All Forum Posts by: Chris Youssi

Not sure if this advice is on here or not as I did not want to prune all the replies, but to me it is very very simple. Rent it for 1 year then sell it as it becomes capital gains / about 1/2 the highest tax rate from the feds not sure about your state taxes. A complete no brainer to me - I never ever flip props anymore as it is way way too expensive . As far as a new CPA or "you need professional advice" etc... sounds like to me you have plenty of good input from savvy investors.

Congrats on your success and best wishes moving forward.

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In my opinion, netting only $100/ door is not enf for me to even consider.Fix it flip it ( if you have owned it for a year so its capital gains ) and reinvest buying 2 SFR that create $300 / door - which is what I average in my market . Averages are as follows: appraised values $105 / rents $1170 / cash flow $300 / 22 are on 13 year amort - 8 have only 6 years 1 month left / vacancy rates .7%. Perhaps not obtainable in the market you are investing in but tweak and apply.

Best wishes moving forward!

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Interesting spin on alternative ways to invest - something In never would have considered . Curious how many days of the year is it rented / 365 to grab those returns?

THX for sharing and congrats!

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Looks like I will be in Nashville that Monday sorry hope to be there in January.

THX Craig!

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I would be all over it and forgo the partner idea if you have the financials. Not a fan of partners especially when not needed. My only concern is the month to month concept as that could prove to be a management time hog.

>>>> in the process of building 12 new duplex's tenants love the shiny penny!

Go get em!

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Originally posted by @Patrick Huey:

I'm a resident of Rockford, Illinois but I do not own any investments myself. I can tell you that there are good and bad areas of town for investment, and since you indicated you're from well out of town, you need to find yourself a good property manager to give you the ins-and-outs of the metro area. Prices are incredibly cheap, but that's a reflection of the overall job market. This area has been depressed ever since 1980,and while there has been some recovery at times, it lags well behind the national average. The schools aren't particularly good, though there are some decent private and religious schools in the area plus there is a magnet school which is aimed at academically gifted students. We are building another hospital which is expected to open sometime next year, and another one of our hospitals went through a major expansion,so there are definitely more jobs being created in health care.

I wouldn't invest here in hopes of appreciation, as prices have barely budged,and even higher percentage appreciation gains are relatively small in actual cash. But if you're looking for cash flow, and you do your due diligence on properties, there a a ton of hidden lucrative gems

Just so I'm clear you own nothing in our market and are giving advice? Thats absurd - you have no as in zero qualifications. I have lived here for 54 years and we are a big small town with ample opportunities. Do your homework about jobs next time you misquote Rockford - here are a few facts: Close to 1000 jobs created at our airport within the last 2 years / nearly 500-650 jobs added in the medical field within the last 12 months / our electric company has added another 400-500 high paying jobs in our marketplace within the last 18 months . All these jobs are high paying jobs most of which do not require a college degree. Our avg home this year sells for around 140,000 YTD back in 2010 it was around 90,000 - thats a 50% appreciation rate within the last few years. Rental rates are minimum $1/sf / month. All towns have issues ours included - non qualified rants like yours are uncalled for and irresponsible!

Yes I own ample properties in our market both City County and surrounding towns and am sold on ROCKFORD!

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Rockford, Illinois

Originally posted by @Joe Splitrock:

Equity: Equity is the difference between the value of the assets and the value of the liabilities of something owned.

Net Worth: The total assets minus total liabilities of an individual or a company.

Dead Equity = Net Worth

Replace Dead Equity with Net Worth and see how the discussion changes. There is way to much "equity shaming" taking place on Bigger Pockets.

Leverage is risk, more leverage is more risk. Risk can lead to reward, more risk can lead to more reward. It can also lead to financial ruin. It is a balance and changes over time. Often when you are young, starting out you will take more risk. You have nothing to lose. As you acquire assets, you reduce risk, because you have more to lose.

I concur 100% "equity shaming" is more of a realistic assessment for those who believe being highly leveraged is the go to answer for growth > I could not disagree more as "the borrower is slave to the lender" . In the case of being highly leveraged when corrections occur and they will - your equity becomes vapor .I have 65% LTV overall on my portfolio and will be in the 60% range 12-31-2019. Some of my debt is 80% LTV some is 45% depends on the asset. in 6 years 1 month I will own outright at the young age of 65 8 SFR outright bringing me 100k / year TY very much . One thought that is never brought up in this discussion because frankly it is hard to calculate is the return on your investment that is paid off by your tenants. I only invest in Townhomes/ SFR and as such have greater upside potential than the "door " concept. True it can go south but during the last correction my rents increased not decreased. My equity is not dead but alive and thriving thanks to my tenants!

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Bummed we cant make it Craig - we will be in Nashville working on our home down South. Always enjoy the fellowship and sharing of ideas from the group.See you in December.

Chris

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IMHO you can have it both ways - again depending on your objectives. I certainly agree with the concept of minimal initial investment, however I am a huge fan of anything less than 15 year fully amortized loans. Choose your investments wisely and you can have the best of both opportunities. Be patient and always be a buyer that does not have to buy.

Happy Investing!

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Originally posted by @Dustin Woodley:

Montgomery Alabama! Low taxes and insurance! Two military bases plenty of industries! Landlord friendly state! hear are a few examples: These is a local investor that totally renovates and offers a warranty on the work. These places look amazing. He just sold one of them for $78K & $81K. We have rented both of these in less than 30 days! The rents we are getting are $850 per month with one year leases!! Here is a link to one of them! https://camelotproperties.appfolio.com/listings/de...

Hope this helped!!

Curious what is purchase price/ taxes/ insurance/ appreciation over the last 3/4 years / vacancy rate etc...THX

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All Forum Posts by: Chris Youssi

Chris Youssi has started 5 posts and replied 282 times.

Post: How to avoid taxes with primary income from flipping properties?

Post: Hold property until the end of the Mortgage, or flip now

Post: $20k a month in cashflow on one door

Post: Dec 3 Winnebago Investor Network (WIN) Dinner Meetup

Post: 25k lot build a 4plex?

Post: A RE newbie looking to invest in Rockford, IL

Post: Dead Equity - How much money do you leave in rentals?

Post: November 5 Winnebago Investor Network (WIN) Dinner Meetup

Post: ready to buy 3rd property, 15 or 30 year?

Post: Best Cities to invest in under $100k