All Forum Posts by: Jason Schwab

Hey guys, 

I have a question, any insight is appreciated. 

We have one rental property we purchased in April. Duplex purchased for around 30k w rehab and is now renting for 850 a month less 10% prop management. It's probably worth low 40's after rehab. 

I would like to buy two more this year. 

Financing questions:

- we have the disposable cash to buy one more... Should we use it or buy the next two in some other way? Mortgage w down payment? 401k? HELOC against our live-in home? BRRR process?

I don't know if the right thing to do is get creative right off the bat or buy w cash then save and buy w cash again. Our goal is buy and hold passive income and I would like to own 10/12 in the next 5 years. 

Thank you for any and all insight. 

That is what I have found as well guys, thanks so much for the help. 

Jason 

Hey all, 

A friend and I were discussing the attractiveness of the Vancouver, WA area. Not specifics, just logistically for investing purposes. We were wondering if anyone can give us some color on this area of the country for buy to rent / buy and hold / flipping purposes. 

Thanks for all any and all insight. 

Jason

@Derreck Wells Derreck, 

Thank you very much for that. Candidly this has been one of those embarrassing questions I didn't understand fully but was kind of worried about asking. This is a great explanation and adds excellent clarity. 

Thanks again, awesome. 

Hello all,

- @Paul TimminsI joined two REIA clubs so will attend those meetings as soon as they happen

- @Lee Smith At this point I am comfortable with the property manager and the contractors but time will tell. Both came highly recommended. I could have done more research on the comps, maybe this was an early mistake but liked what I saw in the zip... might be an issue but I hope not. 

- @Ross Denman I am a little lost on the banking piece, I have a lot to learn around the lingo. I bought the first property cash. I have heard the team cash out / refi multiple times now. Not sure I completely understand. 

With that said, I would be very interested in looking around the South Broadripple area. I like that area quite a bit but have no idea if that is in my budget or the numbers work out favorably. I would love to start analyzing deals in that area. 

@Beverly Fast Sinclair Thanks for the welcome. My immediate goals: I would like to get to a passive income of 6k a month to start, I make good money but I work on quarters. When things are uncertain at work I am incredibly stressed. If I could alleviate that with around 6k of passive income a month my family and I would benefit in a huge way. I guess the 6k is the 4/5 year goal. At that point I would like to move into sporadic flips and continue to increase the passive income. At this point the goal is not necessarily to quit work, I find my job very gratifying... more than anything I just carry stress very badly and grew up in a home where finances were a nightmare and to be avoided at all costs. More than anything I just don't want to reproduce that and it's hard to shake. 

The first duplex deal (indi) cash flows +800 a month, over 12% return. I also own a 3 bedroom in Denver that my wife son and I currently live in but we are moving back to Seattle in about one year. I didn't know anything about any of this when I bought it but we purchased in a high rent area of Denver so we could rent it after we leave. I am almost finished converting it into a 4 bedroom, should be done in a month. It should cash flow about 600-800 a month for us as well and I have a property manager lined up. knowing what I know now, I would not have made this purchase again... but it has been a great home to my family and it has appreciated over 50k in the year and half we have been here. 

So that gets me to 1400 - 1600 less some property management expenses as well as all the others. I want to be very strategic about the next two deals which I plan to do cash. Then I need to better understand borrowing / leveraging / etc... etc... etc... 

Kind of stressful knowing I don't know so much. With that said, almost every single book and podcast I have read / listened to always tells you to take action and to not fall victim to analysis paralysis. For that reason I pulled the trigger on the first deal but obviously want to mitigate mistakes as I move forward. Keep it coming guys, appreciate all the information very much. 

Jason 

Thanks for the great responses. I love the growing checklist and I will follow through. Cheers, 

Jason 

Books: 

Rich dad poor dad

Cash flow quadrant 

Millionaire Realestate investor - Keller Williams

Any recs would be great.  

Thanks, 

My wife went to school and lived in Indy so has a fair idea. The school districts in the zip were fair as well. 

I may have jumped in a little fast. I'm happy hold off and get good opinions before moving forward again. 

Hello,

First off, I'm extremely green. A friend of mine is well into this path and correctly assumed that I would be interested in this type of mind set and approach to investing. I'm currently reading the staple books and it is all extremely exciting. 

I just closed on my first duplex in Indianapolis this week. The property checked all the boxes and I wanted to get my first deal under my belt. I used a wholesaler for this one which is working well but want the confidence to find and do these deals on my own at some point. 

Just to provide some color, I work in Med tech and make good money. Regardless, I've never felt financially free in any respect and I love the idea of asset vs. liability. More than anything, I am interested in attaining the freedom number that's been discussed on the podcast. I can afford to buy the first couple units with cash but not sure what I do after that. 

Thanks, 

Jason