All Forum Posts by: Chad McDaniel

Found a lady looking to sell her rental that is slab on grade. Not too many of these in our area. Most everything has basements under them. Property manager that I know told me to stay away from slab on grade homes. What are your thoughts.

My question is two fold. First, What cap rate range should I be looking for in todays market when looking at SFR-MFR 4 plex?

Two, How do I find what the go cap rate for my area is?

I would go to your local home depot and buy RS means Residential Repair and remodeling cost book. Then take a hour or so and walk around to see how much materials cost. Labor is going to be a major expense also. Rehabs add up fast.

Has anyone on here had any luck with investment property in ski resorts? My wife and I enjoy going to Colorado a couple of times a year. Thinking about looking in the above listed areas. any advise?

"Can't speak for other markets but I think they are very late to the party, won't find many decent homes here in the Phoenix area. "

Do you all think that the REOs are slowing down or running out? I thought I read on hear a few weeks ago that there are still over 2 billion in REOs that have not hit the market yet.

Thanks for your replies. I'm meeting with the banks next week once the appraisal is finalized. I will keep all of this in mind.

Chad

Long story short, I just had my farm ground appraised. Looking at using the equity in it to start investing in SFR to 4-plex. unofficially the appraiser told me its worth between 500-600K but would have to do what they do to make it official.

Now I owe about 170K. If I refi, I can comfortable pull 150K out of it and it will still cashflow. However, If I refi, I lose my combined interest rate of 4.2% over 15 years. (90K is at 1.5% thanks uncle sam!)

What I would like to do is use the equity in the property as collateral against loans too get me started in REI.

Example.
Duplex is selling for 100K
Rent Roll is 1800 per month
cost are 1400 per month
Bank will finance 70%
I want the bank to use equity to finance the other 30%

Can I use that equity in the land as my "skin in" to get the bank to finance 100%? Or are they going to require me to refi now and put the cash in?

My goal is to do this for this first year or two to get a good track record and a few properties under my belt. Then go back and refinance the REIs on there own and not have the Farm ground attached.

Am I crazy for thinking this way? Will the banks use the collateral?

Can someone explain to me how Self Directed IRAs work. I tried to do a search but kept getting an error page.

Thanks for all the input! Passive income was the wrong term to use. What I'm looking for are ideas that don't take a ton of time and are good income producers. By good, I mean worth the time to do, but not taking a lot of time away from real estate.

My vending business take about 10 days per quarter to do the routes and all business related items (except marketing). I have started to take three hours every other week to send letters out or call perspective customers. this is not a huge money maker but for the amount of time i put in it, it is well worth it.

I agree that the carwash will take more time. However, once it gets up and going, I should be able to take care of the day to day items in a few hours. I do plan to hire a retired guy or gal that is looking for something to do.

7 forms of income is a lot to take on. I was just using that as a starter.

Keep the ideas coming if you have them.

Chad

I once read (or heard) that everyone should have at least 7 different forms of passive income. Other than real estate, What are some of you doing to create passive income?

I currently own and opperate a small vending business. I'm also looking into starting or buying car wash. (Maybe Franchise?).

Any of you running something on the side that has good passive income coming in, and does not take too much time away from real estate? Please let us know.

Chad