All Forum Posts by: Logan Turner

edit: looks like someone already touched on this possibility


Quality of cash flow is fantastic concept to think about for long term buy and hold. 

Not saying this is true but one confounding effect for the low eviction rate in all these California cities could have more to do with difficulties in evicting people in California due to Tenant landlord laws. 
Landlors know this and instead do a cash for keys, etc.  
just positing here 






Originally posted by @Matt R.:

To further understand the quality of cash flow part, below are the top cities for evictions and the top cities for least evictions. 

Good luck! 

You can definitely cash flow in San Diego!!! Don’t listen to the nay sayers, it’s quiet simple and I’ll tell you how. 

Take 400k and use it to purchase a 600k house that you then rent out for $2800. Bam. Your PITI should be $1700/Mo. Factor in PM, vacancy, maintenance and cap ex and you should have a healthy 200-300/mo cash flow.

Giving you a 0.6 percent cash on cash return. Blowing out the 0.1 percent your bank is offering by a staggering 600 percent! 

But as far as 20-25 percent down.... no. Plus You could get such a better cash ROI then putting 100-150k into a rental and lose money each month.

I’m an out of town investor. I’ve sold a house with owner finance from a distance but had to have a local person assist with showing. I toyed with the idea of setting up cameras, and an electronic front door lock, where you could give them the 4 digit code. That way people could come and go. Another idea would be to hire a local person who you trust. If you are purchasing houses you should at the least have a realtor, handyman, GC, bird dog, etc. Have them do an open house. First drum up interest on Facebook market place, Craigslist and Zillow, hotpads etc. then have them do an open house from 10-4pm. Lock it back up and pick the best applicant. I ultimately decided to go with a PM. If it takes you 2 weeks extra to rent it out, you’ve almost lost all profit right there. Plus your PM is a boots on the ground person for you. They will help funnel off market deals to you. Another opinion on houses your considering. They will be the market expert. Truly, they should bring much more value then they cost. In addition, you should free up time to find more great deals. Not managing tenants. If you have a desire to manage tenants do it locally. But a 4 plex, or a SFH that you can BRRRR.

Originally posted by @Steve Vaughan:

Originally posted by @Mark Smith:

@Steve Vaughan I would assume the answer is 'it depends', but what would you say is an appropriate cost of capital for a refi?

 I flinch at a 10% cost of capital, but can still beat it pretty easily when I re-invest it.

Stripping equity is not always a good idea.  I've seen people 'celebrate' getting $8-10k cash out, forgetting the cost of the refi was a month of pain and $4k.  That's a cost of capital alone of 40-50%!  Better off selling something, saving or getting a 2nd job/side hustle for a little while in that case, IMO.

 Cost of pain.. bingo. 

Damn, conventional lenders are a pain

definitely don’t get an appraisal first. You may waste $500-800. I️ just did a cash out refi, and they said they had to use an appraiser from a list of preferred vendors or some bla bla. Basically I️ couldn’t find one, to come do it and hand it over to them. My refi: 112.5k, about 35k pulled out. Fees were $2850 4.8% 30 year fixed If you have a good w-2 Income and can float a few negative months, pull it out and get another property. But go for a SFH. That HOA fee is killing you.

1. Are you breaking even with a PM?

I would definitely keep it. Think tax depreciation benefit, debt pay down, and now you’re finally breaking even. Next year you may be cash flowing 100/month. 

There probably is a correction coming, but that is for the housing price not the rental price. 

Hold it, sell at the next market peak. 5-7 years from now. You should be cash flowing a few hundred a month then, have another 10 percent paid down on your principle and the house will be worth more. Of course, you should only sell if you have another opportunity to cash flow in another property.  

But really it depends on what your goals are. 

great insight @Tony Whitaker  thanks for sharing information on the market. 

No, but it is a cyclical market there. I can't speak to it first hand, only what I've learned from talking to people. If you haven't bought a SFH rental before, I would just go with north Dallas, or north Fort Worth. Good economics, increasing jobs, population etc.. For long term, hard to beat.

My play in Midland and Odessa Is more short term. Buy where there is a good spread, if we have an oil cycle, then I'll sell high and move my earnings to a more stable market via 1031

@Jackie Young Oil field workers = 1099 = don't qualify for financing easily (>2 years on job)

Again oil field workers = transient= don't want to get committed to a house when they may only be there 1-5 years

do not be intimidated by the brrrr strategy.  It is very simple. Read J Scott’s book on flipping properties so you can get an idea of repair costs. 

You have time on your side if you plan to move into it.