All Forum Posts by: Chase Gochnauer

Hey guys,

I have about 55 units going on 130 and will continue to grow. I always have 3-4 house rehabs going on as well. I'm looking for a project manager to help ensure things get done in a timely manner. It would be working on rehabs, helping with occasional repairs, etc. I have a 3rd party PM in place that handles most PM related issues, but there are always units that need rehabbed when they become vacant, etc.

It could be a good opportunity for someone that wants to learn, but has some construction background as well. I would see the job being a couple of days in the office and a couple of days at properties. We have a normal office location with office staff. Pay would be negotiable based on background.

Let me know if anyone has interest!

This completely depends on your plan. If you're in it for the long haul, plan on buying and holding another 5-10-20 years, then don't sell. The little bit of owning a property is the most challenging(in my opinion) but once you get it running smooth, that's where you make the money. If you already have the 4 unit running smooth then just keep it.

Robert, I'm a white male as well. In this situation, what "special program" are you referring to? The OP is talking about the landlord potentially not renting a home to him for his family to live in, based on skin color and is terrible. While I think there are some instances where the "PC culture" gets taken a bit far, this is definitely not one of them and your comment doesn't even apply to this situation.

 I would imagine that it's only illegal if you can prove discrimination. But I would agree that either the landlord is very naive, or being discriminatory. I'm a benefit of the doubt kind of guy, so I would hope that it was just the naivety of the landlord. I understand your frustration/concern here. I'm not sure how I'd handle it in your shoes, honestly. Perhaps see if they have lots of other properties. If it's a person renting out their previous residence and it's the only property they have, I'd chalk it up to naivety. If the landlord has 20 rentals, then it's more suspicious.

This is generally illegal on the banks part. Look up redlining.

They go hand in hand a bid. Generally your cash flow is going to be based upon a return of your net worth. I know there's exception, but for the common investor this is the case.

Even if you follow the BRRR method and buy a property for $50k, rehab it for $30k, and refinance 80% LTV and get your full $80k back out because it appraised for $100k, you're still getting a return on your net worth as the remaining 20% would be your net worth.

Would I rather have a $2M property that I owe $1m on with no cash flow, or $500k with no mortgage and cash flow? #1, every time. 

If you are 50% LTV and not cash flowing, there's something inherently wrong with the investment. You would be cash flowing as much/more in option 1 as you would in option 2 in the same market. Option 1 you'd have a large depreciation tax deduction also to allow a portion of the cash flow to be tax free as well.

Save until you have enough for a down payment and a cushion for major repairs(furnace, roof, etc). Then, invest. Being overleveraged is more a factor of risk than it is anything to do with net worth. The more highly leveraged you are, the less likely you'll be able to survive a large market downturn. This was a big factor before the crash where people were 90-100% financed on investment properties and had no cash flow. Here in Iowa, if you're 80% LTV on a rental, I feel pretty comfortable that the property would survive a market down turn since we don't have large swings in appreciation/depreciation like other areas.

I echo Mike, I'm in the same boat, 30+ local mortgages. Small local banks are the way to go. Short 20-25 year amortization and 5-10 year fixed are the only drawbacks. But with them, you'll just be limited by how credible you are to the banker and their bank board. Show good performance on your existing properties, and be a credible buyer and you won't have a problem.

I have never used my conventional slots, though, until recently. I'm picking my highest dollar properties and getting them on 30 year fixed FNMA loans until I hit my 10, that keeps the cash flow high on those and locks me in at a decent rate.

Hello,

There is a 41 acre piece(34 residential, remainder commercial) next to my home that was going to become townhomes. My area is all nicer acreage style lots. I purchased it from the developer and am making 1/2 - 1 acre lots with a few townhomes. Below is the final concept I've come up with. The detention on the west will be a nicer pond with fountain. My property is adjacent to the east. The north side is a commercial lot that I'll worry about later.

Any opinions on the layout before I pull the trigger?