All Forum Posts by: Eric G.

I think a few people have touched on the concept but overall I am obsessed with travel cards and their benefits, here is why...

My History with cards

I love to travel, and better yet, I love to get the most value for my money. I have a few long standing credit cards that I will never get rid of and keeps my credit length and card balances (to limit) in great standing. However, every year I get a new card based on what incentives are offered. My first card was through Navy Federal who offered 50,000 points if you spent $2,500 in 90 days (2015). My second card was the Chase Sapphire that offered 50,000 points if you spend $4,000 in 90 days (2016) The 87$ first year fee was waived. More recently, I acquired the United Airlines card who offered the 50,000 points after $3,000 in spending (2017). 

How to maximize the benefits

1. Treat all of those cards as "charge cards" and pay them off within 30 days without interest. 
2. Find out which "travel partners" (places to transfer your points) have the best benefits. Some partners or airlines give you more bang for your buck if you transfer the points. (I love United).
3. Don't forget to cancel the card if a "First year annual fee" is waived" before it renews the following year. Two of my three cards waived the first year with no penalty if you cancel early. As long as you have an older credit history with longer standing accounts, this will not affect your credit history. Well, mine isn't affected. 

My airline tickets with points compared to cash back.

1. 2015 - Round trip ticket to Greece (30,000 points each way). I think I paid around $100 out of pocket. Cash back probably would have given me $500-$600 (September)
2. 2016 - Round trip ticket to Italy (30,000 points each way). Paid around the same as $100 out of pocket. Cash back would have been around $500-$600 (June)
3. 2017 Round trip ticket to Austria (25,000 one way, 30,000 another way) Paid around 40$ out of pocket. Same scenario with cash back. (August)

It really just depends on what value you're looking for. Those flights would have probably cost anywhere from 900-1100 depending on the time of the year. I feel I win that battle.  I'm easily going to spend what these cards require to receive points on incentives so I see it as a free flight, every time. 

David Fernandez If you’re ever interested in exploring the crime trends/upticks in the specific neighborhoods you’re talking about I would love to discuss. That’s what I do for a living and I think it’s really beneficial to investors. It seems like you really try to do your due diligence in B-more. -Eric

My realtor is a creative genius. He’s a full time investor (with a license) but typically only works with colleagues who are also investors. Using him was the best decision I’ve ever made as a newbie because he does full gut jobs for a living and knows every little in and of of Baltimore tow homes. He can walk into a house in Baltimore and point out even the slightest details for the good and the bad. I can forward you his information but I would have to give him a heads up that you’re calling. Just let me know.

Hi @Ellie Narie

    The idea of solely renting Air Bnb makes me nervous because jurisdictions are starting to present legislation that would really hurt landlords. For example, the Baltimore City Council is trying to pass a bill to raise taxes and essentially apply a 9.5% "Hotel Tax" for Air Bnb hosts. I can see this starting to spread around the country because hotels are getting crushed. However, a good friend of mine rents out a room in her house through that platform. We are close to Johns Hopkins and she typically gets long(er) term guests that are spending time at the Hospital or University. She pays a cleaning company 75$ per week and typically does the laundry herself. I think your best bet would be to require a minimum stay (probably at least 3 days) to make it worth it to pay a cleaning company for every guest. I've heard this ranges anywhere from 45-85$ depending on the size and what agreement you have.

Best of luck,

Eric  

Also, take a look at this article.

http://www.baltimoresun.com/news/maryland/politics/bs-md-ci-airbnb-rules-proposal-20180205-story.html

Hi @Christian Wathne

       I think it really depends. Are you local? Can you stop by the property to check in every now and then (and or) have someone who can do that in your absence? My lease has a clause that requires my tenant to notify me if they will be absent for more than 2 weeks at a time. I live local so it's not an issue with me but I can see how it might be risky for an absentee landlord. However, look at the bright side... zero wear and tear on your fully rented AND paid for property. I would be all for it within reason.

@Gregory Hatcher

What do you have a background in? If it's any type of construction maybe you can network your way into finding a joint venture with someone who is willing to put up more cash if you are willing to renovate (sweat equity). There are a lot of ways to construct deals but maybe, for now, you should save up the extra cash and attend meetups for networking purposes. If your job merely covers your "day to day" expenses, how about monetizing your car like driving for uber until you have enough for a downpayment? No, it's not easy but it sounds like you're going to have to hustle.

Best of luck,

Eric

Originally posted by @Brian Ploszay:

My advice to you is to stick to your market. New Jersey is a dense, compact place. You can better watch over your properties. And somewhat of a wealthy state. I guess Baltimore might be cheaper. If you go further inland, you run into economically depressed areas. Your ROI is higher as long as you can keep the units rented.

 Brian is correct in that Baltimore is cheaper. However, if you're not from here or living here you REALLY need to do your homework. There are a substantial amount of factors that go into this place a side from the regular numbers. If you do decide to look into this market feel free to reach out. 

Well, if he was indicted for Murder and has a lot of felony priors... AND violated the terms of his bail..... he's probably not coming back so I guess you're just stuck with Tammy.

My biggest fear is miscalculating the numbers on something that may look like a good deal due to something I am not aware of.

Welcome @Travis Junge

I totally understand how you feel. I purchased my first property last year but i've been following the real estate trends for a while. I am an Army Veteran and was eligible for a VA loan just like you (most likely) will be. I think your first step might be to talk to a realtor, especially VA/Military friendly one. I think it's important that you spoke about the numbers and calculations because most of this profession/career/hobby is a numbers game. I think you should probably start by searching for one of the podcasts that might be geared towards VA loans. There happens to be a WEALTH of knowledge on every inch of this site.

Best of luck,

Eric