All Forum Posts by: Ed Matson

@Antowayne Watson - And in my area, it is hard to make SFH numbers come close to those of MF. Plus, I like the diversification, MF gives you. IN SF, you are either 100% occupied or 100% vacant. With a three family in our area you can break even with one vacancy. So, for me, I want the most units possible while still maintaining a decent tenant quality.

I have no opinion on Wyoming LLC's. I chose to establish an LLC in the state I do business. This plus appropriate insurance affords me the asset protection I believe I need.

@Taylor Smith - definitely consult your tax advisor. For my rentals I chose an LLC with the default filing status and did not choose to file as an S or C Corp. This way I get LLC asset protection and because the business is "passive" real estate (rentals) I need not pay salaries and self employment taxes. Income passes thru at individual tax rates and you get Business expense deductions.

A lot of it will depend on what business activities you will do, i.e. buy and hold rentals vs. flipping.

Not “urgent” income.  Rather “current” income.

Hi, Ihave several condos that cash flow well.  My decisions are primarily based on cash flow expectations to generate urgent income. I see nothing appealing in purchasing a break even asset at today’s high market prices, especially in an asset class (condos) that is more price volatile in down market periods.  To me this is not investing but rather speculating, and speculating in an asset that is going to take time and attention.  How would such an investment get you closer to your goals?  

@Troy Hebert - Regarding your vacancy question in the event of a reoccurrence of 2009. Our Class B apartments outside of Portland OR experienced approximately a 4% reduction in rental income during that time. Vacancies increased very slightly, but we had to make rental concessions to keep occupancy high. Our rents have historically been just a little below market to achieve high occupancy and low turnover.  Our normal vacancy rate is 2-3%. Your positioning in B/C should help you weather that storm.  You note that the current vacancy rate is 7%.  That seems very high for today's market and for Stamford. In New Haven and the Valley we have not experienced any real economic vacancy loss in the past two years with several B-/C+ properties. Sop, I wonder why this portfolio is at 7%.  Rents too high for market?  Lax property management?

@Justin Johnson - The Book on Managing Rental Properties by Brandon and Heather Turner.  Available on BP, along with several other very good books.  If you are new to land lording - read this and benefit from Brandon's mistakes! It has really helped me.

Also, I don’tlook At SF homes (owner occupied) as an investment, but rather an expense. 

Have to agree with @Nathan Gesner  A triplex or quad house hack will both provide you with your own place to live and either an income stream or “free rent”.  Either way, its a great way to build wealth.  Also, interest rates are increasing, so if I had the opportunity to get a good multi now I would jump on it. Locking i long term fixed rates today will seem like a real bargain in a few years.  (My first mortgage loan was 14% fixed so today money is still on sale).  You can always buy a SF for yourself down the road and then have the multi help pay for it.