All Forum Posts by: Dustin Rose

Hi Paul. Indy is great- great posts above about which areas. I've also had success in Toledo, Cleveland and Columbus Ohio.

Nothing like buying a property for 50k that rents for $850 that has brand new electrical, roof, ac and plumbing. LOL I can't believe these deals are out there.

Great resources on this site too. This site really helps people realize that building their passive income is possible and helps provide the resources to do so.

Tim,

Sounds exciting that you're getting into investing. Great posts above and great advice- which it seems you will always get on this site.

Zillow is a decent starting point- just verify with a realtor that you learn to trust. I can recommend a couple of good ones if you want to connect.

Investors can gain access to the mls ( a limited version) just contact the Sac mls and talk to them about it.

Best of luck

Hi my name is Dustin Rose. I've been investing in Real Estate since 2004. I've flipped homes, held rentals, negotiated multi family deals and wholesaled a few properties.

My passion is cash flow. I invest a lot in the mid west. I'm looking to network on this site and provide any knowledge that I can.

Wow so much great advice here. First of all good for you! You've got a goal and a dream and are taking action. Like someone said above either way this will be a great learning experience for you.

When I started investing I was in a similar situation. As so many people have pointed out above- private financing is available and if you learn to find good deals the private money isn't that hard to find.

Look into commercial portfolio loans. All the properties in your package will be required to be rented- and the lowest I've seen is a 500k minimum- usually 1 million- but it's a great way to bundle several properties together.

Sounds exciting. I wish you the best in your new venture. It's a bit scary to get into an investment where it's sink or swim. The reason being sometimes you will buy the property even if it's not a good investment because you feel it's your only choice.

If you don't mind me asking what purchase price are you buying the complex for and what are the monthly rents of the other 3 units? Also what are the expenses- taxes, insurance, water, sewer , garbage, etc. Can you perform maintenance yourself and manage the property yourself? If not what is the cost of property management?

You're asking the right questions and have done an amazing job of due diligence of the area( by actually moving there lol)

So i'm excited for you. I would assume by all the research that you've done that you're getting a good deal- just curious about the numbers.

Remember if the numbers are good finding private financing will be very possible.

You have a great plan- stick to it. Yes it's very easy to leverage your money and own more property. However when you leverage you also create risk for yourself. So you have to determine if risk is something you want to live with.

Let's say instead of owning 2 properties in cash you leverage your money and own 4 properties with a mortgage. Well now let's say that all of your vacancies in these properties come up at one time. That means you have to pay 4 mortgages, holding costs, taxes, etc. on 4 properties. Now that will make you lose sleep at night.

If you stuck with your plan of owning 2 in cash and they both go vacant- well you don't owe a bank anything. No worries

Like one of the gentleman said above if you're going to leverage your money and still want peace of mind, find a mentor who has done this successfully and can help guide you through the process.

Couple pointers if you're going to leverage

1- Don't buy property that is older and will have big maintenance issues. Replace the plumbing, electrical, roofs and HVACS's up front. This isn't very expensive and is worth the cost up front. I've had pipes crack in my properties and had to spend 2 years worth of cash flow to fix the damage- it's worth 3-4k up front to replace the plumbing and have peace of mind. Calling out an electrician at $100 a pop becomes expensive if you've got problems with the electrical. I suggest buying properties built in 1997 and later.

2- Save! Set aside 200-300 dollars a month on top of your normal savings for vacancy and regular bills. This will give you peace of mind and prepare you for tenants moving out, evictions, repairs, etc.

My suggestion would be to buy your own assets and earn 20k annually. A private lender should earn more than 10% per year if they're charging points and the going interest rates for hard money is 11-12% per year where i'm at.

You can buy 8-10 of single family homes or duplexes in a variety of areas like Indiana, Ohio and Michigan that are priced at 60k in decent areas. After paying your expenses and mortgage you should be able to net 3-4k per house annually. The advantage is that you're also paying off 8-10 of your own assets and in 10-15 years you can literally own a few of them out right. This of course all depends on buying the right properties in the right areas- so you will need to team up with someone who is trust worthy and can help you execute this strategy.

Same thing with lending your money privately. Team up with someone experienced and trustworthy if that's the way you decide to go- always remember that real estate investing is either Gambling or Investing. Every deal has the option to be either. New investors lose their money when they don't seek the advice of an experienced successful investor. Use other peoples learning curves to lower your risk.

I like Ohio markets the best. Texas is great for multiple strategies of rentals that can also be flips.

HI Steven,

Look at every property as a separate business. The property needs to be able to support itself and put an acceptable return in your pocket each month. Make sure to calculate all possible expenses. Taxes, insurance, property management, vacancy, repairs.

Many investors make the mistake of underestimating the repairs and vacancy. Always plan for 2 months vacancy per year and set aside 200-300 per month for expenses when they arise.

In many cases you won't have 2 months vacancy every year or need all the repair money- but it's the right way to run the business. I've had pipes crack in my investment properties, tenants ravage the place when they move out etc. Just prepare- it gives you peace of mind.

Also don't buy older houses unless the plumbing is replaced. It only cost 3-5k to replace the plumbing in a house. It's well worth it up front. I always replace the plumbing, electrical, roofs and ac's on properties if they're 20 years or older.