All Forum Posts by: Henry Lazerow

I make around $3500 a month net cashflow from highly leveraged brrrs but some 6 years old and this is factoring in reserves all the random repairs etc. The cashflow comes. Avoid c class houses if dont have your own team. A/B 2-4s have pretty much 0 tenant issues, if you ever have an eviction it means your in a bad area. On my northside chicago units I have never even had to give a late fee in 6 years. 

Myself as a realtor pre vet its completely legal as long as not based on a protected class such as race etc. 

HELOC then you can use the equity for another deal but I would only use it if its for a flip or brrr or possibly if have a plan to pay the heloc off over short period of time. Helocs aren't really for long term financing, the rates high and adjustable. For a longer term hold using it for downpayment you can do a heloan its a fixed rate heloc.

Apply for helocs, many have much more relax prequalifications vs mortgages. Just apply a few it has no cost to apply and see what get approved on you will be surprised they often do not even verify income fully. I use Citizens and its great terms 25 yr with 10 yr draw. 

Yes and its very easy with a good handyman, etc. I do it and have many clients who do the same. Managers cost so much and make repairs cost even more, I do not see their value until you have 50+ units and no time. 

I second the Turno recommendation! Makes cleaning schedules easy to manage. 

Agree with above its best to have the nicest unit be available for house hackers. I would also try to raise the rents of other units before the sale will help you sell it at the highest price. Market is crazy right now with multiple offers on most buildings that are priced right, so definitely a great time to sell!

Yes, I done similar. Issue now is more that deals dont cashflow with high leverage but if living in it or banking on appreciation can be a winning strategy forsure! 

Also I don't so much agree with all these posts that make C class sound so bad. I have a building in Rockford IL I self manage its the definition of C class and the tenants are all easy, occasionally ask to split payments or pay late and I OK it. Never had any rent actually go uncollected or much of a headache. 

I self manage all of mine and many of my clients self manage. It's all about having a good handyman and leasing agents if you are out of state. The property managers for the most part are awful unless you have 100+ units and then they prioritize you. 

The total return on unleveraged real estate is about the same as holding SP500 but with 10x the work and risk. Real estate needs either mortgages to make sense as investment or strong value adds to create equity for a high return.