All Forum Posts by: Jim P.

@Joel Owens - thanks. Is it really that easy? My rough numbers(NOT real numbers, only quick numbers) would be:

$6,000 per year / $25,000 cash purchase price = 24 % cash-on-cash???

I understand there are all the other factors that we use on these calculations--- but is that the jist of it?

@Mike D'Arrigo

@Mike D'Arrigo

Thanks for info- I'll look into refi very soon...

thanks guys!

Jimmy

Hi All,

I've searched and cannot find much that pertains to this issue.

I just bought a very small house(cottage) for $25K in cash. I may try to refi/heloc/etc...etc...etc... in the future to get my money back out to re-invest.

I'm thinking that the cash on cash for something like this is:

normal cash-on-cash formula as it works with the numbers of the refinance

Then subtracting:

whatever return you would have on that cash(put in whichever investment you choose)--- for the amount of time the deal is using "cash"- and not bringing income to you.

Hard to explain- but does this seem correct? I'm not really worried about my return so far--- just interested in learning the math...

thanks,

Jimmy

Hi all,

I'm running late at work. So, I'll either miss you guys, or make later towards 7pm...

fyi- in case you guys are getting updates on your phone...

Even if I don't make it- thanks for getting this going!

Jimmy

Hello all,

I'll try to make it- not 100% sure of my schedule though...

thanks,

Jimmy

Hi Richard,

Greetings from the big city of Kuna. I'm fairly new here also, but have already learned a huge amount from many people on this site. ( @Jonna Weber has already graciously answered some of my questions).

This site has many resources, so make sure to bounce around and check out all the sections to find something helpful.

Anyway, congrats on getting started!

Jimmy

@Brandon Turner

thanks for the welcome! Also, thanks for your work on this great site... The podcasts are an amazingly great way to learn. Its great to learn from you guys and your guests, and we can tell you and Josh have fun doing it... Nice!

thanks again,

Jimmy

Welcome Ron,

You've come to the right place. I only finished my first deal a few weeks ago (working on #2 now)- but Bigger Pockets is amazing. A bunch of great, helpful people. Even when people disagree here- its not done viciously--- and the whole community learns from all the different points of view. Very, very helpful...

Welcome!

Hi all,

Thanks for chiming in. We are all in the same area- will probably be "bumping into" you somewhere around here...

thanks,

Jimmy

Hi all,

I'm normally a lurker(always researching something)- but after learning so much from this site- decided to register and give back(If/Where I can).

I'm from Montana, have lived in Boise, Idaho since 1995. I have a good paying/low rewarding job- that's why I'm here(to create options in my life)...

Looking to invest in lower priced properties fairly close to Idaho/Montana/the Northwest for buy and hold cashflow. May change my strategy later as market conditions/my investment positions change...

I'm a very frugal guy, having a decent amount of cash in savings, not doing much.

Anyway, to limit my expenses (and decrease my dependence on my job) I refinanced my primary residence last year to get my mortgage down to about $500/month. That(plus an amazing vacation last year)- pushed me to invest more heavily into Real Estate. I didn't think REI was "my thing", but I am learning a lot and am quickly making it "my thing". Its been fun already. (soon Donald Trump can buy MY books)... :)

Just a couple weeks ago- I finally closed on my first duplex(a long-drawn out process, where I learned a million things). Previous landlord was a burned out slum lord and wanted out. It's a solidly built 3bed/1bath duplex with some maintenance needed. I bought at $56,000- gross rents are $1250(and rents are slightly under priced currently). Through many delays with realtors- i learned many things the hard way. BUT, I also learned that this section of the city will be undergoing "urban renewal"- so I should receive money for the paint, roof, etc... Score!

Already in the middle of my second purchase (2bed/1bath duplex with a 1bed 1 bath house with an empty lot). Same basic area of town. Not a lot of details yet, but its going smoother since I know a little more(and have a different buyers agent) than the first one...

And... Still looking until my options for financing/savings account run out.

Anyway, thanks to all here. I've already asked a few questions- and have learned immensely from other people's questions.

Thanks for a great community! Its amazing how helpful(and not secretive)- people are here. No need to reinvent the wheel!

Jimmy

I'm also fairly new at this(just closed on my first duplex- working through my second duplex and house deal right now).

I'm probably repeating many others, but:

leveraging (using the banks money)- will multiply your gains

-leveraging is a huge risk(what is your goal/risk tolerance?)

Personally, I'm shooting for cashflow with as many properties as I can. BUT- i plan on having a large "slush fund/stash of cash" for any surprise problems that may occur. This won't save me 100%- but it "hedges my bets".

Like I said- cashflow first, increasing equity, tax advantages, etc... etc...

- But I'm fairly new, just another point of view...

Many variables- good luck!

Jimmy