All Forum Posts by: Chris Masons

Not sure if there is a specific term for this but I generally shoot for a period of 5 to 10 years in which to have all my invested capital back....

Obviously the sooner the better and with multi families I find it to be faster then single families. I have a few single families scheduled to return all my capital in ~ 7 years....

I try to avoid properties with over a 10 year payback but not to say that's a be all end all rule as if there are other big positives about the property than I will sacrifice having a longer pay back long as I am getting something else in return such as built in equity upon purchase, great cash flow huge value add opportunity Etc....

I usually look at4 metrics.. time needed to get capital out, cash on cash return, monthly cash flow as a dollar amount and price paid compared to fair market value. There are many other things to evaluate but I find myself constantly going back to these 4

thx,

Chris

Thank you @Dave Foster for the quick lesson on alternative like kind exchanges, useful info for sure!!

and @Patrick Murphy I never said you were old! Age is a state of mind I keep telling myself.. but the problem is some days I feel 60!!!

Sounds like you are doing great as well. I have been at this game since I was 23, always have been a buy and hold investor, I have only sold 1 investment property thus far....

But I agree with your process at age 60 sounds like a great time to unload and truly have passive income....

Have a look at some high quality REITS as well like O, DLT, and VTR as well as utility stocks that throw off nice dividend yields on a monthly and quarterly basis.

Definitely a completely different animal than holding and actively managing income producing properties but as we get older I think the desire for TRULY passive income becomes more important and diversifying always is a good thing too!!

Best,

Chris

Hi @Dave Foster

Can you elaborate a bit on those products you mentioned as options to 1031 from a rental into? I understand the triple net lease but am not familiar with the others you mentioned. I assume these products would still keep you in the rental business just with less hands on management?

While I am younger than Patrick I am on the same track as he is ( I am 45 and currently manage 15 properties while working full time)  And would like to most likely exit completely at age 60 and find something truly passive yet still give me as close to the yield I am generating now (between 14 and 22% annually) I don't expect to get the returns I am making now on my rentals while self managing but at age 60 I hope to scale down my cost of living as well and not require as much, plus I will have 401k as well as social security so my plan is to have multiple streams of income. 

Thx!

Chris

Very strange... As others have stated make sure you have at minimum an e-mail from him stating that he decided to move out and has left keys in the apartment so you are covered.....

If possible get him to sign a document stating that he has moved out and returned possession of the unit to you and is subject to any penalties and fees as per the lease for breaking the lease.

Please keep us updated as I'd like to hear what transpires

thx,

Chris 

Sell for undervalue. Every property has a valuation, trust me if you reduce the price low enough someone will buy it unless there is something fundamentally wrong with it in which case you donate it

You mentioned that it doesn't cash flow even though it's paid off???

thx,

Chris

As others have stated you may a great tenant and on other had you may have a PITA...

Perhaps visit the tenant and give them somewhat of an "interview" to feel them out and see what kind of a vibe you get from them?

Treat them like any other tenant and base your decision on your completed rental app and  face to face interview...

best regards,

Chris

I believe that a pretty famous well known person  has spent a TON of money buying up lots and lots of properties in Newark and is doing gut renovations to all the buildings to hopefully add value to the area and real estate market..

I believe this is in the downtown section not south side....

thx,

Chris

prior to 2005 -2007 the word "short sale" was a very unknown term that 90% of people had never heard before.....

Tatiana,

If you purchase the condo they would need to be informed that there is a new owner and future rent payments shall be paid to the new LL/owner...

As Anthony already stated the lease agreement supersedes the sale as far as tenant being allowed to live out the remaining time of the lease.. As you said you can try to entice the tenant to move by offering them cash. How much is anyone's guess ... One month, 2 months 3 months rent? It all depends how motivated the tenant is on moving.. Perhaps in a perfect world they are looking to move and would be happy to be released from their lease.

Are you dead against allowing them to live there until lease ends naturally and being a landlord for that time period? I assume you are looking to owner occupy the condo?

Thx,

Chris

Bring up with listing agent and see what they say.. You can always try to knock off a few thousand on the basis of you did your due diligence with what was advertised and now it turns out that that is not the case....

Another option is to say nothing  - right now.... Wait until inspection and ask for a everything to be fixed if they give you pushback you can than bring this up and use as leverage....

At end of the day if it is a good deal it shouldn't be a deal breaker. Does net income of ~ 600 less yearly impact the ROI by more than a .5 of a %?

good luck,

Chris