All Forum Posts by: Frank Maratta

@Lore Postman

Out of curiosity which website do you use to find out if taxes are current?

@Henry Lazerow

I agree re: leverage. once the OP gets started he will realize the power of leverage and realize that the return seen on paying off a house is better spent acquiring the next deal with 25% down.

We all say, “I’ll buy this or that and pay it down sooner” but in reality once someone gets started, they get the bug, realize the power of leverage, and save up for the next deal instead. It just doesn’t happen.

Solution: take 15 or 20 year mortgages

@Derek Cespedes

No I would not take a deal for a 10% return. If you are talking cash-on-cash I am seeing over 20%. The last BRRR I did is at 15% and I haven't even refinanced yet

@Nicole Heasley

You mentioned $2k of repairs last year. What did those consist of?

@Josiah Sia

What is your main reason for choosing this plan over the typical leveraging strategies out there?

Here’s a thought somewhere in between - what if you took a note on each property , kept buying properties, but calculated the monthly payment amount to pay that property off at the end of 10 years. So property #1 bought in year 1 you would amortize over 10 years. Property #2 bought in year 2 you would amortize over 9.... ect. Your first properties would have the lowest monthly payment, and this works since your cash flow is at its lowest in the beginning. Your later properties may be amortized over 2-5 years (depending on when purchase), but your cash flow is also highest at this point. Using leverage like this would enable you to buy more deals quicker at the beginning and get your cash flow higher at the beginning, where you need it most. If you ran into a problem or needed a major repair, you could back off the 10 year amortization schedule for each house and just pay the regular 30 year amortization payment the bank requires.

Just an idea.

@Donte Handy

Get kwickset smartkey deadbolts/knobs. Best money I have ever spent, hands down. I can re-key a door in 5 seconds upon a tenant moving out. I am never going to buy a regular lock again. And in your case, you’ll never have to hire another locksmith.

@Sam Bromano

I am big on the BRRRR strategy but in this case I think I would sell. Great time to sell and you can buy two more properties, doubling your cash flow from $600 to $1200.

If you refi, what is the term on your loan 15, 20, 30? If it’s a 15 or 20 and even though it is cash flow negative but it’s still enough to cover a good majority of the principal you are paying down, it might be worth it to keep it - especially considering the fact that you could be at net 0 when you raise the rent.

Bottom line, now is a great time to sell, BUT are you confident in this market that you are going to find the two “deals” that cash flow $1200 combined with the money made from the sale? If the answer is “yes”, I say sell.

@Jim K.

I see what you are saying now. I didn’t realize cats peed in corners and on walls like that.

@Jim K.

So you would paint the studs with Killz? Just curious what painting the studs accomplishes? Unless I am missunderstanding.

@Robert Adams

Apartment buildings or smaller multis over single families. As someone else mentioned economies of scale. Even in a duplex, if you have a vacancy, you still have half the rents coming in, usually which can come close to covering the mortgage payment. With a SFH you would be on the hook for the whole payment.