All Forum Posts by: Allen Wu

@Joe Villeneuve

Joe - you’re pretty active here and totally agree with you. See my latest post. Let me know you’re thoughts?

@Amy Raye Rogers

I appreciate your comments and see where you are coming from. My couple of thoughts / feedback:

a) Your strategy in all equity works for the few. Example, if you have a high paying W2 or commissions job that is cash flowing to help off set your property monthly p&l losses, great! Otherwise, bleeding in red is not wise as it can cripple the typical folks who do not have enough accruals or high cash flow job.

b) If no high paying job or other cash flow avenues, I think one should have property accruals in place to subsidize losses until one can raise rent. Otherwise, you’ll be stuck in pickle of properties value go down and you cannot offload the equity gain (i .e. Mini crash)

I’m from CA. I see your valid points. My two rentals in CA experienced 100% in equity. However beginning years were tough on my and grind my W2 salary to offset. I’m still up but cash flow nothing near my other out of CA properties.

In conclusion, I’m always a cash flow play in class A or B areas. So I’ll find markets that at least allows me to break even and has appreciation. Maybe I’m just too risk adverse… as a millennial who saw the 08 crash.

@Klint Ruud

Hi Kline,

After few months of diligence, I’m ready to jump in! Are you still thinking the same that there is opportunity left in Clarksville?

@Suresh Kanna

Congrats! Great story! Do you have a team out in Dallas/Fort Worth?

@Henry Clark

Very helpful. Thanks Henry. I have a pretty demanding W2 job, pays well, but want to quit the rat race soon, so tough to figure out if I want to keep scaling to grind out some more or just pay down debt and live free in 7 years. You’re correct I’m younger…. In 30s and want out by 48

@Patrick Bergeron

I dont think that exists. Probably have to go in as an LP through syndication

@Caleb Kacal

1) Get a college degree in business or practical stem degree

2) Get into a hot and high paying industry like tech, investment banking or consulting

3) Work your tail off in that 9-5 and job hop upwards for more money

4) In the process, keep buying properties, heck, live with your parents for first 5 years if have to

5) Get 10 units by 33.

I would have done this in hindsight…. Instead started at age 31 after accidentally converting my first two properties into investment.

BP Investors,

I need your input. Here is a breakdown of my current portfolio. Where else would you invest? Should I hold and start paying off debt or go for more? Should I buy actual investment properties or go in as a LP through syndication? I’m pretty diversified now, and confused on where to scale up.

Current Portfolio (Actual Properties Owned)

1) Los Angeles: 1 bedroom and 1 bath condo. Breaking even on cash flow. 100% up in equity.

2) Los Angeles: 2 bedroom and 2.5 bath condo. Slightly making cash flow. 100% up in equity.

3) San Antonio: 3 bedroom and 2 bath. 20% up in equity and cash flowing.

4) San Antonio: same as above

5) Cape Coral: duplex. 2 bed and 2 bath each side. Cash flowing and 20% up in equity.

Reit and Other

1) Fundrise: Around 50k invested in equity and debt investment funds

2) Variable Annuity: 25k in vanguard reit index

@Jay Hinrichs

Does Class A neighborhoods count?

@Wesley Vo

Wesley,

I own two condos in Los Angeles. Bought back in 2014 and kept them as rental. In my opinion, it’s not that bad. Sure you pay HoA fees, but as long as you can cash flow, the actual damages are minimized since you only have to care for the interior.

One of my units has been having plumbing issues…. So that’s been a cash flow burn as of late