All Forum Posts by: Karan Chandran

An awesome question which most of us have had at some time or other! I have been investing in real estate since 2009 and all of them in So Cal. Here is my 2 cents...

I over leveraged my money from 2009 through 2015. All my properties cash flowed and I personally felt like it will appreciate as well! I felt the risk was worth it. Fortunately for me, all of them did and all my properties checked off all 4 ways of making money (Cash Flow, Capital gains, Amortization & Tax benefits)

Beginning of 2018, I felt the property prices were too high, so I did not want my money to be leveraged anymore. I started selling some of my properties since then and am sitting on cash. I feel like now is not the time to leverage or over-leverage my money. I only have a few properties and only one loan. Life is wonderful! The peace of mind thing someone mentioned is real and I love it!

I know folks that leveraged their money in real estate between 2004 and 2007 and have had to file bankruptcies after that. So, I guess what I am saying is that timing makes a difference. Leverage money when you feel that the risk of loss is less and do the opposite when the risk of losing is high!

Good Luck!

@Chad Stark Thank you for sharing your experience. I really would appreciate if you can send me where you are investing and refer whom you go through for PM. TK etc. Thanks!

Thank you @Lillie MAnon I like the idea of partnering with someone local! Thank you @Ali Boone for your good advice...the 5 income stream was a good refresher...apreciate it! Thank you @Jonathan Oh and @Account Closed....do you have any good local PM/Realtor with whom you work with in Phoenix? Thanks!

Thank you @Lillie MAnon I like the idea of partnering with someone local! Thank you @Ali Boone for your good advice...the 5 income streams is a good refresher for me...appreciate it! Thank you @Jonathan Oh and @Mike S! @Mike S...do you have any good local PM/Relator whom you work with in Phoenix?

Hello...I am new to this forum. Live in SoCal and have been investing in SFRs mostly and one Multifamily since 2009. I have sold most of my investments due to capital appreciation (yes! I did pay pretty hefty taxes but am good with it). I was looking at OOS investing including turnkey investing. I like the cash flow aspect of it but I am worried about price depreciation(I feel like the prices are too high now in 2020 at least in So Cal) and big repair expenses that could drain all the profits and put me in a negative. Also, the property management costs when you add everything up such as the monthly 8%, lease fee of 75%, renewal fee, bi-annual inspection fee, 15% margin fee on repair etc. seems like a lot and in the end, they make a lot more money on my investment than I do with little to no risk while I am taking all the risks. Can anyone with experience in OOS investing give me some advice on this? I'd like to learn more about the risks associated with this type of investing and how to mitigate them. All your advice are welcome and appreciated! Thank you!