All Forum Posts by: Kyle Thacker

For males and females between 25-34 college graduates make 1.75 times more than high school graduates.

Ex. Male No College - 32,000/yr
Male College - 55,000/yr.
Ratio - 1.71

For female the ratio is 1.8

This data is from 2008 Dept. of Education.

Even being a little outdated it is certainly relevant.

The value of a college degree really isn't in what they teach you in your classes, although classes such as economics, finance really do give you some useful information. The value is in the degree itself it opens that many more doors than someone without a degree.

Beyond that the degree won't keep you the job that is up to you and you will likely use hardly any of what you learnt in college in your actual job, but it got you in the door.

On the cost side, there are some very inexpensive public universities.

I would look into SFH's or a small apartment building. No HOA fee's and such to deal with so your returns are already increased.

The next thing I would do is not pay all cash unless you are planning on flipping it or unless you can get a better price then refinance.

Leverage makes your returns that much better as long as you are buying right. The deal you mentioned I would not consider "right".

I agree with Eric on this why hire a property managment company when you are going to be living right there?

Since all of the tenants have been there 6 years or more you shouldn't really have to do much but collect rents and arrange for repairs when something breaks.

If you are replumbing the entire house I would highly recommend PEX. It cost be about $.40/ft in materials.

Alot cheaper than copper, and I like it alot better than PVC.

I haven't heard anything bad about it. Only thing is your plumber will have to have a special crimp tool.

I am going to have to agree with everyone. Alot of the time cash offers will get you a lower purchase price. Especially if it's an REO or a motivated seller. Being able to close quickly is a key advantage to cash.

Then to maximize your returns refinance. I would definatley recommend having a relationship with a local bank and knowing your going to be able to refi and what the terms will be.

I agree with Paul and Joel.

There are much better returns out there. With this your COC return is really quite low. I would be shooting for alot better CAP rate.

Otherwise like Paul said you are taking equity-like risk for debt-like returns.

Don't forget that these aren't hands off investments it will take some of your time no matter what. Just keep that oppurtunity cost in mind when you are deciding on your CAP rate.

In my area you can buy properties with a 20-27% COC return, leveraged of course. These are SFH's also Multi-Family in this area tend to have slightly better returns because they tend to appreciate slower and are harder to sell.

Just some things to consider.

I would tend to think that the people that have deals that are consistently successful in this business have very strict guidelines on what they invest in.

With that being said there is money in all different types of real estate, but specializing allows you to realize when it really is a deal.

So me personally I would pass on something that SEEMED to be a deal if I did not have the proper expertise myself or know someone who did.

I turn 21 next month and my credit score is 770.

Since I was 18 I have had a credit care with a $250 limit, which I only used occasionally and paid the balance in full every month.

At 20 I canceled that card and got a card with a $1,000 limit. I still very rarely use it and if I do it is paid in full at the end of the month. I have no other debts.

I use the credit card for the sole purpose of building credit. I am sure there are better ways I could have built my credit, but this has worked out for me.

My name is Kyle Thacker, I currently am a college student finishing up my Engineering degree. I also work for GE as a Project Engineer.

Now onto why I am really here. My family has owned rental properties since I can remember (I am 21 now). I see the fruits of the labor so to speak of owning 15 plus free and clear SFR. I just recently purchased my first REO SFR.

My goals are to gain insight into how to find the best deals, analyze them and maximize the return whether it be wholesaling or holding long term, depending on the deal structure and market conditions. I like what I do as an Engineer, however I come from a line of entrepreneurs and I take much more satisfaction working long hours and taking an ownership in my own business than working a 9-5 with a steady paycheck from someone else.

BP is a great resource and I would like to thank Josh for the wonderful job he has done.