All Forum Posts by: Ian C.

Love the goals, # breakdowns, cash floor by door analysis and the aggressive/bullish stance.  I, like you Josh, have similar goals for 2016 and it's inspiring to read similar outlooks. 

Nicholas,

I think it all boils down to cash flow. While I never heard of 40 yr mortgages, I would gather they have the same style/format as other FHA products in the 15-30 yr. If it assists you in getting in the property, go for it!

It's all in the cash flow and cash-on-cash returns.  Like Rocky says, browse around here for some great tips. 

Hello BP Forum'ers,

I haven't posted in a while -- but wanted everyone's take on a fairly common question, but with the uniqueness of my actual numbers, figures and situation

Goal -- grow passive income quickly through buy and holds -- my market is Upstate NY and I presently own 7 units total spread over 3 properties (2 doubles and one 3 unit) Initial goal was to acquire 8 units/year x 5 years all netting (before income taxes, but after my debt service payments and all other expenses) $200-250/month/unit so around 10K and month in "passive" income from 40 units. I commenced in Dec 2013. So far, so good. I do have my properties managed.

I use a combination of "rollover" rental income (basically taking any net income and plowing back into the next purchase, snowballing maybe?) and existing cash reserves from a part-time position I have, to fund my purchases. I do not do, at least not yet, no or little money down ventures......although maybe I should look closer into that.....(and read the recent blog entry on the subject!!!)

I have around 20K right now to use towards the next purchase. I have a portfolio lender and no # of mortgage limitations. Just looking for some takes here ---

Option 1) I have a potential deal for a 4 unit grossing 2200/month in B area with B+ property. Would exhaust 20K on this one, and increase net per month profit by about 1K to roughly 2500-3000/month net for my entire portfolio.

Option 2) I have two separate doubles as an option (on in 40s, one in 60s) B to B- areas and B to B- properties, both would net $500-600/month. Could buy one or the other or both.

Option 3) I have been scouting a "larger" (for me) play at 10+ unit apartment buildings. Thought would be use combo of 20K and private/family loan $$ to get into a larger property, cash flowing at some economies/cap rates as my current props and accelerating cash flow. This is of most interest, but with the 'newness" of this type of deal for me, I have some trepidation. 

Option 4) Wait a little while longer 3-6 months, build some more down payment $$ and look to make a move then....

Option 5) something different entirely?

Back to goals -- quicker acceleration of cash flow is probably my overarching goal.  Thanks for feedback!

1. Relax and at least consider monotasking

2. Finish my doctorate

3. Acquire at least 8 units each netting $200/month income to align with my Jan 2014 plan of 8 units/year @250/month X 5 years. 

4. Help others with RE questions

5. Learn and live

...the podcasts.  They are enjoyable. 

...Brandon's wardrobe 

...great tips for newbies like me

...forum posts and ability to Q&A with investors and experts across the country has allowed me to expand portfolio from 0 to 7 units in less than 12 months and netting $1500/month.  

I sort of like the catchiness of "additional traditional" but on to the question.

I have one duplex - cash flowing fine - mortgaged "traditional" with 5.3% - 30yr fixed. I put down 25%. Value at 90K, I have a 63K mortgage.

Purchase offer on another duplex. 50K. Assessing financing options now but looking at "traditional" 15 yr at 3.25%. 25% down.

Finally, I am assessing two other duplexes. One can be had for 40K, the other 50K. I am butting up against "traditional" Fannie/Freddie mortgage # limits here, and I have done some research on BP forums for some guidance in this area. Just wondering everyone's take on this next move -- if I can get a lender to do a portfolio/blanket loan, should I capture these next two via this method? Or should I go conventional/traditional and just get two new mortgages on them? My FICO is 780 and I am employed FT. Or some other alternative altogether? The two are sepately owned and neither has owner finance as an option. Thanks for any and all advice.

Thanks everyone, definitely leaning towards the 2-3 purchases. Will keep you posted.

Hello everyone - newbie here with one property in ownership, a so-far/so-good performing double. Cash flowing at ~$200/month/unit.

Have $30K in cash and want to make the next deal or set of deals. We all have goals and my goal is acceleration to 40 units in 5 years, each unit producing roughly the numbers above. In my market, doubles can be had for $50K and will produce after everything but income taxes (PITI, PM, vacancy, etc etc) ~$200/unit/month. For this next move - I am looking at a decent 33K property that will get $1000/month in rents as a potential outright cash purchase - or - using the $30K as down payments to purchase 2 or 3, 30-50K properties using conventional financing (provided my DTI ratios are within margins at that point to get mortgages 2 through ??)

Thoughts/comments/advice? Thanks!

Hello Everyone - just wanted to say thanks to all the BP team for guidance, networking and idea exchange. Under contract on my first investment property. Duplex. Looking at $250/unit/month cash flow.