All Forum Posts by: Kevin C Means

 But can I do it from WA? Is there a 'plug and play' option? 

@Shiloh Lundahl--Oh yes, of course. I am normally a gambler, but this is a new world and not that I have more to lose than anyone else, but I don't feel like taking a bath on my first go at it. 

I am looking at Detroit as something that I know might cash flow (C+ neighborhoods) with a savvy investor that will mentor me; and an Arizona option which won't cash flow right away, but the appreciation will be outstanding. 

Choices, choices...lol 

@Shiloh Lundahl--We are from WA state and do not have the capacity to do these kinds of deals easily, unless there is a turnkey program to plug into. Of course, it is a good way to invest--Buy Low/Sell High. 

Thanks, 

@Josh Young--I agree and have been looking at some properties in and around the Casa Grande area near the 10 and McCartney, and Florence Blvd. 

Tell me, do you think that it would be more advantageous to invest in a new build or a fresh rehab for 50-75k less? I would have to pencil it out, but does a new build attract rents that would far outweigh paying so much more? 

I like some of the places I am seeing in Florence and Coolidge as well...I appreciate the discussion, and agree with you that cash flow is not everything, but it is nice when it works. I bought the home in which I live back in 2020 for 705k and recently had it appraised for 1.135m, so I know how important growth can be, even if something does not immediately CF. 

Hi Travis—yes, still trying to look at everything. 
Currently have a team in AZ willing to sell and manage, but the houses are new build, 300k, no CF, but also in a super growth area of AZ. So, I can eat negative CF and gamble on raising rents, and appreciation without repairs due to being a new build and warrantied for at least the first year. 

Also still pondering Detroit, but even that does not CF. Not when I have to borrow 100% of the purchase price.

If I want to enter the market now, and be happier looking back, not asking, "why didn't I invest sooner?"--which is what I am saying to myself now--then I have to accept some negative cash flow, or wait and save. 

If I am diligent with my spending (not easy to do with 7 kids) then I could squirrel away 3-4k per month with my W-2 income. That being said, is it better to set that aside until I have enough to do a DP, or a Detroit deal, or do I get in now with the HELOC, and pay off the negative CF with the W-2 money?

I am stuck in this middle area where people say, "do not do a deal with negative CF (and I love this part)--Just do get a deal". If I want to get in while others are sitting on the sidelines, but I have to eat a couple hundred dollars with my W-2, then would that be more beneficial to waiting? I'm just not so sure. 

I'll take another look at a few things and reach out. 

WA State, looking in AZ. 

So, do nothing then until I have saved enough to use cash for the DP? If I save $4000.00 of the cash flow I have from my W-2 job, long enough to pay for the DP, that would be 18 months. If I purchased something today, using my HELOC, paying off my HELOC for the next 18 months with that W-2 money, wouldn't I be ahead? What will the market do in the next 18 months?

Is that scenario the same? Why is negative CF so scarry when I have the income to cover the debt? 

Ken McElroy says sell off all of your non cash-flowing assets; the market is not great; I must invest out of state; and I only have a HELOC, costing me 8% to use as a down payment. What the heck do I do, who do I trust, and what is the best bet other than to wait and do nothing?

There is not a deal out there that will cash flow for me, but I am afraid that if I do not get in now I will regret it later when everything goes up, as it always does. 

Should I find a deal that comes as close to zero as possible, even paying for negative CF with my W-2? Would that ensure that I get something before things get even more risky, and cash flow is even less achievable?