All Forum Posts by: Greg Moritz

As a rental these numbers are pretty terrible.  So, I wouldn't hold it unless your strategy involves long-term break even/slight-loss properties to benefit from appreciation/paydown.  Make sure that's a conscious decision you are making though, because that strategy has both benefits and risks.  

In terms of getting immediate equity... what do the comps say it the home is worth (and I don't mean the zestimate)?  How quickly could you sell it if you need to?  Is there a lot of activity around there?  How is the neighborhood trending?  

No problem!  If you haven't read it yet, I highly recommend @Brandon Turner's Book on Rental Property Investing.  He breaks down in great detail the things you want to think about and the analysis you need to perform.  You can get it here:  

https://get.biggerpockets.com/rentalbook/ (or on Amazon). 

I think it's also worth considering risk.  If a property does not have a healthy cash flow it means that even a slight dip in rental prices or unexpected vacancy can lead to you having to come out of pocket to support the property.  Whether this is an acceptable risk depends on your financial situation, long-term goals, how leveraged you intend to be, and your chosen risk profile.  

@Austin Fruechting Thanks for explaining your financing structure. I'm still learning about different financing options so I'm hoping you can clarify something that's probably pretty basic for me. When you are doing a deal if the bank will give you 70% LTV so long as you put 10% down...where does the other 20% come from?

Is it that you only buy properties that you know will appraise for 20% higher?  

Agree with what @Tim Puffer said.  I think we'd be happy to give you our take on your numbers, but you need to do some analysis first.  Go through the financials on the properties like your books tell you to first.  Also we need to know more about your goal with these properties.

I invest in Atlanta, but that's because I'm local and can get to know the market.  It's true that there are neighborhoods in Atlanta like Kirkwood, O4W, Inman Park, etc. that have seen a large growth in appreciation over the last few years as parts of the inner city have become revitalized.  But, those areas are largely turned now and I don't think there's any reason to expected that kind of rapid appreciation to continue.  Also, nothing I've seen in those neighborhoods is going to come close to cash flowing.  

I should also say that I find a thread promoting Atlanta, from a real estate agent in Atlanta, to be a rather ethically dubious form of advertising.  

@Michaela G. is the resident expert in all things Pittsburgh I believe.  

Your story is incredibly inspiring.  I'm planning to be where you are in 7-10 years.  I love to travel too so maybe we'll run into each other. :)  

Since you don't seem to mind questions... how much do you think being able to do this full-time had an impact?  Right now I'm pursuing this in my spare time since I've got a high-paying W2 job which helps me save capital for more investments.   

Welcome to the site @Rahib Karim.  For me as a new investor, having an investor-focused and knowledgeable agent has been hugely valuable.  It's true that I don't get the commission and won't save that money when I sell, but he's already saved me more than a few percent with great advice on properties to look at and properties to stay away from. 

I have to agree that this book is incredible.  I thought real estate was far too complex for me to learn, but after reading the book I became inspired to take action and am closing on my first quad in a couple of weeks (with the second property a couple weeks after that)!  

I've read 6 books on Real Estate in the few months since I started getting interested and none of them have been as full of useful advice as @Brandon Turner's.