All Forum Posts by: David Hicks

Douglas Orr thanks for the information! Yes, I definitely have enough capital to flow the loan while in-between renters and to cover repairs and such. It's a recent flip, so everything is pretty much good to go. Just slap some new (used) appliances in there and rent away...

Ruth Bayang thanks for the insight. Yeah no penalty for taking up to 50k on a loan for 60 months and I pay myself back 5%. Otherwise the money is sitting there only making 6% and no equity pay down. I can always refi in a year or so and pay the loan off. Still holding on to my capital for a "better deal" down the road.

Ruth Bayang I understand that, however if I put my own $40k down it would "cash flowing" $500-800 per month. Since I'm saving my capital and leveraging my 401k, isn't it a different equation?

Hello, I am dealing with what looks like a great deal and here are the particulars:

• Duplex converted from SF Bungalo
• $170k for property in $180k-200k neighbohood
• Downpayment from 401k - average return is 6% normally, but this loan makes me pay 5% back to myself.  
• PITI = ~$1100
• Rental Potential = Low-End $1600/month or High-End $2000/month.  Could go higher, but these are more realistic numbers for the area
• Looking to get electric & gas lines split to add additional meters and sub-meter water - to pass all utilities on to tenants
• Monthly NOI (before utilities are figured out) $500-800
• Monthly 401k Payment = $840 for 60 months

So, I realize that the utilities could kill this deal and I am having those vetted during the 7-10 inspection period.  I am willing to make a small investment upfront ($1k-$3k) in order to know that my utilities are taken care of by the tenants going forward forever.  

My question, not to keep drawing it out - is it a good idea to use "no money down" in the form of a 401k and then to have a monthly payment of $40-$340 per month in order to save having to put $40k in capital down at one-time?  I know the idea is to make money off the investment, but technically, I am not actually putting any money down and the investment will also be helping me pay back my 401k.

I am also aware that I will have an opportunity to refi down the road and pull cash out, as this market is not slowing down in the rental area, anytime soon.

Thanks in advance for your honesty!

Hello All, 

I am looking at purchasing a quad-plex in Traverse City and I was wondering if anyone could suggest the following:

• Property Managers
• Utility Division Companies (ie. - 3rd party vendors that would individually meter my units)
  • Heat
  • Water
• Investor Friendly Lending Institutions or Portfolio Lenders

Thanks in advance for any guidance.

Hello All, I am pretty new to the landlord game but have been interested in REI for a little while now. I've run the numbers on my goal and would like to acquire at least 65 units within the next 5 years. Ambitious I know but I believe with the right guidance and education I can pull it off. To ramp myself up, I would like to acquire at least 2 more units this year, 4 next year, 8, etc... The difficulty I have come across is the issue of DTI and finding new ways to fund my annual goals. I'd be interested in seller financing without a doubt and recently moved my goal from SFR to MFR after losing out on a possible BRRR deal. Since I'm making it a MUST to stick to my goal before year-end, the MFR seems like the best way to kick start the dream. Currently own 1 SFR in the Royal Oak market and am looking to spread properties over the Metro-Detroit, Toledo and (random I know) the Traverse City area. In TC specifically, I'd like to keep a unit or two in smaller MFR's as a vacation or Airbnb rental for peak seasons. Looking to build relationships with those having similar goals, seasoned investors willing to lend advice, and potential partners. Also, would love suggestions for team members in the TC, Toledo and Detroit area (affordable attorneys, property managers, accountants, etc..) Thanks for reading the long-winded explanation but I figured it would be easier than a bunch of smaller posts.