All Forum Posts by: Dave G.

If you want to be leveraged to the hilt, sure go ahead and pull all your equity.

You've just bought two properties in ~1 year. What is your rush?? Take a breather, save up some money, learn about landlording and get your systems and teams organized. Experience some actuals for a duration, so you have 1st hand reality versus books and blogs. Make sure you have adequate reserves as both a homeowner and landlord. The faster you rush into things, the faster it can all unravel if times get tough. 

I speak from experience with this. Within a year of reading my first RE investment book, I acquired my first 3 rental properties in my early 20s. All three purchased creatively with no money down. Within 18 months I had dumped all of them at a loss because of many mistakes related to rushing into it. And having no adequate cash reserves, which was the single biggest contributor. 

Don't make the same mistake, This is a marathon, not a sprint.

Quote from @Dennis Maynard:

Quote from @Eric James:

Quote from @Jim K.:

United States Total Housing Inventory, 1984-Present

I doubt I'm going to be around see that event happen and actually be in any position to invest myself. The trend seems pretty damned clear.

 ??  Inventory always surpasses demand in real estate downturns. That's part of why real estate has regular downturns. 

 And yet, prices for the last 5 recessions has been up not down except for the crash and once in 1991 at -2%.  Everyone is trying to reference this market to the crash (everyone is a generalization, media etc).  It's not.

Talk about generalizations....then showing the average price change for the entire country in aggregate? How about individual markets or at least regions??

After the S&L fallout in the late 80s, the Phoenix market was totally in the toilet. In 1990 HUD and VA repos were a dime a dozen, vacant homes were all over Maricopa county. Prices were a fraction of what they were 5 years earlier. Where is that shown in your chart?? It's not.

The preference is generally economies of scale. But buy based on the numbers working. You don't always get exactly what you (think you) want. Ultimately, your want should be sound investments. 

The judgement I file for an outstanding balance after eviction shows up on their credit report.

If a current or previous tenant is pursuing a loan for an auto or home purchase, my prop manager will provide rent payment history in support of underwriting that loan. This is common for the lender to request this, even if timely payments don't show up on a credit report.

I would never deploy investment capital in a state where "collections and evictions (are) obsolete". If that is a new law, I would get the hell out...fast.

Imagine as you scale using multiple lending sources requiring this. You could wind up with a lot of checking accounts...

Partner with someone that has the $$

Get a relative to "gift" you the $$

Get off-the-record loan for the $$

Wait to do deals until you've saved up some $$

I think you mean Deed...

Good question...I'll be curious to see what someone smarter than me says about it.

Not sure how much help I am here, but here's a few thoughts.

I would research potential PM vendors now, before actually investing. You might find available services don't meet your needs, or have undesirable terms. And how do you run the numbers on a deal not knowing how much the PM service will cost?

I don't know about STR PM fees, but I prefer a fee structure that has my PMs incentivized to maintain occupancy and increase rent. I've paid a flat monthly fee before, and this is the worst type of agreement. Right now for 12 month leases, I pay one PM 8% of gross monthly rent + $600 new lease fee / $300 renewal lease fee. Another PM I pay a straight 10% of gross rents period. Either way, if the unit is vacant, the PM is not getting paid. And when marketing the property, they are incentivized to compete for the highest rent the property can get. Make sure the PM compensation is aligned with your earnings as the investor. Good luck to you.

And we have no adults in the room at the Fed these days. 

Paul Volker was a badass...

Whatever you do, don't rush it. You're 19 years old with your whole adult life ahead of you. It's a marathon, not a sprint...