All Forum Posts by: Chingju Hu

@Natalia Avalos So far I have two rental properties now and I'm loving it, I'm in the process of buying my 3rd and 4th property this currently. Feel free to pm me for any questions :)

hi all, this is really informative! So much overhead with LLC! I'm not going to have LLC then, thank you!

Hi bp: So far I have two rental properties, I'm getting more this year and next year so i am seriously considering opening an LLC for better protections. I live in CA, rental property is in TX, MO, and considering buying in FL soon, So where should I file my LLC? In CA or one of these states? What are the pros and cons in filing in CA vs other states( tax advantage, overhead, filing fee, ongoing fee, troubles, etc) please enlighten me, thanks bp!

@Monica Chan how about installing a w/d set in one unit and ask for slightly higher rent, the other no d/w and lower rent, see which one is more appealing to tenants

Renting and investing in multi-family seems better to me, because of the $1000 cash flow each month, equity pay down etc, where as $450k SFR seems higher risk to get the ARV as expected. (I don't know the market that you wanna buy the SFR, it just look risky to only pay down $22k and borrow that much...)

@Tyler Jahnke this thread is amazing! thank you so sharing the whole experience with us! How's your search on the next property?

Hi BP: I'm about to buy a property for $90k, and I'm debating whether to put 20% or 25% down although there's only $4500 difference.

The lender quote me: 20% down=> $18000 down and borrow $72000, 4.25% interest rate (conventional 30 yrs) => $354 PI monthly

And they say if 25% down => $22500 down and borrow $67500, the rate is slightly lower but will let me know the actual number on Tuesday because it's a labor day weekend. Assuming it's 4.125% => $327 PI monthly. 

Now I'm leaning towards putting 25% down because I feel better not borrowing too much, and it's only $4500 more. I still have enough cash reserve. Monthly cash flow is $27 more, CoC is slightly lower but really not much difference and I can do with that.

My hesitance is that most of ppl I see here maximize the leverage and they will go with 20% instead of 25%.

I don't know if it's really the case in the real world because I don't have many investor friends in my circle.

So BP, what do you say? with only $4500 difference, which one is a better strategy?

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I read his blog as well, FIFighter has lots success investing in the stock market and in the properties in the SF bay area, that's why the turnkey experience is not as good as his other success. But I think different people have different type of investment they are good at. Maybe FIFighter is meant to be a stock investor or something.

Another Blog I follow is 'cash flow diaries' http://www.cashflowdiaries.com/ This guy has 4 or more turnkey in Indianapolis, he loves it and after owning them some time, he even moves to Indianapolis. He's very pleased by the cash flow. He doesn't invest in stock and 401k afaik.

Anyway i think different people have different cup of tea in terms of investment vehicle. it's good to know their stories from both side and determine which one you choose.

Hey from the post I can see that you will achieve those goals! I always have lots respect for entrepreneurs and you seem like a successful one !especially since you had nothing before and nothing to lose. I say go for it, all of them!

I'm very conservative in terms of bad debt. I don't have any and don't want any. So if I were you I would sell the house all together, pay down the student loan and be done with it, move to a very small and humble place to save rent. And then I will use the 70k saving and all the left over from the sell to buy another property or something. And meanwhile working my *** off to increase any earned income and save as much as I can to buy more and more property which is pretty much what I'm doing right now... I rent a living room to save rent and save money for rental property... Although it's hard to let go of something you already own, I think it can set you free (from the student loan at least) and you can start over pretty quickly and own another multi family soon, even a better one than you have now. You seem young, ambitious and smart so it shouldn't be a problem for you. Just my .02