All Forum Posts by: David B.

Hey William,

Your strategy is more in line with my current outlook and situation. Saving for the acquisitions of Multis while holding on to at least half my current portfolio for CF and large expected and/or unexpected expenses. Repeat the cycle until I'm holding mostly Multis with a few SFR for good measure. Maybe you can let me get a look at your evaluation on your 50 unit after you put that deal together. I never done the numbers on a building of that magnitude.
I too am going down to Florida in April to look for a Condo. I was also heading to Atlanta to look for properties this month. Are there many Multis in Atlanta, I don't recall.

I drive a whole lot as well. I drive to Racine, Wi almost every other weekend for my rentals that I have there. plus through the Milwaukee and Whitefish Bay areas looking for more properties.
Other than the numbers making sense, what other criteria are you looking for in your Multis?
I will be using the 1031 exchange for quite a few upcoming purchases as well. I plan on leaving a sizable portfolio to my son and daughter. So no big cash out for me.

Nice investing William.

Thanks again Dennis,
I too am investing with retirement in mind. I would also like to leave a nice amount of real estate to my children. Nice investing!

Hey Dennis, thanks for your input.
How long have you been a commercial investor? Will you eventually trade up, leave to heirs or cash out? I really appreciate the feedback from everyone.

Not bad...that's a great deal Ben
Minimum cash out of pocket
Superb cash on cash return
Great CF
If cash is King then leverage is Parliament

Ben, I like your strategy

Great job with the 10 unit. I will take your advice and continue to CF while passively looking for a Multi.

How is your deal on the 10 unit structured? Are the units rents comparable to your SFR rents or much less?

That's great Brandon
Once you acquired your multi do other investors approach you about other commercial deals? Are they really far and few apart? Is it something you see leaving to your heirs or cashing out in due time? Do or would you still acquire SFR?

Thanks Rob K

I will continue to acquire properties cash but I too think Ben has a point regarding leverage. I think a combination of both will build a nice and diversified portfolio.

I still think leverage is the best way to acquire properties because it gives you the most bang for your buck. I acquired cash properties mainly for CF but I will be using leverage to continue my quest for more appreciating properties (speculating) and strategically placed CF properties. Leverage certainly helps the RE Investor cushion the blow of inflation.

The no leverage strategy does open you up to possible lawsuits that's why asset protection such as land trusts, corp structures and insurance are important. I also always used the idea that @Brandon Turner spoke of in an blog he wrote about a month ago about being the property manager and not the owner. Most my tenants continue to think I'm the employee who is the peacemaker between the two.

Hey Mike
Glad you joined the conversation..what you shared is exactly why I am torn.

I would love to have the large Multiunits cash flowing and really beefing up my portfolio but what if I have a major unexpected expense. I can't just divide the multi into equal parts and sell or leverage part of it easier than SFR. But I would like to own some nonetheless.

Hey Ben..
We can swap notes anytime..nice investing

I decided to never over leverage myself again after the housing debacle. My personal credit took a hit and I knew it would be difficult to get loans during the time. So the money that I made from flips, rent, consulting, construction ect. went into acquisitions. I acquired REO,s sometimes in bulk from a broker who had an exclusive client (bank). My brother and I did some work and we had a RE team (lawyers, accountant, agent, contractors, ins agent) that had already been together for almost ten years. After about the first seven they began to pay for themselves via rents. On average, price per home through the REO specialist was about $25,000 with most times minor and cosmetic repairs needed.