All Forum Posts by: Account Closed

You can use the BP calculator to show both COC and ROI. I like the IRR with expected lengths of time for the property. Note: I am only a buy and hold investor so I don't flip or wholesale. I am more concerned with my IRR than both my CoC or ROI. They all matter but for my specific situation they don't mean much to me today.

pick a coc that works for you, I shot for the highest I can, but i am playing the long game. If you need money monthly shot for a higher coc.  

 3 bedrooms and 766 sq feet?!?!?

what is the property currently rented out?

Would this be a cash deal and then refinance later or do you need financing upfront if so is it in a condition that is something that you could get financing for?

 You said car loan and student loans.  Now unless you bought too much car for your salary I’d say invest in real estate. 

You have what i would consider “normal” debt. Unless your student loans are so monumental that one broken furnace in a rental will make you pick between paying your bills or fixing the unit.  

If I had waited until I was debt free before buying my first rental I wouldn’t be here today. Debt happens just be responsible about it.  Keep your credit cards paid off monthly and don’t over extend yourself for a vehicle.  

Just like someone else said. Make your real estate investments pay off your debt as you move along.  I’ve looked at rentals as oh look these 10 rentals will pay for my car payment, insurance, and gas monthly for the rest of my life.  Do that until you don’t have to pay for bills with your paycheck and wham your financially free.  

 Others said it as well but renting to a friend is never a good idea.  

I won’t get into the political legality of weed. And someone that smokes weed is not necessarily bad.  However, in the military one is expected to hold to a higher standard. I’d be more concerned with her as a friend than a tenant.  Only for the simple fact that the military has their own rules.  The commander can do as they want when it comes to applying punishment.  

I’d ask yourself. 

Are you in a job that requires a clearance?
Does your friend ever smoke around you?  
Do you smoke?? Regardless of the CO law it’s still against the UCMJ it’s not like Germany 1994 where drinking age was less than 21 so the 18 year old private could drink legally.

Is having them as a friend worth risking your career over?

all that being said don’t rent to a friend.  It’s the quickest way to losing money and a friend.

 I have kids and we talk (well I talk and they eye roll) often about how to use your age to your advantage.  Can’t stop time so starting early is the fastest way to get there.  

If I had to break it down to a step by step process I’d advise the following. 

1. Go to school to good paying job that allows for growth without working more than 60 hours a week.  (College isn’t school for everyone). But a marketable skill.  
2. Buy a house while in college and househack it. My goal (direction I’m teaching them) for my kids is to have purchased 3 properties while in college each. 
3. Graduate and buy a home that can househack and take all savings for down payments of investment properties of 5 units and more.  

In 5-15 years which is really a short time they would be worth over a million and have cash flow to pay for their life.  

I’m older and my strategy is to buy as many 10 unit and larger multi families as fast as possible.  I already have a higher income and want to use that money to create longer term wealth.  
there really isn’t a wrong answer to the question.  

 I’m a landlord and a Florida landlord at that.  No money, no keys or possession equals no lease.  Just tell them sorry they failed to provide the rent and deposit and their lease is invalid.  

You have no recourse and they have no recourse.  Good luck

 You made a bad business decision and it cost you some money.  You have zero recourse to collect money from them in a normal time and certainly not in this time of the virus pandemic. 

 Move on.  Re-list the property.  It isn’t their property until they paid deposit and rent.  Until then it’s a piece of paper that means nothing. 

I recommend that you take the First Last and security deposit at the lease signing going forward.  That is a normal practice and I am also in Florida. 

I think only time will tell for this   

The same could be said about any asset class at this time.

The investors that come out of this (if it goes on for a extended period of time) will be the ones with proper reserves and the ability to adjust to the situation.

 I applied a while ago. However, my loses at the time were zero. Not so much now.