All Forum Posts by: Anthony Torres

Appreciate the input, Dave. I have some cash that I can use to purchase another property. Only about $50k. Another $80k (from selling this one) could get me a lot further. Any particular reason you recommend hanging onto it? 

Thanks, Ed! If we sell, we will definitely attempt a 1031. If you were in this situation, would you sell or hang on to it? 

I live in the Boston area and the property values are outrageous enough to encourage me to invest elsewhere. I have been comparing a few cities and am liking the way Columbus OH looks. Does anyone have any investment experience in this area that they are willing to share? 

Thanks! 

I have a property that I am thinking about selling. It's a great no-hassle single-family property. We purchased it for $10k down, a few years ago (owner occupied) at a great price as a foreclosure - no significant renovations - and it cash flows over $450 per month. I recently applied to drop PMI and found that it was valued at $265k and we owe about $165k - so $100k in equity. Not bad for a first deal :-)

The plan would be to take that money and reinvest for more cashflow. 

I heard that when you buy a property, you look at ROI but when you hold a property, you look at ROE. The ROI was great but a Return on $100k equity is not great.

I have heard that it's difficult to get home equity loans on investment properties but have found a few options. I could take out up to $44k for 5-6%, or $35k for 8-9%.  These seem a little pricey and I can't access much of the $100k. 

If I sell, I imagine I'll be able to get around $80k-$90k after fees and closing costs. I'll lose the $450 in monthly cashflow - but I can take $80k and buy a $400k property with it. If I can expect a 12% ROI on the $80k, the cashflow would be $800 a month. (Is this reasonable?)

I heard on a recent BP podcast that the economy is showing signs that it could make a down turn within a couple years and that investors should be hoarding money to buy up as much as possible when property values are low. 

What would you do?

Based on what I have heard (and agree with) on BP, if you can make the numbers work for you utilizing a property manager, then go for it! 

You don't have to follow the exact footsteps of your mentor but it's invaluable to have access to their advice. You are a different person and therefore have different needs/goals for your real estate portfolio. When working with a mentor, you should know what those essential differences are so you can better utilize their advice for your specific needs. Real estate investment is a tool so if you decide that a property manager is the way to go to make that tool useful for you, then you need to pursue that path, assuming the numbers work. 

With that said, self-managing is a great way to learn and gain experience. Can you do that remotely? Absolutely! We do. The trick is to make sure you invest the time into finding the RIGHT renters. The right renters can essentially self-manage.  You can even get a real estate agent to find the renters for you, do the showings, and then pay them directly without having the renters contracted to the property management company. The key is having the right phone numbers on your speed dial (real estate agent, lawyer, handyman).

I personally don't want to (or plan) to use a property manager for a multitude of reasons. Firstly, they are expensive and I don't see their worth. If you fire the property management company, they take the renters with them. You only pay for the managing. If they don't get any calls in 6 months, you still have to pay them. Plus you have to pay for all maintenance and repair on top of that. 

I would also encourage that you don't own multiple investment properties across the states because there are so many laws out there that change the way you invest and landlord. Also, doing your taxes also can get complicated dealing with income from multiple states. It's easier to become an expert in one market. This is what we are learning right now....

Good luck! 

Julie (Anthony's wife...we share a BP account)

On our first home purchase, we were quite spoiled. The real estate agent we serendipitously found was an avid investor who owned 20-30 properties. She took us under her wing and taught us in the ins and outs of leveraging real estate as a powerful investment tool. Our first buy was a single family home that was a good first deal. We no longer live in that area and she is now retired.

We didn't know about the Bigger Pockets community at that time of our second buy. Our loss! So when we purchased our next home (that we currently live in), we used someone that didn't have personal investment experience. We didn't make as good as an investment decision the second time around, in my opinion. She was good, and I'd definitely recommend her to someone looking to buy a home to live in for 10+ years, but she didn't have the mindset we are looking for.

With all that said...We are ready to purchase a third property!

We live outside of the Boston area (Middlesex County). It would be easier to purchase locally because we plan to self manage. We are willing to owner-occupy for a great deal but would prefer not to (baby on the way). We are not opposed to purchasing in other markets for the right deal. We are casually looking in NC, VA, FL, and NY (capital region). We are not limited to these areas and are interested in multifamily properties. We don't have a buyers contract with anyone right now.

Please reach out to me if you have any referrals for a real estate agent that has personal real estate investment experience - or if you match that description. I am specifically looking for a buyers real estate agent with multiple investments and several years in the game.

I hear great things about the BP community. I'm counting on you! :-)

Thanks in advance for your help and suggestions.