All Forum Posts by: Greg Johnson

Hi Curt, Brent,

Thank you both for the feedback.

I would consider cheap properties to be <$250k and expensive properties to be >$500k.

I completely agree that appreciation does not necessarily mean it is time to sell simply as a matter of course. The cash flow has actually improved almost linearly in tandem with the appreciation, which has been very nice -- I am charging market rent. I do not currently have a good tax agent.

Truthfully, I haven't 100% convinced myself that I should sell the OR property. I'm fond of the idea of "selling high" and converting profits into new investments that are "bought low." On the other hand, the cash flow is excellent right now and I do base my investments on expected cash flow (as opposed to expected appreciation). I strive for cash-flowing investments that give me the luxury of selling when it suits me.

I guess I'm looking for guidance on the decision making process investors go through for this type of situation... thank you, again!

Hello,

I tried searching on this, and couldn't really find enlightening information. My question is: have you found it better to invest in several cheap properties or fewer, more expensive properties?

I read this article, but this struck me more as a case study: https://www.biggerpockets.com/renewsblog/2015/04/0...

Right now, I live in CA and have a duplex in OR and another duplex in CT (forced to be an out-of-state investor due to home prices in Southern California). The OR property has appreciated substantially over the years, and I'm actively considering selling it to either buy 1) a larger/more expensive property or 2) two or three new cheap properties that would all be in the same market (not necessarily Oregon).

There are obvious upsides and downsides to both concepts, but I'm curious as this community's personal and general experience on the topic (or pointers to other threads that my search missed). Appreciate any comments!

Hello,

I'd like to hear folks' opinions on adding a third business partner into the mix for part time RE investors.

About a year ago, my brother and I bought our first property (multi-family) held in an LLC that we each own 50% of. Having had a great first year, we've decided to pursue additional properties and grow our buy-and-hold landlording business.

At this point, we've reached a crossroads: we're discussing the cost/benefit of adding a new partner.

It seems that if we add a third partner, we benefit from additional capital contribution, reduced personal risk, fresh ideas, and a quicker time to creating a self-sufficient business (i.e., having business profits fund new properties). The most significant drawback is the management "cost": three approvals instead of two on all decisions and the resulting increased time required - we both have full time jobs and we really enjoy the flexibility that a two-person partnership offers (e.g., text message decision making). I'm having difficulty assessing if the quantitative financial benefit (faster growth, but with ownership dilution) exceeds the qualitative management cost.

Has anyone gone through a similar experience? How did/would you make such a decision? Appreciate any insights!