All Forum Posts by: Eugene Lee

Hi Friends,

Unsure if I should make a separate thread for this but I was wondering if any fellow investors with USREEB were having issues with property accounting on the USREEBPM side - things like statements not reconciling and portfolio minimums being charged multiple times. It's a little unnerving. I'm hoping to get a discussion going to see if it's just me or if its a few of us. Hopefully it's just me :) 

if you want to stay in Memphis, I've had a good experience with Alex Craig and his team with Memphisturnkey. 

Otherwise, I really like USREEB in Kansas City due to macro factors

my experience with USREEB has been good thus far. Can't speak to the PM but @Account Closed does a great job on the transaction side. 

some turnkeys do have some negotiating room and others don't. You may also be able to get a larger discount by buying multiple properties at the same time. Doesn't hurt to ask! 

yes, buy multifamily 

.... The point was to start a conversation around debt pay down strategies and the relationship around interest rates and asset prices... 

Hi All,

Kind of a thought experiment which may turn into reality for me; I'd really appreciate your thoughts on this, BP community. 
Let's say that you have a portfolio of ten single families with debts ranging from 5% down to 4%. For the sake of the experiment, let's also say that the loan amounts ranging from 50k to 100k on the 5% properties are higher than the loan amount on the 4% properties. 
My question is - Just because mortgages don't really work like the average loan, all things being equal (equity positions on homes), would you choose to pay off the larger 5% loans first or the smaller 4% loans and roll those into paying off the 5% loans? 

I'm leaning towards paying off the smaller loans first just because it would allow you to snowball those debts quicker. What say you BP? 

An inspection saved me a new roof. It's imparetive

Hi All, 

It seems that the KC market has been on fire the past few years. Where do you think we are in the cycle? As a San Diego investor with an interest in out of state investing (and two properties in contract in KC), I'm wondering where to best deploy my capital from a macroeconomic perspective. In San Diego anyway, I'm seeing an increase on for closure activity and a prodigious increase in prices that seems to be leveling off. Thoughts? 

Update:

Because a lot of people have asked; I am working with MemphisTurnkey.

I am now firmly on the property management side of the game. I got my first mortgage payments ever so that was fun. And the deeds. Yay. 

One property was leased prior to closing which was fantastic at the high point of the rent range. The other property after 5-6 weeks of marketing has yet to be leased. The property management has lowered the rent price to the low end of the rent range. I am a little frustrated because of the time it has taken for this property to be rented.
Perhaps the lesson to be learned here is that an investment property with a weird floor plan will have a tougher time renting than a property with a more standard floor plan. I am hopeful the property will rent soon. 

Takeaways from these investments:
1) The inspector is my best friend as an out of state investor 
2) Floor plans matter. Its not just about the purchase point and the price to rent
3) Taxes. They make a significant difference in your cash flow. I originally thought my property in Cordova would do better than my property in Bartlett because of the lower price to rent. After crunching the numbers after seeing the tax bill (and the rental situation....) it seems the property in Bartlett will do much better. 
4) Negotiate the price. Seriously, it doesn't hurt to ask.