All Forum Posts by: Elisha Keller

@Aly W. -reserves are not something my boyfriend and I started planning for until we started reading BP. We thought have down payment, purchase a multifamily and tah-dah your in real estate. It wasn't until I really started researching (and thinking) that I realized how important reserves are. Since we will be OO for our first property we want to have $1500-2000 to start out as a reserve. We will add to that amount monthly, and do our best to never drop below $4000-$5000.

I also understand where you're coming from with Section 8. It's something we haven't set in stone if we will/won't go that route. But I appreciate your insight.

This is really helpful everyone. You all have great points--some that I've already considered but not from the point of view that you see them. Please keep the input coming!

@Paul Timmins -that's a good bit to consider. I honestly never thought about that. But a very common theme in my research is picking a good tenant but I never thought about it quite the way your phrased it. Very interesting!

@Mark Graffagnino -thinking with an end market/customer in mind is a very smart piece of advice as well. I've been throwing the idea of Section 8 around eventually; however, I'm not into rehabbing right now. But it is something I would consider down the line. It's also good to keep in mind when purchasing any property--make it nice and appealing but not above and beyond for a market that won't support it's worth.

@Engelo Rumora

I absolutely agree! I'm a hands on learner but I want to make sure I have 3.5%-5% first because I'll be using an FHA loan to purchase. So that's why I'm in a waiting pattern right now--want to make sure I have money saved for the down payment as well as a little extra cash in case an emergency happens.

@Duncan Banks

I'm looking into multifamily units in my area for my first purchase. I'm always concerned when I see a property that is being sold with occupants and I always wonder why? Sometimes I think it's life change (maybe downsizing, retiring to another state, etc.) Other times I think maybe it's a job loss, maybe they took out other loans, kids in college. The possibilities are endless. I'm definitely going to get an inspection when I decide on a property because I think that will ease some of my uneasiness about the "why". Good luck to you!

@Engelo Rumora

Thanks, that's very good advice. Since I have about 3-6 months before I'm ready to purchase my first property it's giving me a lot of time to really think about what I want. I've been able to set my price ($130,000), not a major fixer upper (some cosmetic stuff is fine, but not a total rehab), a yard is a must, 2-4 units.

I think having time to really think about what's important (and necessary for me) will definitely help me not rush in. I'm normally a do first then ask questions later but with real estate I'm REALLY trying to have a plan, be practical and as you said "being patient"!

@Douglas Graham

I'm working on my first rental property so this is not personal experience, it's strictly what I've read in books and here on BP. Rent minus mortgage doesn't equal cash flow. You also have to take into account for taxes, maintaining the property, advertising (to fill vacancies), emergency fund (for when something breaks). All of these should be factored into your monthly expense. So you should do Rent-expenses (which include mortgage)=cash flow.

I just didn't want you to see the $500 and then find yourself confused about where your $500 cash flow went. GOOD LUCK!

@Chris Piper

Thanks for the feedback. I've seen several stories that have explained those cons. The only one I'm not to worried out is taxes right now, only because I'll be an OO at first. But, thank you for the information!

As I've been on BP I've been reading as much as possible--even the ones that sounded scary. I want to learn the worst things about being a landlord as well as the positives. The question for the day:

What was your number one mistake with your first property? What was something you've done right since your first property?

@Brandi Brockman

That sounds awesome! If we can get a meeting together with other Philadelphia members that would be awesome!

@Andresa Rosa
Hi! I looked over the pictures and the remodel looks wonderful. I can tell you guys have an eye for a "good bones" with a house. The house definitely had a lot of potential that I think other people would have had a hard time seeing.
I have a student mentality because I realize that this isn't a business that you can (should) jump into without some research.
How do you like working with your husband? What are some of the positives/negatives? I'm really interested in the partnership because my boyfriend and I will be doing the same thing.