All Forum Posts by: Chad Kastel

@Britney Boyde  As long as you don't have a signed contract,    It is definitely acceptable to raise the price based on market shifts or demand.   Of course some potential tenants won't like that, but you can just explain that you have been offered more for the property.  

I'm not sure about where or not to let rejected applicants know.  Each state likely has their own laws.  Either consult an attorney or try to find a facebook group with landlords from your state to ask them.

You can "always" find better deals, the question is what is the likelihood to find then and at what opportunity cost.  If your co-worker is doing so well, ask him/her to take you with them to whatever meetings they go to.  Or put you in touch with the people that are sending him/her off market deals.  

@Mark Millich.   The Book on Rental property investing should give you tangible information for how to determine if a property is a "good deal" or "bad deal."  The thing you have to determine first is what asset class you are looking to get in to.  And then your goals with the asset class i.e. appreciation, cash flow, flip.    Each strategy has different numbers and formulas to determine their value.

In terms of your co-worker, are you looking in the same markets as him?

@Mitchell Morwood     Can you post more about the numbers so I can help make more of an analysis?

In the dark,     I think some of the question will go to opportunity cost.  Would you rather own a home that follows the 2% rule and cashflows well.  Or own a home where you get to make $100,000 in forced appreciation that makes 1%.   I'd say the ladder is better.  Especially since now you have $154,000 to just rinse and repeat.  Seems like having 10 properties that follow the 1% rule is going to be better than the alternative.  You could leave more money in the deal so the deal "cashflows" better.  But it's like the opportunity cost of having that cash sit in the property is probably worse than reinvesting it.   

So there are two things to unpack here: Emotional Risk and Actual Risk. In terms of emotional risk everyone has different risk tolerance, some people will put every dollar on the line and or take high risk deals. Others will be super conservative. There isn't a right or a wrong to this and you can evolve emotionally as you become more confidant in your decision making. As far as actual risk, make your deals are fat and make sure you have a conservative amount of money in reserve. Those two things combined should help you get over your "gun shyness." What makes no sense to do is sit on the sidelines when you have potential private investors if you have a good deal in mind. If you don't know how to identify a good deal one or two books plus a bunch of podcasts on the subject will be enough to help you. You can become excellent at analyzing SFH in a matter of weeks if you're diligent.

The BRRRR method is essentially flipping FYI, the only difference is that at the end instead of selling the property you rent it and refinance. There is still a time constraint to the situation because you want to finish the job so you can refinance and repeat the process. Of course you don't want t rush the job, but you also don't want to be paying costs, interest and fees unnecessarily.

Hope this helps :)

@John Vu

 I live in South Florida.  It's extremely hard to get good CCROI deals here especially if you only (or mostly care about cash flow).  I picked up my first real estate book in early November 2018 and started analyzing deals here, most places cash flowed negative that were in the asset class I was looking at.  I ended up purchasing @David Greene book on how to invest out of state.  I closed on a property in upstate NY in January 2019.  A place where I haven't been with in a three hour drive of.  The CCROI is great (over 20%), but there will be little appreciation for when If and when I go to sell the property.

The general rule of thumb in a super competitive market is that when interest rates are low and there aren't a lot of deals you need to look to secondary and tertiary markets to get great cash flow, or maybe find something you can force appreciation with.  

 That being said those markets, including the one I bought in present their own set of problems.  A lot of the folks that boast about high CCROI forget to talk about the pitfalls and dangers that can come with them.  Not that you can't find an unbelievable deal in a great market, it's just less likely.

Hope this helps.

@Benoit Malige

I would like to participate in this event (or one similar) at some point in the future.  Is this the only day of the week that I can't participate.  I would like to start attending multi-family meetings.  

@Lance Lvovsky  Thanks for the quick response. I think I figured it out.

Hello Bigger Pockets,

I've just closed on my first tri-plex two week ago.  I received the closing document.   I received some credits for rent, taxes, water.... and some debits like school tax. I'm not exactly sure where to put this so my books are easily readable.   For example, I received $350 for rent from the 19th of January-31st of Jan, but had to pay $400 in taxes that the owner paid.  Any advice or help on how to document this would be appreciated.

If you want to become a great investor.  Develop the tools to do so.  That means reading books on investing, listen to podcasts, troll the forums, and network at local real estate meetings and conferences.  Maybe try to find a real estate office that had a lot of realtors who are investors themselves or represent a lot of investors.

I'm going to give you the advice I would give my 20 year old self. They don't teach several concept in school, so if you don't get them from your family you will have to learn them on your own: time management, finances, and taxes. Schedule every minute of every day. Create a financial budget because every dollar you spend is a dollar that could  be invested.  Live meagerly, some friends will get jobs and get apartments they can afford with their paycheck, but will be stupid b/c of the debt they've acquired and the fact they won't be saving that money for the future.  Learn how taxes work, especially when it related to real estate.

You're entering a world full of adults, adults want reliability and consistency.  Before I purchased my first home I let go of two realtors because they weren't consistent.  They said they would complete tasks and they didn't.  What's even worse is I had to follow up with them about it, which I shouldn't have to.

I'm not in a position to tell you whether quitting college is correct for you. This is a math equation based on what your income would be with the job you would obtain with a degree vs what you would make as an RE/investor. Also you need to include your quality of life in each equation. Going back to college is "safe" choice considering you're only 5 semesters away. But actually going to college in the first place is seen as a safe choice but often isn't. College is an investment in time and money. The investment is supposed to have an ROI in the form of a job that provides enough money to justify said investment. Most people do not calculate what this investment is worth. But you should make sure you do to understand if you're making the right decision.