All Forum Posts by: Jack Slattery

Good luck on your project. Looking forward to your progress reports.

congratulations!!!

I don't do rehabs. For me, a rundown house in a rundown neighborhood is a prescription for misery. 

When I look at a home, I first look at the biggies: roof, furnace, and A/C. A garage is a must. 

I also carry a line of credit on a mortgage free home that will take care of any catastrophe.

I am 72 yrs old and since I am retired I decided to buy SFHs to boost my income. in four yrs I have acquired eight SFHs with a gross value of over $600,000.

I have a good agent and a good banker backing me up. 

This winter I will live in Florida and while there, we are taking a trip to Cuba.

Not bad for an old "factory rat".

@Dan H. I like your idea of refinancing the 1st mortgage but how do you do it? My problem is I have to "bundle" because of multiple homes. I have never tried to refinance a "bundle". Maybe I need to speak with a banker about this. Thank you for your imput.

@Dan H., thank you for your advice. I guess I said it wrong when I said I had no equity in my homes. What I ment was none of my money save for repair money (which I get to deduct) is in my homes.  I suppose I would be in trouble if some major repairs needed done on a few properties at once such as fires or bad weather. I think insurance would take care of those problems. I could also do a line of credit and hold it in reserve for  major repairs. I suppose there is some risk in all investments, even RE.

@Wes Brand thank you on the @ thingy

Dan I don't follow you. I don't need cash flow to live on as my retirement is sufficient for me. Right now, my yearly cash flow after mortgages + escrow is approximately $30K on all my homes. That money goes to my LLC for future purchases and repairs. Save for one home, I have no equity in my houses except for minor repairs. I have recouped all my down payments.

I limit myself to brick ranches and cape cods in nice neighborhoods. They must be in good shape (I don't do rehabs). I gear my homes to middle class customers as they are the ones getting squeezed out of the housing market. My customers don't move. 

Appreciation means nothing to me as I'm not selling and I don't do 2nd mortgages. My goal is to leave my daughters with a sizable inheritance of real estate and I get the enjoyment of providing quality homes for my customers. 

I don't do the heavy thinking for profits (as I suppose I should) but it works for me. Thanks for your reply to my post. How do you guys do that @ thingy?

Minh Le, I buy homes for cash flow only. As I am 72 yrs old, I won't outlive any of my mortgages. I have enough retirement income that I don't need the cash flow so my homes are slowly turning into a money generating machine that buys me more homes.

I have only been doing this for a few years and my homes are already producing $30k cash flow to purchase more homes. My only regret is that I didn't do this years ago. 

When I pass, my children and grandchildren will have the SFHs to do with as they wish.

A side note, I do not do second mortgages. I have watched RE investors go bankrupt due to second mortgages.

I think now is a great time to invest. I recently purchased a house for $54K and I put 15K down. My payment including tax and ins is $414 monthly and I receive $750 giving me a cash cow of $336 monthly. I will recoup my investment in under 4 years. Faster if you count tax depreciation. 

You won't get that kind of interest at the bank.

Tim, I am buying, but not just anything. Only brick ranches and cape cods. Also, there must be a garage. I also look very carefully at the neighborhood. I screen all of the applicants. As I am in my 70s I don't rehabilitate. I use tradesmen for the repairs and bringing everything up to code. 

I have some homes out of the area and I use a property manager for those.

Here are two of my latest. They go fast.