All Forum Posts by: Bre Reichle

Hello BiggerPockets community! I'm Bre from the Kansas City area, passionate about real estate investing for 2 years. I'm particularly passionate about expanding my portfolio. 

Outside of real estate, I enjoy extreme sports and traveling.

Excited to learn and connect with you all!

I have offered 48% on one and 70% on the other two. I now have all three. This has all been since October 2022. Remember, there are many different scenarios of how we got these offers. Just be mindful of that as you read everyone's numbers :)

Hey Guys. I am purchasing a property in Springfield, Missouri. I am needing to build a team in the local area. Can anyone recommend a contractor out there to start with? 

Hey Evan.

Each definitely has their own covenants/Rules and dues. For example, I just purchased a townhouse with HOA dues and covenants. At this property the dues include water, waste, outside maintenance (lawn, roof, paint, stucco, deck, gutters, snow removal etc). This HOA has not amended their covenants since 1990 and nothing is mentioned regarding lease terms. But they did include all things related to what the HOA dues would be going towards. 

Just a suggestion: Be sure to read through the original and any amended HOA documents you can find if your thinking about renting your new property as a short or Mid term rental. There usually available on the HOA website. And even then, it's not guaranteed you will be doing it forever.

I have a property in a different HOA neighborhood and the battle was real in regards to the STR strategy I was using. I started offering it as a MTR to try and compromise and appease the board. NOPE, wasn't good enough and the HOA continued to fight me on it. They ended up amending the covenants and pushing out all of the short and mid term rentals. I had to switch it to a LTR. The numbers still work. Just not as well as before.

Working your numbers to ensure a positive cash flow if you ever have to turn it into a LTR, will help ease the unsteady concern of things going sideways. 

Just some thoughts. Hope this helps :) 

When considering debt pay down, I look at the daily compounding and pay the highest interest rate debt down first. 

I have not taken into account the TVM as of date. However, this has changed my mindset on negotiating a deal. I have heard of this and know the basics behind it, but for some reason it didn't enter my mind until it was brought about in this book to utilize it more. 

I am excited for the increase of knowledge and understanding the numbers. They have made it easy to understand and comprehend. I will definitely be turning this book into a resource book after I am done reading it. 

 Definitely, a congrats! I am excited to hear of the things you are going to incorporate out of this book as you complete your first project. So far, just understanding the numbers and what they will affect in different scenarios is amazing. Keep us up to date as we continue with each week. Glad to see you joined the club :) 

 Carl,

I can't wait to hear how your first investment goes as we read this book. Utilizing the reading and applying it to your newly found business will only enhance the opportunity for you to be successful. So many recommendation to help you get through and understand the financials behind it. I'll be doing the same, for I recently purchased my first property as well :) 

Thanks Alicia or taking this on. What a great gift you are giving us by running this book club. I have never been a part of a book club before. I feel it will hold me a bit more accountable to my reading goals :) 

I opened my first business just before I closed on a property at the end of last month. So, I am an infant in all of this as of date.

I do separate by personal and business expenses in separate accounting software and bank accounts.

I just created my personal P&L. It is close to what I had expected. A little on the lower end :( I do have a business P&L, mainly because I use Quickbooks Online. So, I just download a report. It's pretty much as expected since I am in the rehab part of the process. 

I use Quickbooks Online to track my business. I use google sheets to track my personal. 

I do like to see all three metrics in  my P&L. However, I like to see the overall aspect of the company first. So, the net profit margin would be the key one I like. This number would que me to look deeper if it changed one way or the other. 

I have only evaluated one property so far (for real) but I have practiced evaluating several prior to the actual one I purchased. I looked for both cash-flow and appreciation. In a few years, I may answer this differently when I have several to review from :) But for now, it's the cash-flow and appreciation. 

I am enjoying this book so far. The education is priceless. It's one thing to have a formula, but it's a whole nother ball game to be able to understand what each number means and how it will affect the outcome of different scenarios. 

Hey, thank you so much!

 Ahhhhhh! yes! Thank you for that idea :)