All Forum Posts by: Anthony King

@Matt Slease My other one is between 43rd and 45th St's. Ha. ;)

@Will Gissendanner I would without question use financing. Look at it this way...based on your numbers you're getting a 5% return on your $210k investment (and your taxes may be wrong making CoC less than 5%). Could you invest $210k in the market and get at least a 5% return and not have to be a landlord making it 100% passive? You absolutely can. If you only put down 25% and finance the rest you'd still have ~$150k to invest elsewhere. You could buy 3 more properties at the same price, or put it in an index fund, mutual fund, etc. I will ALWAYS use other people's money. You should also account for about 40-50% of rent to go toward expenses and get pre-approved for financing and use those real numbers wherever possible. With all that said, this does not look to me like a good deal. I would look for a small multifamily (2-4 units) in the same price range, plan on putting 25% down and using traditional financing. But that's just me. If you can find a minimum 8-10% CoCROI using 25% down and a 50% expense ratio then that's a deal worth pursuing. SF turnkey homes aren't typically a cashflow play. Maybe you're betting on appreciation? That's gambling to me. More doors = less vacancy risk, more cash flow, one roof, etc. and easier to beat the 1% rule.

Two duplexes are well north of 12th St (border of good/not so good), one of them in Perry schools. Two triplexes in Louisville.

@Justin Alarcon I've had recent success in Canton, Oh purchasing 2 duplexes and 2 triplexes there this year. Low cost of entry and cash flow well. Not appreciation plays. I buy elsewhere for that.

@Samuel Iddings if you are buying a vacation rental property you can purchase it in your name with 10% down as a second home mortgage. You must tell the lender you intend to use it as a vacation home at least once a year and the rest of the time they could care less what you do with it. Of course you have to meet DTI requirements for a second home which some banks could be more stringent than with a primary home mortgage.

Forget about buying your property with an LLC. If anything, purchase the home in your personal names and then do a quit claim deed into the LLC's name. Just know that the bank COULD call the due on sale clause and demand full repayment immediately. It is extremely rare for them to do that as long as you continue paying your mortgage on time. I am not a lawyer or CPA so whatever you do, do it at your own risk. I just know from personal experience and that 1,000's of investors do it every day.

@Mary M. I can't imagine you make any money in this business. If you do, I'm betting you don't follow your own advice you seem to leave all over these forums. We don't OWE our tenants anything other than a clean and safe home. Your comments make it sound like we must tend to their every need and every one of life's inconveniences is the rich property owner's fault. Adding up all the services I've seen you recommend to fellow investors, I'm tempted to quit working and go live in one of your places where everything is provided for free. It kinda feels like you're trolling the rest of us on behalf of fellow renters. Not trying to be a complete jerk, but this is bad advice. Telling someone to spend all their maint/capex/or cash flow on an unnecessary weekly service...then even worse, to dip into their own pockets for a $10,000 fence to stop leaves from blowing, is just about the most ridiculous thing I've seen you post.

@Ryan O'Hara lots of good advice here, but I would also recommend you listen to the BP podcast episode with Dion McNeely if it wasn't already mentioned above.

@Donald Longo the truth you don't want to hear...ditch the luxury cars and buy a couple beaters, then ask this question again. $2,000/month on cars is insane and if you're seriously looking to invest in RE to presumably MAKE MONEY, and invest in your future, you need to straighten out your mindset first.

@Nader Hachem if you're running numbers for a home in a neighborhood you wouldn't walk through after dark you might see great returns on paper. Reality is usually much different. If it's in an A or B class neighborhood double check your numbers since these cash cows generally aren't sitting on the market waiting for someone to take that 15% CoC you're calculating. Your total expenses should be closer to 45-50%. I recommend using real numbers on everything, except maybe maintenance, versus percentages.

@Kamron Lewis pay a plumber to submeter so each side gets their own bill. I never pay utilities if I can legally avoid it. When tenants have "free" utilities they somehow think it's a good idea to crank the heat to 85 with 3 windows open in January and fill all their neighbor's swimming pools with the garden house. At least that's what I imagine them doing when I open the bill.