All Forum Posts by: Kyle Gregory

why arent you getting financing? If it has to do with mechanics of a home, then why not try hard money lender, then go with conventional type lending?

actually no mike i was not speculating anything... I was just pointing out the different styles of investing you and john have. "At the end of the day" or in this case end of the year (and this saying is getting old!!!) both you and john have the same amount of money.... Sure he speculates on someone buying at a higher price, but you also speculate that A) you will have tenants B) those tenants will pay.. Personally I dont think John wants to get involved in the day to day operations of rental property, where as you do (btw this is the avenue i have chose to go down). So for someone with a hands on attitude, your formula is great...

Just trying to mend some bridges here :D :lol:

ahhh aint love grand? :D

so If you positive cash flow $1K a month for a year, how is that any different than buying a property and having a negative cash flow of $500 a month for 1 year then selling that property for a $18K profit?

Now here is a good question..... How much is a "good" cash flow for you?

remember cash is king!!!!

i am sure you will get MANY responses to this one so here is my 2 cents for what it is worth....

1) everyone is lookin for "BARGAINS"... look for what deals are good for you and what you want to do.

2)Talk to more "seasoned" people.. And by seasoned I mean older than someone in college. Your buddy might be a good guy and know what he is doing... But the best school anyone can go to is the school of hard knocks.

3) This comes from my education at HKU (hard knocks university) It is better to practice on rental property than your own property... Especially if you plan on buying a fixer uppper for your first property.

and lastly some advice i got from some pros in cleveland... "dont buy property, buy deals"

no issues here tim.. i did not take it personal

you could look into a 203k? if that doesnt work probably the only other option is a hard money lender, get it fixed up and refi... it isnt your best choice, but if the home is that bad it might be your only one

tim it would be moronic of me to say that ALL higher income tenants are good, and ALL lower income tenants are bad... But if I were a gambling man i would lay my money on that end, as opposed to the other end. Your odds are MUCH better. I guess my philosophy going into this is plan for the worst, and hope for the best

"One interesting thing.... People keep assuming that higher cost properties have higher quality tenants."

mike, I will NEVER EVER say there are not plenty of other expenses associated with rental property... Hell, i incur new unexpected expenses all the time, but thankfully i have factored all those into my long term plan.... Now, nationwide is in the business of purchase and selling of properties (at least that is what i get from his web site) and this is where i will totally agree with you, his properties are newer and probably have not incurred any of those unforseen expenses.... I just hope those buying properties from him factor all those in. Honestly, when i am looking at property, the only thing i calculate in my head is how much can i get it for, and how much rent can i get out of it... Which is right along the lines of your 50% rule.

Now, being from cincy i know a little bit about columbus (which is where i believe you are).... Do you think you could apply your 50% rule for property in areas like worthington?

you are correct, there ALWAYS will be headaches in this business... But you do have to admit the headaches you get from renters at the higher end of income are FAR FAR different than those at the lower end of the income spectrum!!! Mike seems to enjoy it and apparently has done quite well with it!!!