that 10% for repairs for several years) and found tenants.   I am sure if I bought it, rehabbed it and found tenants I would have done much better but I don't want to do that work right now, I am too busy with my family and job.

#AskBP - how do you know when you should sell a long term buy and hold rental property?  Is it like a car where the maintenance is not worth the investment at some point so you sell and buy a new rental or just keep fixing it if it is a performing rental?