All Forum Posts by: Jacob Sanders

 @Adam Eckhoff I personally prefer real estate over stocks because it gives a quicker return on cash in your pocket (unless you are a skilled day trader/options trader). Especially if you get good at the BRRRR method or flips! It really depends on what is most important to you. Money down the road from a historically steady 10% increase in stocks that you will pay taxes on to collect, or immediate cash flow with tax advantages and an annual appreciation of 3-5%.

Feel free to dm me if you would like to chat more on the subject 

@Adam Eckhoff

If you don't factor in property management expenses, then my cash on cash is 0.96%

 @Adam Eckhoff I decided to purchase for a few key reasons:

1. **Affordability**: The property was reasonably priced at $470k, fitting within my budget and investment strategy.

2. **Quality of the Property**: The property itself is of good quality, requiring minimal immediate repairs and offering modern amenities that are attractive to tenants.

3. **Rental Income Potential**: The property generates a monthly rental income of $4475, ensuring a sustainable cash flow with an expected growth through yearly rental increases.

factors that made this deal attractive:

1. **Affordability and Quality**: The combination of an affordable purchase price and property quality was appealing.

2. **Moderate Rental Income**: With a monthly income of $4475, the property offers a fair return on investment with expectations for growth.

My Net Cash on Cash is 0.6% Not ideal but with yearly expectations for rental increases and equity growth, I will eventually get a good cash flow. Until then, I still have the capability to take a sizeable line of credit to which I can use for the mentioned BRRRR strategy

I chose the buy and hold strategy for several reasons:

1. **Immediate Cash Flow**: The property provides immediate rental income of $4475 per month, ensuring steady cash flow from the start.

2. **Stability and Predictability**: Buy and hold offers long-term stability and predictable income, aligning with my investment goals for consistent returns and tax benefits.

3. **Affordability and Quality**: Given the property's affordability and quality, there was no immediate need for the extensive renovations typically involved in the BRRRR strategy.

4. **Lower Risk**: The buy and hold approach carries lower risk compared to the BRRRR strategy,

5. **Time and Effort**: The buy and hold strategy is less time-intensive, allowing me to focus on managing and optimizing rental income rather than undertaking extensive renovations and refinancing processes.

That being said, I am interested in trying the BRRRR method in the future.

At the time of purchase, I lacked the skills and knowledge necessary to attempt the BRRRR method without exposing myself to risks I was not prepared for.

Hope that answered your questions. I wrote it up very quickly..

 @Justin Rowe My main focus was to find a property with acceptable profit margins, and in a C- or better neighborhood, which at the time was challenging.

I ended up buying in the Alta Monte neighborhood.

Hi @Jessica Taylor,

I'm a member of the Central Florida Realty Investors Association (CFRI) and I think it has a lot to offer!

If you're interested, I can get you a free entry to one of our meetings.

Welcome to the world of realty, I wish you the best of luck!

Hi @Landon Harless I appreciate your interest in diversifying and broadening your investment strategy. Are you seeking guidance from here, or are you primarily interested in networking?

@Ed Ma There is a lot of great advice here. I appreciate the insights on the 1031 exchange method. However, it's important to note that it functions as a deferral, meaning the taxes owed will be carried over to the next property. Therefore, if you choose to sell the subsequent property later on, you will ultimately be responsible for paying the taxes.

I would retain ownership of the property, continuing to generate rental income, while leveraging a second position loan to acquire additional investment properties. Subsequently, employing the 1031 exchange strategy once the 27.5-year tax benefit deduction period has elapsed.

- As I am not a finance expert, I urge you to conduct thorough due diligence in verifying this information.

@Flavia Vangelotti With your expressed concern for cash flow, I suggest considering a Debt-Service Coverage Ratio (DSCR) loan. This type of financing requires the projected income of the property, determined by a local expert, to sufficiently cover the monthly mortgage debt. This provides assurance of a stable investment. Additionally, satisfactory credit (typically 680+) and a down payment of at least 20% are typically required to qualify.

- I'm not an expert in lending, so please do your due diligence in verifying this information.

Rich dad poor dad is the reason I became an Investor/Realtor! I wish I listened to my teacher when he made us read it in highschool!

 @Flavia Vangelotti I'm glad we could help give you some insight!