All Forum Posts by: Jon R.

Quote from @Ruchit Patel:

I am from the bay area, California too and I have been investing out of state for couple of years now with a similar goal of achieving same passive income as W2. Let's connect and I will share my experience and insights. 

Excellent, thank you.  I’ll reach out

Thanks, Paul.

Hi all,

TLDR:  I'm 50 and want to scale quickly and be FI in five years. For my first MF, should I start small with a duplex or jump straight to large MF since I want to eventually get there anyway?  I.e., is there value of learning how duplexes work before going big?  Seem like completely different beasts.

Long version:
My wife and I have had a primary residence for many years, 401ks, the traditional plan. W2 employees, stumbled on BP, listened to podcasts, got my wife onboard, got a heloc, analysis paralysis. The usual. That said, I'll be 50 next year so time to get moving.

Goals:

1) FI in five years / ability to leave W2-life if we choose

2) Greatly reduce tax burden (mostly traditional 401k/IRA $ vs Roth)

3) Have a SCALABLE / manageable business. I don't want to build a haphazard, time-sucking, disjointed business.

4) Teach / show / prove to my teens the power of REI

5) Bonus goal: Have one or more properties appreciate significantly over the next 4-5 years. I say bonus because I know I can't control this.

Strategy:

I can't say I'm passionate about MF but it seems like the most logical way for me to scale up quickly given my age. 

Next major step for me is BPCon so any feedback/guidance before then is tremendously appreciated. 

Kindly,

Jon

Thanks all for the quick input. VERY much appreciated!

Hey all,

Spur of the moment trip to San Antonio and given the short timeframe, I would really appreciate your feedback (and mercy) on where to spend a couple of days there as I check it out. I've reached out through the agent finder but I appreciate this is short notice so who knows if anyone is available. For reference, I'm planning on a 5-10 year hold on a SFH or small multi with a budget <$300K. Cash flow is always welcome but ultimately looking for appreciation.

Thanks in advance. I really appreciate it.

Jon

Thanks for hosting, Austin! Great event!

Hi Michelle,

If you haven't already I would recommend looking into Dr. Joe Asamoah's courses as well. They are focused on teaching you how to navigate section 8. I've been in his JV course over the past six months or so and have learned quite a bit.

Quote from @Beth Avedis:

@Jon R.

Hi there! I'm in my due diligence. For a property in Morganton, and was reading this post and was wondering the same thing if I should just not close at this point. The martins are pretty small and I'm concerned about a living recession which would make it almost impossible. Right now I'm looking at a possible 10% return but could be much less or negative if the market turns do you have any thoughts?

Hi Beth, I haven’t followed rental activity lately to really comment unfortunately but had read some comments a month or two ago about lighter bookings, but that was also the slower season too. BR gets a decent amount of bookings from Floridians so gas prices and opened up air travel would be my immediate concern if you are looking for a cash flowing property now.  For me, there just wasn’t enough margin to be okay at 2019 rental rates. Not saying we are going back to 2019 but I didn’t want to assume 2020/21 was the new norm. Completely depends on the unit, size and location though too.  Definitely wouldn’t do a standard 3/3!  A killer / modern 5bdr or 2bdr with a view or on water could be another story! Good luck!

Hi there,

I can't answer most of this but regarding the LLC questions, I'd recommend listening to episode 105 on the real estate rookie podcast. It's been a while since I did but per the feedback, open it in the state where the property is located. LLC's are also the first layer of protection.

Also, coming from a fellow over-thinker, and since you called it out, just make sure you are still taking action to actually secure a property. You could very well be doing this with an agent, but just throwing that out there in case you're getting stuck. :) 

Good luck!

Jon

Quote from @Holly Barrett:

For supercharged cash flow I like this rule of thumb as my #s seem to flesh out well w/in these margins:
1BR under $100K
2BR under $200K
3BR under $300K
4BR under $400K
Maybe you can go up a notch on each if you want to break even w/cash flow...so to each his own w/that.
Of course if they are being sold furnished / turnkey, I'd add in $5-10K of value (depending on how nicely furnished it is) per bedroom. 

Thanks for that. Unfortunately when I was looking, MLS listings were around double, if not more, depending on location around Blue Ridge. If I could only find the keys to my time machine. :)