All Forum Posts by: David Davidson

I'd like to solicit the collective wisdom of BP for advice on deciding between two scenarios to invest a small windfall.  I have an existing cashflowing duplex with great tenants, and I live w/in earshot of, w a note about 4%. About 550k equity, in a neighborhood that appreciates cyclically but quickly.

With this new capital, I'm wondering what would be more beneficial: zero the note on the duplex or invest in a basket of SFHs.  Running the numbers it seems it works out the same.  For instance:

• Scenario 1: zero duplex note w/ 335k. Yearly pre-tax CoC is 43k. Saves 222k in interest!
• Scenario 2: put 335k in turnkey 20 SFHs meeting the 1% rule. Yearly pre-tax CoC is 44k.

One thing that zeroing the note does is remove the mortgage deduction.  But isn't that totally offset by not paying out 222k over the next 28 years and having it cashflow now?

The headache of building up those SFHs seems daunting and troublesome, compared to simply paying down a duplex.  I'm corresponding w/ several turnkey providers and just not finding too many good deals.. 

Scenario 3 would be to wait for a downturn to buy into dips.

I'm open to advice on what kind of questions should I be asking myself about this opportunity?

Thanks in advance

@Dionte Graves  Thanks for your listing!  Would love to get more prop info and financials if possible to david.sasha.david at gmail.com

@Derrick Craig Hi Derrick, Thanks for your posting. Interested as well. Please send financials: [email protected]

Much appreciated!

Hi Quintessa,

Thanks for the post. Please add me to your list. I'm interested in 

Kansas City, MO

Indianapolis, IN

Jacksonville, FL

Big believer in these! I've had 18 mini splits installed in my previous residents, rentals & commercial properties: Sanyo, Union Air, Fujitsu, Mitsubishi, Panasonic, Comfort Aire, Daikin, Soleus Air.  Daikin have been the most reliable.  The 16+ seer models run super efficient and I've always had single head unit, as when the outside compressor fails, it doesn't take down a whole multi-headed system which I'd been counseled against by several experienced AC installers.  

Multi-headed units (w/ a single outside compressor) often require a special higher amp circuit.

Just had one installed here for a tenant during a heat wave.  They run it in a bedroom and have a fan in the hallway to cool off other rooms.

The units require more recharge and cleaning maintenance than ducted systems, but they seem quieter inside and outside from the larger central systems.