All Forum Posts by: Colin Clark

Insurance/warranty companies are obviously built to make money (charge more in premiums/deductibles than they spend on repairs).  They've done the research, and statistically, over time, you would end up spending more on premiums/deductibles than you'd receive in "free" service.  If that wasn't the case, the warranty/insurance companies would be out of business.  The only reason to consider using a warranty service (of any kind) is if you can't afford to keep enough cash reserves on hand for occasional major repairs.  As others have previously mentioned, the warranty companies are notorious for lots of exclusions and poor quality.  In my opinion, focus on building cash reserves instead of a warranty.  It will save you money and hassle in the long run.

A few weeks ago, I sent out my first direct mail campaign to a specific neighborhood where I already have a few SFH rentals. One of the homeowners that called me is interested in selling, but not until next year. He just started construction on a new home, but won't be ready to move out until late spring next year. I offered to buy his house now and rent it back to him at an amount equal to his current payments until he moves out, but he declined. He said he doesn't want to give up a year's worth of equity he would gain. He wants to talk again next year when he's getting ready to move out.

He bought the house for $148k.
I estimate he owes $101k on his mortgage.
I think he would agree to sell for around $175k.
I can pay with cash if needed.

I don’t get the impression he needs any money immediately or for any specific reason, he is very financially responsible.

Any suggestions on ways to structure a deal right now that could be mutually beneficial to him and me? I was thinking of some sort of seller financing so he can see some profit from the interest (and I rent the house to him until he moves), but I’ve never done anything like that before. I don’t want to wait to purchase until next year. Any ideas?  Thanks!

@James Orr... Nothing specific, just a general review of my investments/asset allocation and how they fit with my real estate portfolio.  I'd just like a knowledgeable neutral party to review what I'm doing with my investments and provide advice.

I currently own and manage 6 rental homes in the suburbs south of Dayton, OH. I also invest in my company 401k, an HSA and 529 plans.

I’m looking for a financial planner, preferably fee only, who has experience working with real estate investors. Anyone have any suggestions? I could travel as far as Cincinnati or Columbus if I had to.

Thanks!

I love your strategy #6 (buy one home a year for 15 years and pull the money out with a new loan once each loan matures).  This roughly the path I am headed down.  I currently enjoy my W2 day job so I have no need for cash flow now, but still like investing in real estate for future financial security and potential early retirement.  I would love it if you did an entire episode on on this strategy.  

Edward, I just received a very similar offer for my house for rent in Ohio.  They are offering 50% above my listed rent, 6 month minimum, etc.  Almost exactly as you've described.  Were you able to negotiate with them?  I'd like to increase the minimum lease length to 8 months.  Any feedback you have from your experience would be greatly appreciated.  Thanks!

Hello BP Community,

I'm a new member from Dayton, Ohio.  I've been investing in real estate for about 5 years, but I've only recently discovered the Bigger Pockets community.  I've been amazed at not only the massive amount of resources available, but also the number of experienced investors who share their experiences and opinions.

My full time job is a Project Manager for a commercial construction company, but over the past 5 years I've purchased 6 single family rental houses (5 in Centerville, 1 in Beavercreek).  I currently manage all of them.  So far, I love it.  I'm always looking for new opportunities. 

My original plan was to only buy single family homes in nice suburbs with highly rated schools.  The theory was this would limit risk and lead to higher quality, longer term tenants that would be less likely to give me headaches.  Generally, this has proven to be true.  However, I'm finding these properties don't cashflow as well as other properties might in lower property value areas, so I'm considering expanding into other communities.  I've also considered other metro areas in order to diversify.  At some point I may venture into multi-family if I find the right opportunity. 

I'm glad to be joining this online community and look forward to contributing based on my limited, but growing, experience.