All Forum Posts by: Gary Harrell

Derek,

I have a couple of ideas for you to consider. Take your gap year, but not for the reason you might think. If you happen to live near the UPS distribution hub, apply for a job there. It's a part time commitment. 3-5 hours a day, but it's also every weekday, so it is more consistent than a fast food type job. Plus, if you can manage to get yourself on the midnight shift, then you have a lot of those "office hours" that you can be looking around at real estate when other professionals playing in real estate are busy at other 9-5's. Plus, after 9 months at UPS, as just an hourly, you are eligible for full benefits. And one of those benefits is tuition reimbursement, to the tune of over $5K per year. We usually have very close connections with community colleges, but will contribute anywhere you want to pay your tuition. I am not certain what the wage pay rate would be out there for you, but I know it would be more than your minimum wage. Heck, if you can swing it, start with them now and get going on your 9 months!

If that's not enough income for you, then a second place I recommend is Starbucks. Why? Part time benefits eligibility, one of which is again tuition reimbursement. Theirs is a tad more directed - through Arizona State University online - but that's 100% reimbursed, some up front, some on the back end, for working 20 hours a week minimum and getting "C's" for grades. Their wait time for eligibility is shorter, 2 months, if you work over 160 hours over the course of those two months, so 80 hours each month, 20 hours each week. 

I recommend these two because you can get really good benefits while still being a part time employee. I haven't investigated other organizations. It might be of value to do so. I know UPS personally, as I have a part time supervisory position at a facility now. I don't have experience with Starbucks, but learned about it for a friend once.

Just ideas to get your education, funded by these two great organizations, build some cash in the process, and go for it in REI when you're ready!

All the best.

It seems like every time I run numbers on a property for buy & hold that I can get to $100-$200 cash flow and 12% cash on cash ROI when I consider putting 20% down. I'm using the following assumptions too: 8% (1 month a year) vacancy, 8% repairs, 8% capex, 0 management fee, tenant pays all utilities. I don't feel like I am being overly optimistic on rents either...I'm looking at comparable homes in very close locations to my target properties, and I am picking the lowest end of the rent. I'm getting property tax numbers from Zillow, closing costs from my last loan (which were considerably more than what they're going to be on anything I'm looking at buying), interest rate higher than what I can get a loan for, even throwing in an additional grand for extra charges by the lender, no cap rate because this is a sfh, insurance estimate from Zillow, future assumptions in the calculator are 3%, 3%, 3%, and 6% respectively.

I'm looking at $50-$100K homes that I can rent for $700-$1200 or more. If I don't have to make any repairs, does it make sense that I am getting back the good return numbers I mentioned above? What could I be missing, or in this space, is it that easy to keep a couple hundred bucks each month? Have I lost my mind?

Newbie with no prior real estate investing experience other than buying my own homes over the years. I have been scouring this site for the past couple weeks since joining. I've ordered some real estate investing books. I've followed links to other investors that Brandon and Josh have had on their podcasts. I've read several of other investors' information, newsletters, freebies, etc. I believe in educating myself before I throw multiple thousands of dollars at something, be it my money or anyone else's. 

I'm looking at BRRRR and/or rehab and flip. Just the information on rehabbing is mind-boggling. Hell, just what to look for in a general contractor, putting together a contract for said general contractor, permits, insurance, on and on and on. I feel I'm getting analysis paralysis and I haven't even looked at a property yet to analyze a deal to see if it is even worth it yet.

Just do it isn't me. I'm an accountant by profession. I'm analytical by nature. And, I have a risk averse wife that doesn't want to put money anywhere but under our mattress. I am so excited about doing this REI thing. I also know how much I have to manage her stress, which may be a tall order. I need so much to get this right coming out of the gate, ease her mind and get her buy-in on this venture.

Is it really best to just take the plunge and dive right in? How best do you recommend a guy start out but minimize risk to avoid devastatingly costly mistakes? I don't mind paying for education, but I don't want to be sunk before I even get started, and I'm having a really hard time getting off the couch so to speak.