All Forum Posts by: David Campbell

Is Wilmington really the only place to look? Anyone in the local area know of any good areas to invest in large (5+ units) MFH?

Any fellow REI in the RGV?? Looking to connect!

@Greg Scott agreed definitely that these past few years have been a very unusual (read advantageous) time for investors. I just think in REI absolutes is too binary for me. I think most times there's shades of gray in there

I invested in a property in property in San Diego in 2015, whose numbers were indicating it was going to be cashflow negative by a couple hundred dollars per month. I was a little surprised at the near universal advice I received which was along the lines of "never, never, invest in cashflow negative properties." Whenever I hear the term "always" or "never" as a rule, I become suspect. I bought anyway. As I just sold it, I wanted to post the stats here to get people's opinions.

Purchase year: 2015

Purchase Price, etc: $585k, 0% down (va), 30 yr fixed at 3.825%

Cashflow negative amount per month: $300-400, but let's call it $400.

Total cashflow negative when I went to sell in 2021: $31,200 ($4,800/year x 6.5 years of ownership)

Sale year: 2021

Total left on loan when it sold: $480k

Sale Price: $1,006,000

Gross gain: $526,000 

Net gain: $465,000

So, it would have been smarter to forego this acquisition and the net gain in order to save $31,200? Or did I miss something.

While I agree that generally cash flow negative properties should be avoided, be careful when people advise you in absolutes. 

You can look for tenants on craigslist, fb marketplace, word of mouth is always good too. You can choose to market on zillow to cast wide net though they charge now FYI. 

Prior to acceptance run credit/ criminal background, get proof of income, check references and previous employment. 

@Jeremy Bailey I say keep it. What is compelling you to sell? You do have a lot of equity in it, however it is netting some really good cashflow IMO. If it were me, I'd keep it. Of course this is just one opinion. 

@Dmitriy Fomichenko Thank you so much. Glad to hear you have done this yourself as well, practicing what you preach an all. I have having trouble understanding the ins and outs of the UBIT though. What specifically makes UBIT included/ excluded? The type of investment? 

@Brian Eastman Wow thank you for that. I guess I "didn't know what I didn't know." This posting has definitely spurned more questions than answered (which I am saying is a GOOD thing) and I have a lot more to smarten up on. Thank you again, extremely helpful. 

@Michael Barnes Thank you for the info. Very insightful!

@Rick Pozos Thanks I will do that!