All Forum Posts by: JJ P.

Is there a place that you already like going to, or is it just a numbers crunch?

Apartments.com has a really good rental comp calculator that's free.  You can keep track of the local market and make sure that your prices are in the sweet spot. 

Also, can somebody please tell me what the "S" word is?  Slumlord?

 I actually had to crack up over this.  Kudos to you for wading in.  Honestly, I appreciate it because your input made me clarify what exactly my business model is. And how different yours is. Thanks!  You brought up plenty of points that are worth noting  

It’s worth mentioning that people with enough money to invest in real estate may never have spent a moment in a Class D or F neighborhood   So they don’t understand what they’re taking on   Even more so if the whole thing was orchestrated by a $15,000 seminar on how to do it   These poor blokes are blindsided when things go south  

Most of my friends don’t invest in real estate because of the classic argument that “the water heater might break in the middle of the night.”  Like myself, they simply don’t have the skill set or desire to tackle what you’ve done   

Quite frankly, you’re providing needed housing for the bottom rung, and you’ve figured out exactly what works.  That learning curve scares me! The bottom line for me is that I like self management, (haven’t had great luck with management companies) and the less calls from the tenants, the better. 

I definitely appreciate your input, and hope you stick around 

I agree with the PAY CASH advice.  Buying with your cash saves you the nearly 9% interest that your bank loan would cost.  That's real money that you are keeping in your pocket each and every month.  I call that putting your money to work for you.  

If you end up needing that cash somewhere down the road, you have options. You can always refinance the new house or HELOC your current one, but I'd do that based on need.

Hi, please come and visit Dallas before you invest. You should lay eyes on the neighborhoods.  It will be worth every moment/shekel that you spend.  

There’s some very good insight in this thread.  
I’ve considered cashing out on our San Diego Class A ages for the high returns of other areas.  We already did that in Oregon and doubled our cash flow but stalled out on the appreciation.  Our small town Oregon houses are nice, class A, I suppose, but the economy is just tremendously different.  Our expectations had to pivot according and that’s not even when targeting/catering to lower income people. 
Class D-F purchases can be a great way to get started with limited finances, but it really is a Baptism by Fire.  We developed our landlording skills over years and made lots of mistakes along the way.  If we’d started out with challenging properties and tenants, I don’t think we’d have ended up sticking it out. 

Our Oregon Properties are insured with Pacific Casualty. SFR Rentals and vacation home. The rates are ok. We haven't made any claims, so I can't speak to that aspect.

I'd like to know your analysis of Roseburg, AJ.  It was on our radar, but it looks a bit rough to me.  

I inherited a section 8 tenant in my first Four plex.  She was tidy and paid her copayment on time.  She lived there throughout the time we owned it and probably still does.  It was a nice unit in a B neighborhood.  
It was a positive experience overall, but I’ve learned a lot since then.  In a nutshell, screen your tenant well no matter what the rental is.  Hold out for a good tenant even if the wait seems endless, because a bad tenant is the most expensive thing you can have.