All Forum Posts by: Finny Chacko

Sean, Did you buy the properties from a TK or from MLS? Because I am looking to get in Memphis market. Thank you.

True, But 30-40% of the houses that are selling in DFW under 200k is buying by an investor. I don’t have the statistics for this but I checked with multiple Agents. And most of the buyers are out of state and they don’t even follow 1% rule and may be they get .8 to 1%. I don’t think they are vying for cash flow, I personally believe the DFW market is going to go up for few more years at least by 5-6% average. Again it is just my opinion based on the current job growth and population growth and it can change anytime of something happens.

Hi Preston, if you look at the Cash Flow only, this might not be good deal but if you are 100% sure it will appreciate in coming years and do a 1031 exchange, then you might think again. if you are not interested in this deal can you PM me the info, I might be interested in it. Thank you.

You have to give 60 Days notice to increase the rents to Section 8 and also to the tenant. You can ask what ever you want but they go with the Fair Market Rent for each Zipcode. Also you cannot ask to increase the rent more than once a year here in Dallas and 6 months in certain areas. Once you submit the request they will notify you by email or mail that they have accepted or not and If they have accepted, how much.

Originally posted by @Caleb Heimsoth:

Well let’s do some “back of the envelope” math and see if I can beat that 120k annual cash flow with 2M.

I would go out and buy a bunch of houses in cash. Let’s say I can get a 75k house that cash flows at 400 a month. I think that’s relatively conservative. 2M divided by 75k is essentially 27. 27 times 400 is 130k.

So basically it comes down to if that 120k is guaranteed or not. My gut tells me I could do better with the 2M cash

I dont know about you, for me it is a hard task to find 400 dollar cash flowing property for 75k in C+ B- areas. But with the Cash, Can we trust the index funds on a certain percentage to make sure we get as a passive income?   

Originally posted by @Josh Dillingham:

if that 2 million cash is after taxes I would take that.  even if your goal is cash flow the 2 million will likely give you better cash flow than $120K a year.

lets say you invested $2 million in an s&p 500 index fund and you got an 6% that would be $120k right there.

you could loan that money out as a hard money lender at 12% and get $240K a year

 Yeah that would make sense, But as a Hard money lender, dont you have to work? or put your time in it?  

 Thank you, I have not seen that. Looks like it is kind of exact same Questions/Calculations

Hi Guys, Would you take 2 Million Cash or 120K/Year Passive Income for Retirement?? And Why? I personally prefer Cash flow because then I can retire early? What do you guys think?

LOL, Looks like you don’t have any value to add in this community and don’t need anyone’s suggestions. You got a deal, good for you and stop bragging about it. Since you are not giving the address, I doubt you got any deal. Spend some time working on yourself and stop wasting others time.

It is going to be tough to cash flow anywhere in Dallas now. But I believe it is going to continue appreciate at-least for next few years. With 250k, you can easily get a 4 bedroom house in a good neighborhood but the question is how do we get a cash flow with that kind of purchase?