All Forum Posts by: John Roeder

Looking at the equity in my primary residence Im wondering if what I see is too good to be true. Short and simple but without the pertinent details...

The setup:

Due to great appreciation during the last few years in the Orange County, Ca market, I now have approx. $300k in equity in my primary residence. 

The big question:

Is a 10-15% CoC return with a rental property obtainable? If it is realistic, then i am wondering if it would be a good idea to sell my house and invest the approx $300k in rental properties at 10-15% (2500-3750/mo return) I could theoretically live mortgage free as the investments would pay the mortgage for my next primary residence.

I ask because I am about to purchase my first rental (out of my savings) and per my numbers the 10-15% seems easily obtainable, but since I dont have the 1st hand experience yet, I am wondering if I am I missing something.

Could this work?? 

Cash flow. Thanks for the info

Great points, I appreciate the input

Great thanks!

Hey guys and gals,

I am ready to pull the trigger on my first investment property. But just looking for any words of wisdom before I do. I found a great city in the suburbs that match my wants/needs and my niche. But I also have a great metropolitan city (>500k people) that also meet my wants/needs. Any advice for a long term buy and hold investor on one or the other? The 'burbs or the city?

Great, appreciate the breakdown.

Ned,

It would be in addition to other savings I have. I have saved 20k for an investment property that is totally separate from my other finances.

Thanks Trevor! Good point about having too much saved.

Hey guys and gals! I am a newbie and after tons of research I think I have narrowed down my market. I am excited to purchase my first rental and I am at the point where the only thing left to do is pull the trigger, but I have a few final questions I wanted to bounce of someone with experience. In terms of allocating part of the rent to vacancy/repairs/cap ex, what if I took it all as cash flow instead of saving it because I already have approx $5000 for those events already saved up?