All Forum Posts by: Fred Cannon

@Najeh Davenport so you paid cash but you still have the heloc to pay. Not sure what you gain or how you exit the heloc without selling the property you paid cash for. Hopefully your rent will cover all the rental home expenses and pay the heloc mortgage. Your only exit is to use all your excess money to pay off the heloc or hold the rental and hope it will increase in value enough to sell and pay off your heloc. I think you are looking at 5 years to exit.

@Fred Cannon reading thru these post I see a lot of people poo poo buying with cash. Buying with cash doesn't mean saving your money under your mattress until you have enough to pay cash for a rental property. It means investing other ways such as stock market, etc. the stock market does well in the long run, I put my money in stable mutual funds primarily then if I find a property to invest in that I think will pay me back then I buy it. You can pay your interest rate, pay you taxes, pay your insurance, pay your upkeep, pay your mortgage and hope there is enough left over that you can get xx per door per month. Thats a lot going on, lot of stress, lot of hope. I like the cash method for RE it's peace of mind. The RE market goes up and down, its timing the buy more that any other factor. A lot of people lost millions in the last RE market crash because they were using leverage, some people made millions in the last RE market crash because they had money waiting to purchase. To each their own.

@Eric Justice I have 6 properties that I paid all cash for. Having no mortgage makes for peace of mind when the property sets empty, my rule of thumb use to be the 1% rule. Monthly rent equals 1% of buying price but with the explosion of housing prices that is impossible now. I haven't bought since 2015 just living in retirement collecting rent.

@Caleb Scott the cost of buying and selling over a 2 year period plus any renovations would more than likely negate any gain in appreciation. If you held on to it and rented out after your move, looks like negative cash flow with mortgage and maintenance. Personally I don't see that as a good investment for such a short term. If you could find a duplex or triplex maybe. Don't believe that rental property is passive income!!

@Irvin Nguyen you don't really need a property manager for one rental unit. Managing it yourself is a great way to learn about real estate investing. Maybe when you get to 5 or 6 it would be time to hire a PM. I prefer to hire my own contractors and deal directly with my tenants. But that's just me.

@Mohammad Haidarasl well you got to live somewhere, but yourself a duplex and rent out the other unit. Use the rental income to pay down the loan. If it all goes well in a couple of years start adding to your rental investment property holdings. Don't get so far into debt that it becomes stressful, just not worth it. I have 7 homes now and no mortgages. It doesn't happen over night, just have patience and push forward with your plan.

@Abass Sheikh yes start the eviction but be sure to follow your state and local laws, use an eviction attorney and get those people out of your house. Even if they come up with the rent do not renew the lease. But be nice to them in the mean time. If the Ex is so concerned why does he pay you, would be my answer to him.

@Jack B.sounds very reasonable to me if he is using quality paint. Paint is very expensive now, so two coats will be a lot of paint. I recently did some painting in my personal house and paid over $60 per gallon for Sherwin Williams top quality paint. When

I paint my rentals I always do the ceilings as well. Really makes a difference, especially if they are popcorn. Also I have gone to doing white on white. Easy to touch up and no second coats required. Looks so much cleaner as well

@Theresa Harris no true in every state. Florida has a surplus of billions of dollars because we entice people with common sense and low taxes. But don't come here, we have too many moving in every week.

@Jim Kelly I have six properties and I self manage. It is not that difficult in retirement. I have a mix of midterm (3 month minimum fully furnished) and 12 month . All my units are 1 bedroom condos and the maintenance is mostly covered with the HOA fees. I use different specific companies for cleaning, repairs, and AC plus have a handyman for small issues. I save @ $2000 a month for the inconvenience of self management. I just find the hands on approach to my property is the best option for me. If I had 10 properties I might use a manager but 6 in retirement is perfect. I recently sold a rental house and believe me that one house required as much work on my part and upkeep of the properties as the six condos combined.