All Forum Posts by: Kate Szeto

@Kate Szeto welcome to BP. For me number one is learn to underwrite. How else can you tell a deal from a dog. Number two is don't believe the numbers in a listing. Get your own numbers wherever possible-new insurance, new property tax etc. Include PM cost even if you are going to manage. Don't even try to manage unless you have learned how and know your local LL tenant laws. Three, Just because the property is off market does not mean it is a deal. You need to always be able to evaluate  the offering. Four, always have enough money in reserve so you cannot be forced to sell if the market goes sideways and know your market rents! I could go on and on.

Four years ago we bought a 12 unit, opened a separate bank account and deposited 50k into the account. We collect all the rents and pay all the expenses out of that account. There is 420k in that account now minus the original 50k leaves 370k. And the property value has more than doubled largely through forced appreciation. My wife and I have other rentals as well which she manages. Bottom line know the numbers and know what you are good at.

Here's the most important answer to all of your questions, but first you must answer this question:

"Do you want to be a collector of money, or properties?"

If the answer is "properties", then I don't have an answer.

If the answer is "money", then the answer is simple...."don't buy properties that won't cash flow in the first place".

There's no trick, just math.  "If the math doesn't fit, you must quit".