All Forum Posts by: Billy Davidson

@Philip Anderson

Hi Philip! I would love to assist you with any real estate needs you have. I am on the top team at the beach in Oxnard and personally have turned my SFR into a duplex. I also have rentals in AZ.

Lastly, I was previously a CPA for a big 4 accounting firm where I only specialized in real estate tax. With this being said I love working with numbers and would love to find you the right property.

Please reach out with any questions. Always a call away.

@Elena Rosas would love to be a resource in anyway!

Hey Dylan. Would love to connect and might have a good contractor for you. 

Hi All,

Just asking around to see if anyone has an idea on how much it costs to make a storage facility from the ground up. I have the land free and clear and it's on a major street. It's also near a recently built housing tract and I believe they are in the works of expanding. I wanted to get an idea of how much it would cost to create this facility and if it even makes sense. Any ideas or any people you recommend to talk to would be greatly appreciated.

@Ashley LaVigne tough question. I would first go on rentometer.com and see what you could possibly rent it for. I would see what the cash flow is and compare it to the price of the house. Its hard to say sell, because dang the goal is to grow the portfolio and a lot of ppl on bigger pockets always say they regret selling properties. However, if you are hardly getting any cash flow and obviously no appreciation then I would say sell and get out. 

Do the 1% -2% test. Use the calculations that they give us on BP to make the right decision. 

Truly, an 85,000 house and you already have 20k in it... paying that off and totally having straight cash flow can be nice. You have a great value add when applying for a loan and you now have the cash flow to pay for other projects. That is if you pay off the loan completely. Lenders love to see the ability to pay loans and to see no debt. Huge win.

I am obviously leaning toward keeping the property. Best of luck.

@Gary Libero this is awesome!! Congrats. I think you have two routes to go about this. 

1) This method... you have cash on the side ready to go. Personally, I would try and update the house to get the highest rents that you could possibly get. To add to that, it creates a lot of force appreciation and adds equity into the building that you can pull out with a refi. I think with this you can put money down on another property and keep it going. 

2) You don't have money on the side ready to go. I would rent it out and house hack it, and while doing that I would refi and pull some money out to put into the property. Use the money to update and get highest rents, and then from there just cash flow and save and put into the next property.

Snowball this and grow the portfolio and only good things are bound to come your way. Congrats and look forward to hearing what you decide to do.

@Ana Rodriguez This is a really hard question. In my opinion I would keep the old house and rent it out while living in the new one. The old one according to my conservative calculation would provide you $14,000 of income.

• $2400 income a month
• $600 mortgage payment a month (including taxes and insurance in escrow account)
• $240 (10% of income) for management fees
• $200 HOA
• $100 Repairs
• $100 CAPX
• Total 1160 a month = roughly 14k a year.

With All this money why don't you use this and your W-2 to repair and live in the newly bought house and update it along the way. Ya, it might not be glamourous... but who cares. You have a 5 year plan and adding to your portfolio isn't too shabby. Goodluck and keep me posted on what you do.

@Connor E. Giavasis Im sorry man. But good job at looking into it more and continue to look man. Please feel free to reach out and I hope my numbers made sense to you. What state are you looking in?? Are you looking to live nearby or house hack?? Or are you looking to invest out of state?

Reach out.

@Connor E. Giavasis if a property has been sitting 6 months in a market like this then something is wrong. I would say 120k-125k would be a great price to ask and see what happens. The way I did the math was:

• $350x4units = 1400x12months = 16800
• 300 (safe side of utilities) x 12 months = 3600
• 12 months tax and insurance = 2,300 estimate
• 16800 - 3600 - 2300 = 10,900 / 7 - 9% = 121k - 155k

Given its been sitting I would start at 120. You never know what issues will come and you never know what rehabs you want to make.

Best of luck. Keep me posted what you decide to do.

@Ramki D. Great question. I've always heard that 5% plus inflation is reasonable to do. With all this being said, I've done research and come to another conclusion which is:

• If you increase rent 10% or less you can give tenants 30 days notice if they don't agree to the new rent.
• If you increase rent more than 10% and your tenant does not agree you have to provide them with a 60 day notice.

I would stick to the 5% plus inflation to be a reasonable landlord, but I guess it comes down to what you are comfy with. Best of luck with it all and keep me posted on what you decide to do.