All Forum Posts by: Edward Burke

@Nawzad Babiry

Some of these deals are so good I now feel awful about myself! I can't understand how people found $7K deals that rent for $600/month...super jealous and scratching my head at those tenants. Great work everyone!!!

My best = $170K purchase, with $3.4K seller credits (2% to cover prepaids). Rents were all $450 each x 4 (four family). Now rents are all $700, or $2,800/ month. Roughly 1.7% of purchase price. 2 years later it's appraising at $260K.

Most of my portfolio is around 1.3-1.4% of purchase price 2 years later. However, demand has been so strong for four Family Properties in the area that appreciation has been fantastic.

I like the equity growth and I've had very little repairs and generate 20%+ CoC returns.

@Rick Birkey I have 8 four Family Properties managed by Radius Realty and like them very much. Tell Chris Long (the owner) I sent you. 😁

@Ashley Rogers - I would sell and put that money into a small multifamily property. You should clear about $110K after paying commissions and closing costs. That would give you enough for 25% down on $440K in property. Depending on where you invest, that should give you gross rental income of $4,000-$5,000/month. P&I will be about $1,750/month (you'll have to add tax and insurance). As you can see, you have much greater margin for expenses. Further, your getting more principle reduction (essentially a long term savings account created by your tenants) and any appreciation will be much greater given the larger asset base.

This is what I've done whenever I've sold something (buy bigger, and ideally even decrease risk - i.e. higher margin).

@Michael Fundaro - Absolutely! Surf, and lots of Southeast Asia travel. Will follow my investments and hopefully continue to grow the portfolio from afar. :) 

@Erik Whiting 🙌🙌🙌

Couldn't agree more! Very well said.

For me more specifically, it was watching my parents scrape by, follow the cookie cutter approach and save for retirement just to get sick and pass away within a few years of retirement.

There is so much more to life than the corporate grind. I let myself get sucked in for 14 years working 60-70 hours a week and sacrificing time with family.

Through real estate, I've given myself freedom that I didn't have. I'll be leaving my lucrative job in 6 months and moving to Bali for a couple years. I'm able to do this because of my investments. I want to show my children the world through travel, connect deeply with my family without the constant stress of work expectations in the back of my mind, and have direct control of my destiny. I want my children to understand there is more to the world than our suburban bubble. I love that I will pass on a real estate empire that will benefit generations while being able to provide this opportunity to my family.

@Ani Kap I wouldn't work with a broker. It probably doesn't make sense to him given the amount and there will be origination/brokerage fees. You can do much better working directly with a bank. After years of shopping rates, I have a fantastic lender that I work with exclusively (happy to share over DM).

My current rates are 4.625% for 4 family properties with no points...full 30 year amortization. I have to put 25% down, but they can do 20% for SFR.

I've cultivated a solid relationship, and met with everyone in the office when I happened to be in the state of my lender as I knew I wanted to work with them long term. The team will now go above and beyond to help, and I can close in two weeks if I need to (although I've only asked this favor once). My only regret is I've reached my 10 loan cap...trying to work on getting loans under my wife but she currently is stay at home. Ditch the broker!

@Chris Nerio Have you explored conventional loans? Currently, I'm getting 4.625% with 30 yr amort. All my investments are four family properties in the area. That will help the numbers.

Sorry...in regards to your other question, yes, I visited the area first. I made a couple trips, looked at tons of places, drove the neighborhoods, went to local restaurants, studied crime and census data, and asked local investors via BP.

@Michael K. Smith 

My favorite neighborhoods for investment are Southwest Gardens and North Hampton. Specifically, my North Hampton assets perform the best as the purchase price is much lower than Tower Grove South or Central West End, but the rents are not significantly lower. I do also have a property in Tower Grove south next to Grand Ave (lots of cool restaurants in walking distance)...doesn't perform as well as the others, but likely best suited for appreciation.

@Michael K. Smith - I live in San Diego and own 32 rental units (8 four family buildings) in St Louis. I highly recommend learning the specific neighborhoods before making any investments in the area. However, I'm a huge fan of the St Louis market. I would say that it's been hot lately (not making national news). Any good 4 fam lasts about 2 hours before receiving multiple offers...