All Forum Posts by: Greg Miller

What is your cash-on-cash return on this multifamily?  How much cash flow will you made per unit per month?  I have used U.S. Bank for single family mortgages in the past.  They were good to work with, before I capped out on the number of loans that they would offer to me. 

I would work your numbers backwards to obtain a 10% cash on cash return.  Can you really only spend $10k on repairs, but achieve a $40k equity gain?  If true, then that is very sweet!  What type of property is it? 

Where are your rental properties located? Are they single family houses, duplex, 4-plex, or even bigger properties? If you have solid tenants and strong cash flow, then I would continue to pay down the mortgages. Going forward, I would purchase everything in the name of the LLC.

Rising interest rates should slow the appreciation value for properties.  You just have to factor in a higher rate when running your numbers.  Hope is not a strategy!!!  If you like the rate and can lock it in for a longer period of time, then I would proceed.  I still like to leverage all of my properties...paying 100% cash comes with the opportunity cost of missing out on good deals while you are trying to building cash. 

I own 8 single family houses.  I bought the first one back in 2010.  The calculators are great, as well.

I became a PRO member in the last month.  A fellow PRO member in my area contacted me regarding multifamily units.  I met with him.  He gave me four lenders that I am following up with right now.  Instantly, I have someone that can answer my questions.  This would not have happened without becoming a PRO member. 

I am going to have lunch with another PRO member in the next week.  We only work a few blocks from each other. 

What I best like about my PRO membership is that I am building a strong network with like minded people.  The money spent on the PRO membership is reducing the amount of time needed to find this information on my own. 

I have used two general contractors on my properties in St. Louis.  The first one I met 8 years ago through a real estate agent referral.  The other general contractor was a wholesaler referral.  In both cases, I asked them to meet them at their current job site.  This accomplished two things:  allowed me to see their work first hand and limited their downtime.  People love to show you their good work and what they are trying to accomplish.

Here are my rules with general contractors and subcontractors:  never pay more than 25% upfront for the entire job, everything is bid by the job and not a hourly rate, check their work on a regular basis (weekly is ideal), have all of their contact information (W9, mailing address, cell phone number), look at how they take care of their tools & vehicles, and ask for two references for most recent work completed and follow-up immediately with these references.    

Sorry, but that is not always the case.  Good properties get snatched up very fast these days.  My wife is also a real estate agent in St. Louis and the market is pretty strong here, as well.  This is the way I would frame it:  you paid $5,250 extra in your mind.  At 5% down this comes down to $263 more out of your pocket.  This is nothing in the long term.  Think about 2+ years from now when you want to move out, replaced yourself with a solid tenant, and have a strong cash flowing asset. 

We are at the point in our real estate investing portfolio that we need business cards.  I have not given it much thought up to this point.  As our network continues to grow, I have found that business cards are becoming essential when connecting with people.  What designs and styles do you like?  What other insights can you share?  How have business cards helped in growing your portfolio?  It might seem trivial but something small that my wife & I need to implement.

Sounds like the lesson of sweat equity was worth it in the long run.  While it was a grind to rehab the property yourself, the profit at the end was worth the sacrifice.  Your biggest takeaways will allow you to become much sharper with your second deal.  Best of luck in the future!