All Forum Posts by: Daniel Lochen

A family friend is selling their storage units that produces an income of $4800 with 2 acres of raw land.

Numbers:

Asking price is $750000

Taxes = $460/mo

Insurance = $140/mo

Income = $4800

Scenario:

Family friend is willing to do a contract where I would technically be an employee and trade my time for shares of the storage LLC. So there would be no down payment needed and essentially no risk. The only issue is that the numbers show the property breaking even at $500k and their asking for $750k.

Is zero risk and potential room to grow worth $250k?

@John Teachout thanks for the input!

Looking at the history of houses sold on this lake, I have yet see one depreciate in value when markets settle. "Not sure if this is accurate for most lakes or holds any real value when calculating decisions. "

I did forget to weigh in the capital gains though... thank you!

@Bill Ward thank you for your input!

@John Teachout sorry I should have clarified!

Lot #1 is a .75 acre lake front lot with a 4 bed 2 bath split level built in 1974 with an attached garage and 100ft of sandy shoreline.

Lot #2 is a . 75 acre lake front lot with a 2 bed 1 bath house built in the 70s, a 30x30 detached heated garage all on 80ft of shoreline.

Lot #2 is where I currently live but plan on moving to lot #1 for more room.

-I'm just not sure on how to look at the numbers when it comes to having the best return for my money...

Plan A) Consider putting the profit I make on the sale in an average market (stocks, 401k, foreclosures)

Plan B) Hang onto property #2, rent it out, and aim for cashflow and appreciation.

Note: Appreciation on this lake has increased considerably more than others due to its size and location.

I currently live on a lake in a great location. A couple doors down I've managed to purchase another home on a better side of the lake with more square footage for my family.

The way I see it, I have two options...

1.) Keep both houses. Live in the bigger home and rent out the smaller house which would cashflow roughly $300/mo

2.) Sell the smaller lake lot for roughly $175k profit and invest it in other markets.

Things to consider:

Purchased the bigger lot for $600k under contract for deed with 4% interest for a five year period with $30k down

Purchased the small lot for $210k with 3.5% interest with $172k left to pay. Was told I could list it at $350k.

Any input on ways I should be looking at this?

Thanks in advance!

@Heath Ryans could you possibly share this link to your podcast that you recorded on financing your first 4plex?

@Bob Langworthy

Helps tremendously. Thanks! I sent you a Message.

@Ryan Seib

Thanks for the reply. I will definently remember this going forward!

@Steve Morris

Thank you!

@Chris Reyes

Not to sound cliche... Making an impact on others is my drive.

Sure, the money is great! But no one dies wishing they had more.

Every property I purchase will be a clean and safe environment for starting families and starting businesses. Life is intimidating enough and moving homes or starting a small shop can be a big deal to some just like purchasing a property is to me.

And hopefully with more time and experience, I can help others grow through real estate just as I did.

As I tell my renters before they sign, "we help each other out".