All Forum Posts by: Brian Paine

Those are all helpful answers. I need to get wrap my mind around some of them but I think I'm heading in the right track. Thanks guys!

I don't quite understand this so called "law of diminishing returns". It shows up in the BP calculator each time I analyze a property. The ROI percentage starts to go down at about the 10 year mark. Plus I keep hearing that investors tend to sell after 5 to 7 years because of this.

I would think that the pay down on principal and increase in appreciation would create a compounding return.

What am I not seeing?

Thanks guys... That's what I thought, but I second guessed myself, because my instincts told me to add up all of my expenses and then say, "okay, I need to charge at least this much rent to cover my expenses." .... However, I get why it's done the other way, because the rent should be set to whatever the market will pay and thus we do need to work backwards to see if the deal makes sense.

"They say" to factor about 5% for maintenance and another 5% for Capital Expenditures, but 5% of what?

Should it be 5% of the rent or 5% of PTI... or something else?

Thanks in advance!

Wow that ROBS deal is super Ninja! Unfortunately, my 401K is through my full time employer and I'm not looking to leave anytime soon.  Also, yeah, I'm still here in Alameda. Covid as changed things quite a bit around town :(

I'm a wannabe investor and have been thinking about my why's lately. I was thinking I need a why for each property, but my first "why" is simple. It's all about retirement. I hope to either have property that's free and clear that I can cash in on, or free and clear so that the cash flow helps support my retirement :)

I'm still learning myself, but from what I can see you are not gaining any equity, through the ARV, however, cash flowing $302 each month on a $3,000 down payment seems pretty darn good.

I recently asked a similar question directly to a loan broker on the phone, when I was getting pre-qualified. They suggested something about doing the conventional 30 year fixed rate for the home purchase, but an open line of credit rolled into the deal with the same lender... Maybe someone else on here could elaborate.  

Chris, good stuff. Thanks for your contribution. I hope this really catches on!

You should bookmark that spreadsheet to follow up on it's progress ;)

Brian

Hello everyone, I'm looking for a super simple brain dump of ideas. So, feel free to share in the comments below, or edit this spreadsheet. Anyone can edit this, so feel free to add anything you like to each list or add a whole new list in a new column...  Please, just don't delete anyone else's work or thoughts. I look forward to seeing how this open source shared spreadsheet might develop.

Here's a snap shot of the spreadsheet: