All Forum Posts by: Fred Cannon

@Blake Jones I do one month deposit plus 1st month rent to move in. I break my deposit up and part of it is admin and cleaning and is none refundable. For example. Rent is $1050. Deposit is $800 refundable and $250 non refundable.

@Matt Burr no such thing as a triplex for $75K in Florida Can’t compete with a deal like that.

@Steve Orluski I like a 30 year mortgage less that 5%. I am currently looking to close at 4.5% on a 143k property with 30% down and rents for $1250 a month my cash flow should be around $350 to $400 a month plus mortgage pay down on a $43k plus closing down payment. Not great but something I would do over and over This is a turnkey property

@Matt Burr just curious how much value do you put on time. Time and effort is a valuable asset that we give up to manage our properties. I look for a 10% return plus @ $300 a month cash at the end of the month to make it worth time and effort. My sweet spot is around $150-$175k property with 30% down. I try to do turnkey. There is a nice market in this range

And good tenants willing to pay up to $1500 a month if the location is good. Appreciation is just icing on the cake. I do count mortgage pay down as part of my $300 a month because that is just like putting money into savings. That’s my formula.

@Dontrea Riser. In my deals I look for ROI of 10% or greater. I generally buy turnkey properties that I hope wont have a lot of capX I like putting 30% down as a general rule and want to cash flow 10% off of the down payment After 5 years I list FSBO and keep on rolling with a 1031. I add one additional property every year or two and only have one listed for sale at a time. At this moment I have 8 properties that I self manage This has been a 10 year journey so far. I still work a full time job so this started out as a long term strategy and more or less a hobby. Now it is becoming a very good retirement plan and a monster at the same time. I have to keep feeding the beast (time and money) to keep it alive.

@Al Pat. Most of my leads come in the last two weeks of the month so I do Zillow go those weeks. I list on Facebook market place and get a lot of activity from the younger renters. Saying thT only around 1/3 of responders actually will show up. I do Craigslist but not much luck there. I usually have a new tenant within a month. I would gladly pay someone $40 if they brought me a tenant so why not pay Zillow for one month. It really is a great site that works.

@Morgan Madill. My properties all cash flow much better that savings accounts. I believe that you need diversity so I have money in Stocks and in real estate. Only enough in saving to cover cap ex and repairs. Have a partner as well. There will always be risk in any investment, but right now your savings are paying you less than inflation. I consider that worst that risk. Find a friend to partner with and find a deal that makes you money. Look for a niche that you are comfortable with. For me it's one bedroom condos in nice complexes and low HOA fees. If you lose some money it's not the end of the world. You are losing buying power everyday now. After expenses I want to make @ 10%. That doesn't include appreciation or tax benefits. That type of deal is not hard to find but you have to put some skin in the game. I.e. money down and closing cost. You can be a player or a spectator, your choice.

@Whitney Bowling. Looks like you are betting on appreciation to bring your goals. Appreciation in this Market now is long term but the good thing about your game plan is low money in for appreciation on higher end properties. If you can go 10-15 years without any major setbacks I think you will get a great return I like to roll my properties every 5 years or so with 30-40% down. Sell one buy 2 that needs TLC. Get cash flow To live on and forced equity to reinvest plus makes my retirement not so boring and still have time to fish This is a tight market with a lot of flippers and wholesalers. I think the class A properties are great investments for youngsters like yourself as long as you have protection of equity as part of your backup plan You are not going to get any cash flow because 1 month empty is probably a years cash flow and one fridge is probably 4 months of negative income. Don’t give up your day job just yet. Best of luck.

8% after all expenses 

I have a few rental condos that are mortgage free. I would like to get cash out with a heloc to buy other properties. Has anyone had experience with heloc loans on condos. I haven’t reached out to my bank yet, at this point just curious about the possibilities