All Forum Posts by: Drew Y.

@Sunday Nguyen I started mainly with personal cash, (mom/papa investing mentality) . Do not use more than you have and don't get too far into debt (Asian parents ) . However, I have started to use leverage lately as well as starting to bring in outside capital and investors and partners. This I have realized is really the only way to grow outside of your own personal funds. We can chat more directly if you like. ping me if you are free to talk shop and trade war stories and maybe we can find a project that we both can work on.

Cheers

Great see you there!!! 

@Armin Nazarinia Always willing to help folks learn and grow, as that's how you get better. So feel free to hit me up and talk shop or work through some of your real estate issues. 

Cheers

@Jason Skelton thanks, I will give them a call. Cheers

@Armin Nazarinia So currently I have 5 mortgages including a commercial mortgage. So my buy and hold portfolio does spill off a fair amount of excess cash reserves . Since interest rates on those loans are currently between 3.85-5.75%, I look at it via a cost benefit lens. 

For my buy and hold portfolio I have a few buckets that I put funds into. Percentages vary depending on your strategy but here is generally how I use my excess cash from this portfolio: 

Say you have extra 1,000 bucks after paying your monthly expenses and putting aside money for reserves: I split it out in the following manner. 

1) Additional rainy day fund for CAPEX and repairs. 10%

2) Additional Acquisitions budget 50% 

3) Additional Debt paydown 25% 

4) Stocks / Bonds/ Pay myself. 15% 

I definitely prescribe to the pay myself first , and have a more conservative approach when dealing with debt . But for me if if I didn't have a use for the cash then I would rather reduce my debt load quicker, which ultimately increases my cash flow as my that debt is paid down. Also you can always pull out a line of credit against buildings that have a strong equity balance if you need to tap it for liquidity. 

@Brenna Wood Congrats on your first rental property. From the reading it sounds like you will be moving to another location and renting out this house. We did that as well when my wife and I started our real estate journey. 

1) If she is signing a longer lease, I would actually increase the rent slightly and say that you will not have to worry about us raising the rents every year and that it will actually be give you and her a more predicable situation as she wont have to worry about her rent being raise in a year and her having to find a new place. 

2) Personally one of the hardest things to do when we turned our primary into a rental was to let go of the idea that its "our home" and its now a business. So the faster we removed our personal feelings from the house the better we were as then we could treat it as a business instead of a house our family lived in. This prevented us from over improving for a place that "we were" living in vs a rental. So personally I would advice to build some new memories at your new spot. 

3) Talk with the tenant as much as you can to understand her/his personality and what they will be like. This will give you an idea of how much involvement you will be expecting once they rent. Are they complainers, do they know how to fix things, are they clean or messy. etc. things that a credit report and pay stubs really don't tell you. 

Hopefully that helps.

Cheers. 

hello, I am flying out to Indianapolis in two weeks and would like to get a few property manager recommendations, for companies that deal with SFH and small multi units in A/B/C areas. Looking for smaller shops that have really good communications and handy man on staff.

Please let me know if you can refer anyone as we are in the process of setting up our ground team out in Indianapolis and are looking for a good property manager, and deal flow source. 

Cheers and thanks in advance. 

@Ian Middleton , I currently work a 9-5 and have a family to support as well. So I totally understand the "apprehension" when you first start. My word of advice is that you already have done the "numbers" a thousand times over in your head. Now its about execution. The grand entrance will be scary , messy and may or may not make you money, but boy will you learn and grow. The faster you do it the earlier you will decide if its right for you. The main thing I would say is make sure that you have good folks to help keep you motivated and focused along the journey as there will be bumps and times when you think why the heck am I doing this for such a small dollar amount. But when I have those moments of doubt, I look around my office at all the folks that if they lost their W2 income they would be truly hurting and will most likely be doing the same thing they are doing 5-10 years from now. While in 5 years I have built up a passive income stream from over 30 doors now while maintaining the W2 income as "reserves" and allowing me to take bets that I won't feel comfortable with if I were doing this full time. Ian, keep at it and you will find the success you defined . 

@Christina J. I am currently buying my buy and holds in Sacramento, CA market and also in Minneapolis, MN. I like these place for stabilized cash flows . I have started to looking into Memphis, but don't have local boots on the ground their to help me understand the market yet. 

I am looking for some advice about what to do. I would like to sell a rental property that has appreciated from 108,000 to around 295,000. It currently rents for 1,250 monthly and has no loan on it. Its in northern california and I would like to stay local if possible. 

However, looking around the market, I don't see much opportunity currently to deploy the assets into a 1031 exchange that would give me similar yields on my original investment. However I would like to take some risk off the table as the housing prices have moved beyond their all time high, but I don't want to pay the tax man yet. Any advice on how to reduce the risk while not getting hit with taxes, beyond the standard 1031 exchange?