All Forum Posts by: Brendan F. Nagle

I look at option 1. Its a tough sell to come up with a big down payment and then live in a 1/1. Option 1 gives the owner more privacy. IMO an exit strategy if house hacking doesn't work for them. This also opens up to market to house hackers. Not limiting who can live in just a 1/1. A 3/2 allows for a couple or family to occupy.

@Shawn Underwood 

Some of the mistakes my partner and I have over the years have created unintentional problems for my mom. My parents are listed in the local phone book. So an angry neighbor to a rental called my parents home... Now I had every neighbor my card so if there is a problem I can take the call direct. The biggest one was not having a good system for rent collection. Tenants showed up at my parents house looking for my dad. Because they pay cash for rent, and that had the money that day.

Creating good systems can mitigate future problems. Separation of Business and personal.

@Jeff Byrne

My dad and I have been on the rei journey for about 10 years. 9 doors. But my mom and family have been skeptical/worried about the whole time. Been called a slum lord at thanksgiving and spent last Christmas Eve at an apartment setting up heaters when a unit failed.

My advice: get a business plan together. Including printed out calc reviews. A game plan how you will grow and use your limited funds.

This shows that your serious, it helps overcome objections and it may make those conversations easier.

@Ben Nelson

Be careful. If you end up with him or not, getting the county to update the list of where they live. That conversation/action can take weeks to months. Sheriffs deputy and clerks can be difficult to work with. Whether he is there or not, it still shows on your property until they change it.

I have a few questions to this strategy. If you can confirm that the panels alone brought about the 15k uptick in appraisal then great. How do figure out the expenses long term of the panels? Maintenance, repairs, Insurance, and don't forget the extra costs when you have to put a new roof on the building. 

Assuming you meant Cashflow at 10k. The math looks like this. Per door CF at 150/month. 67 doors needed. At 250 its 40 doors. At 500 its 20 doors and at 1000 its 10 doors. Or a combination to meet your number. Now depending on your goals, ability and amount of time you want to spend this is achieve the goals. But it will require money for down payments, (Not always but IMO 100% leveraged deals won't cashflow enough). It will require time and effort setting up a process to find the right properties, time to purchase and close. Once you have 1-3 properties, scale up as you get more comfortable. Save any CF until you reach your goal. Have reserves for a roof, water heater, trashed unit. Once you are half way there. Figure out if leveraging more and adding units is your jam, or to use CF to pay off one unit at a time is your jam. A paid off rental cash flows better, is recession resistant, and may help you sleep at night. Good luck in your journey.

@ Todd Powell

Another way of looking at it is this. Stop thinking replacement and think of it as a booster or turbo. My number is around 4-5k a month. But if I get 1k off my mortgage because I house hack it helps. If my portfolio adds 200 or 2k to my income, It doesn't replace my 9-5 job, but I feel less bad about taking a day off. I can take a lower paying job, Sales with a good chance of commision or a more rewarding job, less stress. One plan I see repeated is to get a part time job with benefits combined with a passive income stream. It solves 2 of the more stated problems: Health Insurance? what if I get bored? The goal should be time freedom and relief from worrying about money.

I believe I would have a property close to that in North Iowa. PM if you want details.

Things are too far skewed to make good analysis. Income seems high, Taxes are too low and some expenses are omited. Rework your numbers find the missing pieces and then ask for help. It looks like a great deal right now but it will look not as nice as the real expenses are figured out.

@Orlando Goodon

I wouldn’t invest so close to nj. Think rural. Using the math of 5k a month. You could buy the sfr every 10 months. The math works the same 6 sfr with 1.5m value after 5 years. Maybe more/less cash flow