All Forum Posts by: Jacob Ehrgott

Before and after pictures look great! Nice hustle and grind. I'd consider looking at how much net you would have if you flipped it. Would that amount be enough for a 4+ unit building? That's a lot of money tied up in a single unit at least in my area. May be able to significantly increase your ROI that route.

There’s plenty that look good on paper Nick. Syracuse has good and bad areas and high crime rates overal so I havnt gone that way yet as I’m not super familiar with it. I’d probably only do a big multi unit with property management out there. Auburn has less options but they do pop up occasionally. I have some cash flowing ones in Auburn so definitely possible.

Found this advertisement on Craigslist in my area. Seems like a good deal assuming the value of house is correct. Anyone have any thoughts or reasons why i shouldn't do this if the house is indeed worth 120k?

"Beautiful 5 bedroom 2.5 bath home located on very nice residential street in XXXXX.Walking distance to downtown. Detached two car garage! Nice back yard. Brand new high efficiency furnace, newer windows, roof... Currently set up on rent to own with tenant. Terms are as follows 1200 per month in rent with option to buy for 100,000. Tenant put 8k down and so locked in sales price in 10 more months is 92,000... I'm willing to sell for 65,000 so I can move into other investments. You would have a locked in 27k profit if buyer exercises option or you will have a property that is assessed at 120k and has massive equity already built in. Easy transfer done with attorney.

Thanks in advance!

Jake

You mentioned being able to find a deal in LV a few times perhaps you should find the deal and then once you have it retire/move then? My goal is retirement as well as I hate my 9-5 but 1.2 mil is kind of borderline it should be enough but if stuff went wrong may not be. I say you find the LV deal see some of that cash flow coming in then call it quits. 

I feel confident saying go for the 20% down with no PMI. If it was 20% verse an fha 3.5% down loan then each side has interesting arguments but it's not worth having a sizable PMI payment at no benefit to you for 5% less down.

@Pete Perez I had a 6 unit a few blocks down for a few years. The area the 6 unit was in is slightly worse but fairly similiar. I sold it because it wasn't making enough money to be worth the hassle but I can definitely handle the tenant base. 

@Patti Robertson I agree. I met both side tenants and was more comfortable with the section 8 arrangement. Would mostly keep this building full with section 8.

Appreciate your feedback Pete and patti!

My thoughts on this are with these numbers it's hard to see how enough could go wrong to not make this work even in a C class area. Is this opinion wrong?

@Jessie Niu I agree I never even consider appreciation as I intend to hold long term just speaking in generalities as to why someone may choose SFR.

Multi family homes just cash flow better then single family homes. Single family tend to appreciate better. I never find single family in my area that work out on paper to cash flow. 

obviously different markets have different numbers but I could get a similiar house/rents at under $150,000 purchase price. No way you ever make money at those numbers.

Jake