All Forum Posts by: Alex D.

I am thinking about a fairly last second trip across country to attend the Intelligent Investors Real Estate Conference 2020 in L.A. - https://www.intelligentinvesto...

Since it's going to cost an arm and a leg when you include travel and hotels, I wanted to find out if anyone has been to it previously and, if so, was it worth it? Did you get enough value to justify the expense?

Thanks @Aaron K. and @Matt Devincenzo Consistency would be required. I'd need the monthly amount, possibly for a number of years.

@Aaron K. I described it incorrectly. Sorry. I need 4.3% per year, but divided monthly, with monthly payments. Hope that makes more sense.

I have a decent sized amount to invest. For what I'm trying to achieve I need to make 4.3% per month, as safely as possible, with monthly distributions of the 4.3%. I already own rental properties separate to this but I want to know if there are better ways to, as much as possible, guarantee the 4.3% with almost no risk. I know that nothing comes risk-free, there are no guarantees, etc, etc. But I'm thinking that to make this relatively small amount of interest there may be ways I haven't thought of or never knew about.

@John Corey

John, I certainly don't want to end up going backwards, but it's not really a case of chasing a bigger pot of gold. I just feel that when I bought my properties I didn't know anything about what I've now learned on BP. I didn't realize how awful South Florida is for cashflow. But realizing now that 1% is what I could potentially be making elsewhere and that I have one property that cost $625k making me $3225 a month and another that cost $745k bringing in $4000, I feel like I'm doing myself a disservice if I don't at least do something about those two properties. And maybe also the one that cost $618k and brings in $4700. If they were all at 1% I could be bringing in almost $8000 more per month. Am I not right that these are improvements that I should try to make with my portfolio? Whether that be with other SFR, or moving into syndication, or lending, or whatever it may be. But I should make sure that all my capital is making me as much as I can.

@Alina Trigub

Thanks for those articles...I'll read them now.

I'm curious what people think I should do with the HELOC...pay it off now or keep it? I owe $350k which I'm paying interest only each month. The collateral is no longer my house but a brokerage fund with the bank that has plenty of reserves to cover it. And my interest rate is fixed at a quarter point below whatever Prime is at the time.

@Rob Drum @Dave Foster

Thanks for your helpful posts. A great point...I had only been considering the price I paid. The commercial building (property 6) could go for 1.4 or 1.5m today which puts the great cashflow it brings in a different light.

@Mary M.

Thanks. I’ll definitely also start giving thought to talking to a commercial brokerage.

Thanks for your replies. Do you agree with the properties I’m thinking should be replaced to improve the cashflow? All I’m interested in is cashflow by the way. I’d rather the houses don’t depreciate permanently, and appreciation is nice, but I don’t need it. I do need passive cashflow.

Hi BP community. I’m hoping I can describe for you my situation and see if you agree with what I’m considering doing. Any feedback and advice is welcome.

I have been buying rental properties for about 15 years here in South Florida. I bought everything all cash and own it all outright. The only debt I have is a HELOC for $350,000 (which is actually no longer using my home as collateral but a brokerage account at the bank that issued the HELOC), on which I pay the interest only each month at a quarter below the prime rate. We live purely off the cashflow from the properties and only since joining BP have I realized that I could probably be making a lot more money each month. I'm considering selling several of the properties below and I think I'm going to go the turnkey rental route in the Midwest, or Memphis, or Birmingham, or any of the places often touted on here as great for cashflow. My only concern is attaining the greatest cashflow possible passively, whether that be Memphis, Alaska or Pitcairn Island. I'm also open to lending, crowdfunding...wherever the best passive cashflow is.

Following are the properties I own, what I paid for them, and what I receive in rent. I pay 10% in excellent property management for all of them. I would love to know which ones you would sell. By the way, I am also toying with getting into leverage for the first time. Maybe just with $100,000 of the money spread over three or four properties to start with and see how my risk aversion takes to it. Although I have no income to show the lenders other than the substantial rental income and a large sum growing in an index fund, so possibly multiple mortgages would be difficult to acquire. Also curious if anyone thinks I should pay off the $350k HELOC.

Property 1 – house and cottage:  Paid - $618,000. Rent coming in - $4700

Property 2 - SFR: Paid - $625,000. Rent coming in - $3225

Property 3 - SFR: Paid - $745,000. Rent coming in - $4000

Property 4 - SFR: Paid - $729,000. Rent coming in - $6300

Property 5 – Fourplex:  Paid - $675,000. Rent coming in - $5300

Property 6 – Commercial:  Paid - $1,000,000. Rent coming in - $12,400

I’m inclined not to mess with properties 4 and 5, and certainly not property 6. But if you think 4 and 5 should be improved on, let me know. But properties 1-3 I think really need replacing. My reading on BP tells me that the 1% rule is quite attainable out of state, so the rents I’m getting seem unacceptable. I can’t lose all that cashflow at once so I would probably have to do it one at a time, though having said that, if I decide to switch them for turnkeys out of state I wouldn’t want to drag it out for 2 years. I’d kind of like to get it done quickly. Also, perhaps it’s better to approach turnkey companies with a large wad of cash and the ability and desire to buy multiple properties at once? One other bit of information...in the next month or two I will receive an approximately $500k inheritance to add to the available funds for turnkeys or other cashflow sources once I sell properties. My head is totally up in the air with all the possible options. Would love some BP clarity to help suggest a path or paths for me that would lead to the best passive monthly cashflow. Thanking you all in advance.