All Forum Posts by: Jason Baldwin

I recently stumbled on a fully occupied 6 unit property that would bring in about 35% Cash on Cash and that does take into consideration 15% vacancy. The city itself has a higher than average crime rate according to neighborhood scout. To be exact it says "Safer than 15% of U.S. Cities". Most crimes constitute Theft, Burglary, and Assault. Only 1 murder reported in 2017. So I wish to ask everyone... At what point do you draw the line and say that a neighborhood is too shady and move on? What other factors do you consider outside of neighborhood scout?

@Neil Goradia I appreciate your response. I should clarify that the house isn't a dump, but combined with the risk of maintaining the property and little return I wasn't sure if it was better to leverage the equity or just dump it. Do you have any recommendations on selling without losing $18,000 in realator fees? The Brrrr strategy is something I'm very interested in and I'm watching several out of state markets right now. With such little capital I figured it is best to house hack until we can grow our capital large enough to do conventional loans. I'm also learning about private capital right now which I hope to fully leverage after our portfolio is built up.

I wanted to play a quick game with everyone. Leveraging your expertise, I'd like to understand how you approach the situation I'm about to describe.

Long Term Goal: Build RE portfolios using a buy-and-hold strategy by building up 40 units in the next 6 years.

Situation: Small family owns their first single-family home which was purchased 2 years ago.

• Purchase Price: $320,000 (FHA, minimum down)
• Oustanding Balance: $300,000
• Appraised Value: $370,000 
• Mortgage: $1,950
• Est Rental: $2,300 (no expenses considered)

Considerations:

• The basement may have been finished without permits, professional plumber, or electrician
• The yard is large and potentially hard to maintain
• An additional $2,000 is needed to prepare for rental or $10,000 in renovations before selling 

Therefore: What would you do as a starting investor in order to reach the goal stated? Would you hold onto the house? Would you sell it? 

Thank you in advance! Looking forward to your responses! If I can provide additional information to help you make an informed response, please let me know.

As others have pointed out... going into a marriage with assets, you should 100% get a prenup. Getting married and choosing to stay married is an individual choice. I cannot, and would not if I could, force my wife to stay married to me. That said, what's yours is mine should be a corner stone of your marriage. Share everything. It isn't until your agreement is broken (divorce) that your prenup goes into affect. I dont think a prenup is saying you're dooming your marriage. Even from an emotional point of view.