All Forum Posts by: Christie Gahan
Christie Gahan has started 25 posts and replied 302 times.
Post: Smart Property Managers!!
- Investor
- Hillsboro, OR
- Posts 304
- Votes 152
Quote from @Account Closed:
I'm a smart PM. :-) Not in your area, unfortunately. My customers find me mostly through referrals from other owners and people I know.
I am confident that you are! ;)
Post: Smart Property Managers!!
- Investor
- Hillsboro, OR
- Posts 304
- Votes 152
I know there are smart property managers out there. I'm not meeting them in my area. Need tips on how to find them!!!!
So, if you are a smart property manager, how would I find you?
Thanks.
Post: I have 5 houses renting, what's next
- Investor
- Hillsboro, OR
- Posts 304
- Votes 152
If you have not done so already ....
Time to invest in kick *** accountant and lawyer. Dig deep into tax strategy, tax efficiency, etc Learn about estate planning. Time for a team.
Personally, I think I would stack some cash for a year or so while I did this. Learn about multi family and mobile home parks. I keep reading about all the weird financing issues in this space so I wouldn't actually put money in until mid 2025 or later.
Post: Lost our cash investor on 1 acre with house in Oregon
- Investor
- Hillsboro, OR
- Posts 304
- Votes 152
Kelly, you must be frusterated and bummed right now. I get it. But, the better you know your market and how to analyze deals, the more you will attract serious investors. This time you are in right now is the "Learning and Paying Your Dues". Everybody has to do it. There is no way around it. Every realtor you talk to had to go thru this too.
Sent you a PM
Post: Today I fired the Own It Detroit team after spending over $800k with them.
- Investor
- Hillsboro, OR
- Posts 304
- Votes 152
Quote from @Steve K.:
Could this be just a spreadsheet error/ projected expenses estimated too low on your part? I'm asking because we see this all the time on the forums where beginners go into a cheap/ low rent market without realizing that those low rents are inadequate to cover the expenses of operating a rental. What we usually see is people using a percentage of rent for capex/maintenance and repairs (like 10%), without really looking at what that number actually is and making sure it's enough to cover the costs of maintaining a property. For example if your rent is $1,000/month, and you're using 10% of that, it's only $100, which is not even enough to get a plumber to come to the property, nevermind fix anything. A home is going to require minimum $300/month in upkeep costs no matter what (closer to $500 minimum in my experience, $5k-10k per year is what I have averaged in expenses on my SFR's over the past 15-20 years). I use hard numbers not percentages to estimate expenses for this reason. These properties may never have positive cashflow unless you're allocating enough for expenses... and not even perfect property management (which doesn't exist) can fix that problem. What is your monthly budget for capex/maintenance and repairs?
SteveK : You are making excellent points here. This is why I cringe when I hear people discussing how much "per door". "So, 20 doors and I'm rich!" Uh, no. If you buy 20 doors, all that means is that you bought 20 doors. It does not mean you have cash in your pocket. And, if you have cash in your pocket ... did you do adequate maintenence? There are so many moving parts in rental real estate. Always something new to learn!
Post: Lost our cash investor on 1 acre with house in Oregon
- Investor
- Hillsboro, OR
- Posts 304
- Votes 152
To me, a sight unseen cash offer, says " Sure, I'll tie this up so I can do my due dilligence. Then I will make my actual decision." They can pop right back up on the market. Use this as an opportunity to meet listing agents and get on their buy list!
Post: Lost our cash investor on 1 acre with house in Oregon
- Investor
- Hillsboro, OR
- Posts 304
- Votes 152
I like your market. The budget seems low on the new build. ( I'm not an expert).
How did you find this deal? I would contact the seller and ask for an extension. A cash only, cat horder house in Feb? There may be other bidders but there is probably not a line around the block to buy.
Sending you a PM
Post: Dscr Loan New Construction
- Investor
- Hillsboro, OR
- Posts 304
- Votes 152
Run all your budgets as a LTR . If your STR is allowed and profitabe, Great! Do a happy dance! But, you need multiple exit strategies.
Post: Working towards our “why”
- Investor
- Hillsboro, OR
- Posts 304
- Votes 152
I find it strange that you are concerned about the hobby farm payment to be a little tight but are okay with the risk and expense of buying a second property.
Post: Working towards our “why”
- Investor
- Hillsboro, OR
- Posts 304
- Votes 152
Put some time in to tightening down those numbers. Get with a mortgage broker, or two, and see what you qualify for in terms of a new home loan. Ask about rate buy downs etc. Get some solid numbers on what a payment would be. If you keep your rental, it will affect your debt to income ratio. You may have no choice but to sell your current home. Also, look at what your rental income might be. How much of that income will the mortgage companies allow you to use as income on the loan application?
I would not piddle around with a rental. Even if you can rent it for $800 more then the payment, that does not mean you will be putting $800 a month in your pocket. If prices go up 10% on your hobby farm that is $50k. Your rental is gonna make you $5k. If you want the farm, you need to focus 100% of your finances on getting the farm. You can circle back and get investments later on if you want. (Like when the kids are older and can help paint.) You are making too much importance on your 3% rate.