All Forum Posts by: Dylan H.

@Jacob Fafard

Savannah has tons of opportunity. Definitely need to know the area though, you can cross a street and be looking at extremely different values and levels of safety. It’s also getting hit pretty bad by Covid-19, simply because a lot of the historic district is STVR’s and student rentals. Depends what you’re looking for as far as current opportunity goes. I don’t think the flipping in Savannah will slow down anytime soon. It’s an extremely competitive market with lots of active investors, but what good market isn’t competitive?

Best of luck

Thanks for the update and sharing your numbers @William Allen! Have you guys changed your message at all on your mailings? Would you recommend something tailored to current events? Either way, your numbers will motivate me through this months round of hand written letters. Thanks!

@Sylvia B. Definitely happy to assume responsibility for a mortgage and the risks it involves. Foreclosure, credit impacts, etc. But you’re saying it’s a lie that tenants pay peoples mortgages on investment properties? Do you know what the 1% rule is? The majority of what you’re saying has little distance between a leverage and non leveraged property. If you don’t pay property taxes, you’ll lose your property just as well. So I guess we just shouldn’t invest in real estate, it’s risky and there’s a chance in losing it? A person with or without a mortgage on a investment property are in the Exact same situation if they have the exact same amount of expense reserves(percentage wise of all expenses with or without a mortgage) as far as risk goes.

You said not to spread “lies”, and you’re saying paid off properties are “king.” Can you not admit that’s an opinion of yours and not a fact? If you can’t do that I’d highly recommend you broaden your horizons. Maybe read Tax Free Wealth by Tom Wheelright, and listen to a few podcasts about “growth mindset” on Get Rich Education. I can DM you some specific episodes if you’re interested.

@Sylvia B. Ummm that's not quite how it works. My tenant pays that interest & equity. I'd be happy to show the COC ROI differences between a leveraged and unleveraged investment.

Everybody has their own tactics, not saying yours are wrong. Depends on your risk tolerance.

@Marcus Johnson I think the Dave Ramsey mindset is detrimental to younger investors, it's a limiting mindset instead of a growth mindset. Like @Jay Hinrichs was saying, it's quite difficult to grow at any decent rate without leverage, especially when starting out. But I also agree that Dave is great for people that have no financial education or wherewithal, especially on the consumer debt topic, I don't know many people that would disagree with that. But ultimately it all comes down to not being over-leveraged and having plenty cash reserves.

If you own a free and clear property with 6 months of expenses in reserves, and I own a leveraged property with 6 months of expenses (yes, including my mortgage) in reserves, then we are just as prepared for something like this. Except I get great tax advantages with my mortgage and can own more property and diversify. But I am young and more aggressive, and I'm sure I'll change over time as well. To each his own.

This should be yet another lesson of how important it is to have cash reserves on hand. Whether you’re a landlord, business owner, or average joe working class citizen living in C or D class properties. If you don’t have 6 months of All expenses of all of your business endeavors, you’re wrong, plain and simple. Cashflow might be king, but cash is queen. My opinion, whether you agree with it or not, if you can’t weather this storm as a landlord or business owner, it’s on you, take ownership, quit blaming others, you should be prepared.

Financial illiteracy is THE biggest issue of our countries school system, and it affects everyone from D to A class tenants. I see some people posting on this thread that A class tenants should be “better prepared” for this. Ha, we live in a spend what you make society. People are not living below their means and preparing for something like this, most people aren’t even living at their means, they’re living above them. And that’s the problem here.

Congratulations @Tyler Caglia! Looks like you’re doing great things and it’s inspirational!

Just wondering and kind of a question for everyone, why do people show their cashflow without including Vacancy, CapEx, and Maintenance? Is it to make the numbers just look better, or because they are kind of hard to know for a new market? I see turnkey companies all doing this, seemingly to inflate projected returns. I can see making CapEx lower for a newly rehabbed property, but why not estimate and include vacancy and maintenance?

@Alyssa McEwan Yeahhh you only get 5 uses unless you upgrade to pro, where is unlimited and you can download the pdf versions. That being said it’s pretty easy to create an excel spreadsheet that does the same thing, it just isn’t as aesthetically pleasing.

@Chandler Miguelgorry If you're possibly meaning that you're planning on using conventional/FHA/VA/USDA loan for a house hack or to get into a property to house hack or live for a year to use the lower barrier to entry? If that's the case then there's no need to mention it's for an "investment". The loan docs will state that your intent is to reside in the property for at least a year, and you'll sign agreeing to that. As long as you are planning on occupying for the required time then flipping it to an investment, I think that's a great strategy.

Definitely would not recommend or approve of ethically purchasing a property using one of those loan vehicles for an investment. I know some people do and that’s fraud.

@Alyssa McEwan I’m in basically your exact same position. I set all sorts of alerts for properties that I’d like to invest in on Zillow and practice underwriting those with the BP calc’s if they pass the initial “sniff” test. Also would recommend joining an investor’s Facebook group in your desired market. My area has one and it’s great because wholesalers will post properties on there and you can get a good feel for the competition and a better view of your investment market.