All Forum Posts by: Jeremy Wickens

That is a very poor business model. Thank you for sharing. It will be a reminder to scrutinize any flat rate plans as closely as possible.

This inadvertently is going to demonize any single parent. As a landlord if you know that you cannot evict someone if it will cause hardship due to childcare, why would you ever rent to someone with one income and children? One layoff and you just ate a bill for a year long eviction. Whether it's legal or not to screen this way doesn't mean it won't happen. 

Bad answer but I feel it's necessary. Do the numbers work? 

Can you put "boat loads" into it, sell it at market value and make a good return based on the time invested... or is it a break even situation? 

If it's the former then I'd say you really can go with any exit strategy you want, buy and hold if it cashflows, fix and flip or even selling it to an investor will be profitable. If you are just going to break even or make a few thousand after months of coordination and effort, I'd probably dump it at a fair wholesale price. I'm not an expert but I believe in numbers. You have the unique advantage of having just did this with one of the three houses so you have a better idea of what is going to take to do it two more times. 

Agree with the previous posters. I think you should double or triple your target goal. Another note, specialize in one type of investment when you start but when you get your first deal make sure you are analyzing it from different angles. Multiple exit strategies is a major component of successful real estate investing. 

Cheers and good luck. 

Getting that to cashflow will require a very high understanding of the local market. Cashflowing isn't necessary if you get it free (100% financed) but you don't want to be cashflowing negative and you don't want to be fully leveraged. One way or another you need to get a bargain on a house that costs that much for that size. 

I think this is going to come down to your personality and what nich suits you the best in real estate but I would start by analyzing as many deals as possible as if you are going to need to find 100% of the money elsewhere and as if you aren't going to lift a finger to run the operation. By doing this you will not fall for properties that only cashflow well because of your savings and you will create systems that will work if your teaching and your love life get crazy. 

Good luck

@Matt K. I do this in many aspects of my own life, for my own bills and it is far easier to manage. I love this idea. 

This is what I thought but it isn't working for me so I assume it must be the operating system I'm using.

With the information you have provided your return on the 83000 should be in the 15% range including loan pay down over a five year period. That's not a bad deal by any means. Just gotta make sure you got those numbers nailed down for maintenence, vacancy, management, turn around etc.

I understand. Moving forward it will be an important experience. Making mistakes and having it cost very little is the best kind of mistakes. Making mistakes is the fastest way to get better at what you do as long as you are being honest to yourself about what you could have done differently.