All Forum Posts by: Andrew Caldieraro

Using cash was significantly fewer headaches. For me, it was fairly frustrating getting all of the paperwork to the bank that they needed. Then I could not get a loan until I had equifax fix my incorrect date of birth that they had on file - I have no idea how this happens in the first place. Then, I always question whether a bank is adding on additional fees, etc. On a flip note, being highly leveraged can ramp up your business quicker, or it can make you go bankrupt quicker.

If the rent per unit is about the same and the condition of the buildings are the same, I’d go with the duplex.

I'm a 35-year old dentist in a similar-ish situation. The plan that I followed since graduation: Paid off student loans, max out a Roth IRA and 401k over the last 3 years (I'm still eligible to max out a Roth IRA as my income is very low compared to the average dentist - I work in an old private practice that my brother owns). Over the last few years I've had a little additional cash left over that I used to purchase low cost index funds, following a similar approach that you read about on the white cost investor or on the bogleheads forum. I have also purchased a turnkey duplex and this month I'm closing on a SFH, all will be rentals. What have I learned in the process? It is much less work and fewer headaches without rentals. Index fund investing is much easier. If I want to make additional money, it's far easier to put in more effort as being a dentist than dealing with tenants and rental property. With that said, I'm not saying I want to practice for an additional 30 years either, which is why I'm investing in real estate and in the stock market. RE investing is very time consuming looking up properties online, going to view them and their neighborhoods, having the inspections (often times many different inspections) done, finding a good realtor that is familiar with investment property, finding a bank to work with, getting all the needed paperwork to the bank, finding insurance agents, finding a good property manager, etc. On top of this, you need to be able to determine if a property is a good deal, and you then need to pull the trigger immediately or someone else will grab it. If it were me, I'd start small (SFH, duplex, 3-plex, or 4-plex). That allows you to learn the basics. If it's too much work, you dislike it, or something doesn't go right then you are not in too deep, financially. If it goes well, it's easier to scale up. Best of luck!

I’m surprised people will live in the same house with others that they don’t know.

When I say the floor is not level, it’s off enough where I know laminate flooring isn’t a possibility without some work to the subfloor. I’m thinking a contractor should take a look as $25k to fix this would make this property not make much sense.

Hello,

I’m looking at a 1350 sqft 3B, 2B house that is over 100 years old for a rental property. It will rent for ~$1000/month. It doesn’t need much work, aside from flooring replaced. It currently has linoleum flooring in the kitchen and bathrooms,and carpet everywhere else. The flooring is quite uneven. Some areas slope a bit, other areas under the carpet you can feel significant variations in the subfloor (it feels like some variations are close to 1/3 of an inch). While it’d be impossible for anyone to give an estimate to fix this without seeing it, what options do I generally have?

After you get some calls from your mailings, what are your next steps?  Meaning, how do you get the conversation started?  When do you ask what the owner is looking to get for the property?  Finally, is your offer a certain percentage of market value?  

I know some investors will want to go look at every property prior to giving an offer. Others do not.  Overall, I'm curious what steps are taken once you get a potential seller on the phone.  

Hello,

Does anyone have suggestions on which online course (48 hr pre-exam and 24-hr practice) to take to get an agents license in MO?  I do want to do the course online. Is one course better than another, or are they all about the same?  There are quite a few accredited ones. 

I know nothing about being an agent. So, I’m not familiar with what is a low fee brokerage or a transaction coordinator. Since I know little about the process, it may not hurt if I split the profit with a firm that handles some of the legal tasks.

Regardless, it sounds like this may be a decent idea for me. With that said, I like to drive the neighborhoods that I’m looking to buy in. So, if I see 50 properties that look like possibilities based on the price and appearance and condition of the pictures posted, after I drive the neighborhoods, I often times see that only a couple are better suited for my needs. I don’t want to be a hassle for my current realtor, even though he’s treated me great.

Access to the mls would be nice. However, being able to get inside a property myself would be nice too, and also submitting offers.