All Forum Posts by: Lee Cruz

Who visits Winnipeg for fun? Lol just kidding glad you had a good time. I have a duplex. Mostly single famlies now. The tenant profile is much higher for single family homes in my opinion. 

My rentals generate $1300 to $1600 a month for a 100k house. In todays dollars if they were paid off that would be $1000 a month rounded down. 20 would be 20k a month split between my partner and i. Thats todays dollars. 

I like single families because i can liquidate if i need to. Harder with an apartment complex. I'll always have expenses. Property management, taxes, insurance, repairs etc. That i know. What i mean is, id rather have 20 units paid off rather than have 100 units leveraged equaling the same amount of cashflow income. More units, more problems. More tenants more problems. I understand taking 100k to pay off my 100k property i lose opportunity cost in buying more properties, but at what point does one say enough is enough? For a simple guy like me having a large cash reserve and 10k income a month is a pretty good baseline. 

But im open to your suggestion, maybe you can sway me the other way. 

 All my properties are local. 15 minute drive for me. At how many units sis you retire? How many do you have now?

oh I don't plan on stopping, at 20 properties I plan  on actively paying them down. By the 10th property paid off the portfolio can start paying them down itself. I plan on buying until my brain cant put a deal together 

Early 40s investor here with 6 sfr. I plan on retiring 15 years from now. We can buy 4  sfr a year with a purchase price of 100k each and brrrr each one. Plan on stopping at 20. My partner and i make 150k a year each. 

Plan A: is to get to 20 single family houses in 3 to 4 years and start paying them down or

Plan B: start paying them down after 10 next year. We would be able to pay one off every year. But keep purchasing the 4 a year till we get 20.

I understand the argument of just keep buying more money with leverage with cheap interest rates, but we like the idea of free and clear. Less stress, less risk is more appealing to us. What are you retirement plans and any suggestions about mine? Thanks. 

I understand this is more a real estate forum and all, but with the market where it is anyone invested the stock market? As RE Investors we buy on fundamentals, but my question regarding stocks which are companies we absolutely need in any market? Which companies have the big cash reserves. I pulled out my cash out of index funds a couple years ago to buy real estate, dont regret it. But with this fire sale, im looking to jump back in. What stocks or indices are you guys looking at?

If this post doesnt adhere to the rules, mods may delete.

@ Evan Polaski

Im hoping it doesnt come down to that. The market im in is pretty stable for the most part. Really not sure how its going to turn out. Last week during rent applications i had over 80 inquiries and a dozen applicants. 3 i was really debating on who i was going to pick (nice problem to have) as they all had solid incomes and were families. That indicates to me the viable tenant profile is still strong.

@Marc Winter @ Dan Heuschele

Thanks for  your reply. Im at 75/25 ltv at 30 year amortization. 180k appraisal leaving 135k mortgage and 45k equity. Rent $1250 cashflow $400.  Pulling downpayment and renos as i bought low and renos were cheap. All the older investors i know swear on paid off properties. They laugh at the leverage model. I agree to an extent, but during the growth phase i need the power of leverage. My first milestone is 10, marinate for a bit and maybe 20. Im single family house kinda guy. Median homes around here is $300k

I posted this in JD's thread but got lost among the masses

Ive just started a couple years ago. All ive done is brrrr. I have my 5th unit about to brrrr in a couple weeks. With this low interest rate, im thinking great. I typically buy at 50 to 60% of the arv. 25% equity position day 1 after refi. Cash flow $400. I have 10k in cash reserves per property. I also have another business with more cash reserves. Am i doing something wrong amidst this downturn? Serious question really. I feel i can leverage and brrrr up to 10 then start paying them off. What would you more experienced investors do in my position?

Ive just started a couple years ago. All ive done is brrrr. I have my 5th unit about to brrrr in a couple weeks. With this low interest rate, im thinking great. I typically buy at 50 to 60% of the arv. 25% equity position day 1 after refi. Cash flow $400. I have 10k in cash reserves per property. I also have another business with more cash reserves. Am i doing something wrong amidst this downturn? Serious question really. I feel i can leverage and brrrr up to 10 then start paying them off. What would you more experienced  investors do in my position?