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All Forum Posts by: Luke Preslar

Luke Preslar has started 3 posts and replied 14 times.

Post: Buying a Negative Cash Flow Duplex vs. SFR

Luke PreslarPosted
  • U.S. Military
  • Cheyenne, WY
  • Posts 14
  • Votes 0

@Steve Marshall thanks for the very useful input. You raise some very important points that I will need to consider as I move forward with my PCS. Wish the market was back to where it was during the crash so i'd have a much better selection! 

Post: Buying a Negative Cash Flow Duplex vs. SFR

Luke PreslarPosted
  • U.S. Military
  • Cheyenne, WY
  • Posts 14
  • Votes 0

@Dan P. Thank you for the wise advice. That is exactly why I hate speculating! Hopefully I can find something at a decent price that will not loss me money if the market does drop significantly. 

Post: Buying a Negative Cash Flow Duplex vs. SFR

Luke PreslarPosted
  • U.S. Military
  • Cheyenne, WY
  • Posts 14
  • Votes 0

@Stuart Birdsong, I would love to gain some insight from a seasoned investor in the Fort Collins market! 

@Doug N. , thanks for summarizing my situation and the feedback! I can become a little wordy sometime when i'm explaining things. 

@Eddie Memphis, thanks for the advice! That's what i was banking on... hopefully the house would appreciate and i could refinance, using the extra cash fro properties that would cash flow nicely. Thanks for your input!

Post: Buying a Negative Cash Flow Duplex vs. SFR

Luke PreslarPosted
  • U.S. Military
  • Cheyenne, WY
  • Posts 14
  • Votes 0

Greetings BP!

I have a somewhat important question to ask all you savvy investors out there. 

Situation: I am an active duty military member who will be PCSing to Cheyenne, WY; however, due to personal reasons I will be moving to Fort Collins, CO (or any area near there). With this in mind, my wife (also active duty) and I have begun looking into the Fort Collins real estate market. On average, I would say that real estate in Fort Collins has appreciated rapidly, leading to somewhat overpriced properties. I have been looking for quite a while for a multiplex that would cash flow positively, using a VA loan as financing; however, I have not been able to find this. As a result, I have also started looking into buying a single family home; however, these properties will most likely not cash flow positively either after we move to our next base. 

Question: Considering the difficulty finding a positive cash flowing property, would it be better for me to buy a decently priced house or a duplex to decrease the effect on my real estate investing?

My Idea:  

- Reason for buying a negative cash flowing duplex: Even though the property wouldn't be cash flowing positively, 1) I could still rent out the other side and have some of the mortgage paid for by a tenant and then rent out the other half when we move, 2) I could do renovations to try and increase rent (however, i still don't believe this will allow me to gain anything great in the cash flowing side since market rent rates really decide the rent prices), and 3) since the market is still going up, I could hope for appreciation and sell it when we move/ or maybe refinance (I don't like speculating though so the situation sucks in general) 

- Reason for buying a negative cash flowing SFR: I wouldn't be able to make rental income with this option until we moved after 4 years; however, this option offers 1) a higher chance for appreciation since the comps on average in Fort Collins have continued to increase at a decently rapid pace (I would use this appreciation and refi the deal, buying a cash flowing property in the future), and 2) I could do renovations to try and increase rent when we move; however this leads to the same problem as the duplex with market rent rates.

In the end, I am a very motivated and hopeful real estate investor. I know this situation is not a good idea but sometimes we have to pay the price for living where we want to live; therefore, i'm trying to figure out the best way to make my family happy but also not hurt my future real estate investing opportunities. Some advice would be greatly appreciated on this!!!!! 

Side note: As active duty military, our pay is very stable so i'm not extremely worried financially about this situation; however, that does not mean I willing want to buy a crappy cash flowing property. Also, we are looking to retire in Colorado eventually after we finish the military life, so maybe its worth buying in the state even though its overpriced right now?

Post: First Purchase Made! Multi-Unit Hamilton, Ontario, Canada

Luke PreslarPosted
  • U.S. Military
  • Cheyenne, WY
  • Posts 14
  • Votes 0

Congratulations on the purchase! Did you buy the property with all cash or did you use financing? You didn't bring up the mortgage payment in your numbers so I was just wondering! Looks like a great cash flowing property. 

Post: RE Professionals in Cheyenne, WY

Luke PreslarPosted
  • U.S. Military
  • Cheyenne, WY
  • Posts 14
  • Votes 0

@Jyll Tooker Thank you for the advice! I will definitely start looking into the social networking arena and see if i can get any leads on an agent that way!

@Corey Loghry Thank you for the great post and your openness to help a new investor such as myself! I greatly appreciate all the help I can get and will take your advice to heart! 

Post: RE Professionals in Cheyenne, WY

Luke PreslarPosted
  • U.S. Military
  • Cheyenne, WY
  • Posts 14
  • Votes 0

@Duke Marquiss

Being a new investor in the area, I am open to any and all advice/help you have to offer! I was originally looking in the Fort Collins area but it seems that it is much harder to get into that market comparatively to Cheyenne. 

Post: RE Professionals in Cheyenne, WY

Luke PreslarPosted
  • U.S. Military
  • Cheyenne, WY
  • Posts 14
  • Votes 0

@Isaac Abeyta

I'm not living in the area yet but will definitely be down with going to ICOR in the near future. I'm open to all the knowledge the real estate environment has to offer!

Post: RE Professionals in Cheyenne, WY

Luke PreslarPosted
  • U.S. Military
  • Cheyenne, WY
  • Posts 14
  • Votes 0

@Eric Jackson

Great to hear! I played a few hockey games up in Saint Charles. I was born and raised in South County (Oakville/ Mehlville area)! I am pretty new at real estate investing so I haven't been able to look in the STL market. I have family and other contacts there so STL will definitely be another market for me to look into for future RE endeavors. 

Post: RE Professionals in Cheyenne, WY

Luke PreslarPosted
  • U.S. Military
  • Cheyenne, WY
  • Posts 14
  • Votes 0

@Cheryl Packham

Thank you for the info! I would definitely be interested in discussing with you my plans in REI. Any help/advice I can receive from seasoned investors is always welcomed. Please let me know if/when you will be setting up a REI meeting in Cheyenne and I'll be there!