All Forum Posts by: Hau N.

@Joe Funari Thanks for the recommendation. I like the strategy of buy-and-hold. For me either SFR or MF 2-4 units are fine. SFRs are hard to cash flow where I live.

My goal is not to quit my job because I enjoy what I do.  I just want to obtain the financial freedom.

Hello BP members, I was actually content with my life prior to contracting this "REI virus." My wife and I have good stable jobs. Her student loans were take care off. Mine is taken care off as long as I stay with my current employer another four years. We bought a new house two years ago. Our daughter struggled with health problems initially but now healthy. We were set! That is... until I found out about biggerpockets, REI, and my desire for financial freedom from our w-2s. The daily deal mls searching and reading about other strategies to invest for passive income is causing some undesirable stress in my life. Does anyone feel this way? I've read that many BP members had taken half a year or even much longer to just find the right deals. For now, I've decided to slow down a bit and take my time. When the time comes it will come. Thanks for reading. HN

Originally posted by @Will Barnard:

 Originally posted by @James B.:

We have purchased 7 SFR's in almost 3 years with MCF. Obviously been happy. Sorry about your experience @Linda Hastings

I agree with @Will Barnard- go out to meet and scrutinize anyone you purchase properties from- also all TK (and businesses for that matter) are in it to make money. TK are priced at retail, but what's your time worth? I work more than a full-time job, so with MCF, earning a 9-12% coc return has been nice.

I manage my own expectations, and my managers at MMGT- we communicate regularly and know what each other brings to the table. 

That's a good point James, time is money so taking that into consideration is certainly nec scary, however, I have a question for you. If the 9-12% passive return is what you and others look for from a TK provider of SFR properties (or small multis), then why not go straight to a proven sponsor/syndicator of larger commercial properties where they go after value add opportunities providing a purchase below the market value and atvor above those same returns and completely passive for you? Let's face it, and I'm sure you can agree if you have done this for enough years, owning a TK rental is not fully passive, you still have to deal with problems, property managers, etc. Not so on a larger commercial deal syndicated where all that is done for you as well..

@Will Barnard You have a very good point.   I'm been looking around in the Central Valley since May without any luck.  I almost pulled the trigger on a few but luckily BP community gave helpful feedback so I didn't go through with them.  I'm at a point where I'm looking for opportunities outside of CA.  Do you have any recommendation regarding proven sponsor/syndicator?  TIA.

bump. JJ, i was wondering how your search for turn key company went? did you go with Memphis invest?

Sounds like a keeper to me.  I'd jump on it without question and keep it forever if it were sold locally.

The loan forgiveness that I know of doesn't apply to private loans, only with US Department of Education (ie the government).  However, some employers offer help with student loans, no matter which type.  Consider asking your employer or finding an employer that offer this benefits.  

I think you should invest in RE even though you have student loans.  Consider refinancing your student loans if interests are high.  Google online and you'll find many companies that offer very competitive rates. 

@Juan Mendoza If you're investing for the appreciation, then negative cash flow is "ok." But not at negative $300/month. I personally think that a bit too much.  I'm sure you can find a property in a good neighborhood and school district that will be negative $100/mo or even break even.  

I agree with Jeff.  In my opinion it will level off eventually, but at the moment many SF homes are being sold at asking price.  New constructions are going left and right at the moment on my way to work everyday to supply that demand.  It'll level off, but I don't think anyone knows when. 

I ran the numbers and it seems like you'll be negative about $348/month assuming 10% vacancy, 10% property management, 10% repair, 10% cap ex, $250 tax, and $40 home insurance. I was considering the similar SFR in Clovis with smaller negative cash flow about a month ago and it was torn apart by BP members. LOL. Good luck. Maybe it'll work out for you but having negative cash flow bugs me even though my wife and I can afford it. I'm considering crowd funding now if no good deals come up in the near future.

Thanks @Jeff Zimmerman.  Added you as a  colleague. 

It feels good to be homeowner, doesn't it?  Congrats!