All Forum Posts by: Michael Bracken

If you paid more in taxes but got a better return/more money, would you do it? Consult your CPA. Sounds like your on the right path!

I would say better to have individual components. Much cheaper and standardized equipment on the whole. Nothing will make your tenants want to move like running out of hot water. Plus they will need to be repaired/replaced at various times not all at once with a major expence.

One thing you want to consider with whole life coverage is, who do you need to be a beneficiary when your 80 years old. If your children are 40 or 50 do they need the payout?  

Yea, I do. If its short term money only. Yea. The HELOC is the way to go. I was really looking at a long term strategy for the refi. Your great!

If your starting out, do something close to home. Yes, you can find better deals elsewhere, but as a new investor you don't want the added complexity of a long distance investment. Imagine, you can run across town or even the county and slap a lock on a door in an emergency. Even if your first 3 deals only broke even, how much experience would you have gained? Then go out of town for the better deal. I'm sure with all the help from BP you can do better than break even!

If you see the refi cash out as needing to be paid back with rental income then go with the HELOC.

My humble opinion is that cash flow alone or almost ever wont make you wealthy. It can make you financially free but of course those are separate objectives. It would take like #60 3/2 rent houses to replace my day job income. The equity from appreciation is where the wealth comes from in the future. So if your starting out like me, I would go for more higher leveraged properties. Roll the closing cost into the refi take the $100 or $200 a month cash flow and don't consider the lost cash flow paying back the refi. Its a positive cash flowing prop in your portfolio and your ready for the next.

I think you can be successful ether way really. There is no one way. Sounds like your doing great already.

Sounds like you got the right instincts. Beware the empty lots!

@David Yuhaz Just get you handy man to repaint the cabinets, put in some patch repair work where needed. And if you really want to go pro... buy some new cabinet hardware. Door handles and the like. No need to replace in a rental. They will be good as new for $200. 

If you want to sell, then new cabinets probably. But not siding. Pull up a list of what adds value to a home. Front door and kitchen cabinets top the list but not siding. You wont make your money back. In my humble opinion, of which I am full of. : )