All Forum Posts by: Caleb Anderson

Hey BP Community!

My partner paid all cash for the buy-and-hold we are working. Without getting too far into details, he's providing capitol and I'm managing the deal and tenants. I have been estimating putting 5% towards vacancy funds, but that was before he decided to do all cash. We worked our arrangement out to where he gets the equivalent of a 20-year loan payment every month after base cash flow. Is there any reason now to put cash towards vacancy expenses that I'm overlooking? I was thinking yes, because it would make sense for him to still receive his "20-year loan" payment even if there is no tenant. 

Thanks, Caleb.

Thank you @Terrell Garren and @Jim K.!

Every mistake is just a form of investment in my growth, character, or lifestyle.

@Stephen Jeffers Thanks! I hope you mean you're trying not to be paralyzed. Haha

Yeah, I suffer from the "analysis-paralysis" problem too. I just studied as much as possible and got enough basic information, then treated it like a bandage and just ripped it off. I knew any problems from taking on an average risk on a basic investment could be remedied through the awesome resource of Bigger Pockets and the few connections I had made up to this point. The 4-Hour Work Week is a great resource for this and a great read- here's why. Not only does it discuss the obvious- trying to get work-less lifestyle and be automated- but it also helped me change my mindset on risks and how you should use them. I think it'd be great for you.

I have a spreadsheet on my 1st place that I put together that I can PM to you, if you'd like. 

Thanks, Caleb.

@Sean 

@Sean O'Connor Thank you for your service Sean and welcome to the community. BP has been a huge help for me since I started in May and I've got 1 property under my belt so far. I'm in Henry Co with @Ethan Henning, and you're right, it is a pretty good place to invest. I'd say it's like most other places- you just have to know the area. If you head over here shoot me a PM and we can chat! Good luck!

Hey BP community!

Had the pleasure of cleaning out junk from the property of my first deal and working on the landscape. Figured I'd take it as an opportunity to thank every one of you that have helped me get this far. Anyone who is trying to start out and make their first deal- don't get held by analysis paralysis. I've already made some mistakes and I haven't even gotten to the point of finding a tenant. Life rewards those who take risks- educated risks! Cheers!

@Ethan Henning  

@Ngan Nguyen I would certainly take the advice given so far on continuing to wait. On the same note don’t wait too long and as soon as you pass the threshold of 2 weeks, or whatever you decide, I would reduce and make sure you have the highest number that will for sure get a tenant. Sitting on the rental market too long can have the same effect as a house sitting in the MLS too long- people could assume something’s wrong with it because it has been on the market for so long. Good luck to you!

I had an emergency at work and was needed today. I wish I could be there today!

David, hope I can be of some help. I imagine you've spent plenty of time studying on how to analyze buy and hold properties. I lived in WR for a lot of my life, and I've spent time working in Macon. Are those places that are interesting to you just because of proximity to where you live, or?... WR and Macon doesn't seem to be doing a lot of growth right now to my knowledge, but if you are looking for some cheaper properties that you can fix up and try to BRRRR that may be a great option. (Maybe closer to Centerville?)

Thanks Dave! I do believe that's on the high end, and my agent has experience with other rental investors and she says that not an unreasonable rent rate- as long as I get the house looking good! But the 1390 is a good idea, thanks.

@Caleb Heimsoth Ok, cool. Thanks.

I have it accounted for, but I am managing it myself and it would still cash flow over $100 a/mo if I decided to get a MGMT company.