All Forum Posts by: Mark K.

@Clayton Mobley, what about the homicide rate in Birmingham?  I have one single family home on Vassar Ave and my tenant tells me she hears gunshots at times.   

I pre-ordered my copy about two weeks ago.  I sure hope it arrives soon so I can read it!

No. of Recommendations: 0

@ Caleb Heimsoth, one thing I forgot to mention is that I'm currently saving roughly 60% of my pension.  I just started one very PT job that pays not much, but I can put all of that cash either in savings or pay down a mortgage. 

Part of me says if I currently have close to $17K in annual positive cash flow, after expenses and vacancy's, repairs and cap ex held out, that I should pick up another 2-3 house to get that cash flow over $25K. 

The other part of me says to pay down and off the $36K mortgage and HELOC, and then get more rentals, perhaps paying cash for them. Or, close to paying full cash if house is $45K or so.

I put at least 20% down on each. I have two with 5/1 ARM's and two with fixed rate, 30 year mortgages.

The mortgages are roughly $36K, $70.5K, $75K and $162K.

I'm retired with a pension and I have 2 PT jobs. My wife is still working FT.

I also have a HELOC with about $20K on it.

I'm 50 years old. Currently, I'm paying a tiny bit extra on each mortgage. I'm building up a cash reserve for each property. And, if I had an expensive emergency, I can get the funds to cover it.

So, I'm trying to figure out my best game plan. Do I try to pay off the $36K mortgage quickly, say in 2-5 years?

Do I just continue to pay a little extra on each one.

Do I save so I can pay cash for a BRRR house or maybe a $45K renovated, move in ready house or do I take that same money and just pay off the $36K mortgage?

@Kevin Konrad, my oldest son is a LTJG in the USCG and my youngest son is a firstie at the USCGA. Congratulations to you on the Naval Academy. I'm a retired ETC USNR.

As you know, in 2 short years when you become an Ensign, you will be making good money. I know an Ensign in the CG who bought a house in Pensacola, as he's in flight school, and he's making good money using it as an AirBNB. 

Both of my boys invest in stocks. My oldest son is now in Hawaii. When he's back in the continental US, I'm going to help him either house hack or to buy a rental home. 

I'll do the same for my youngest son when he's ready to be a landlord. 

If you were my son, I'd say keep the rentals you have, start a Roth and buy good, quality companies and once you graduate, then look to buy a rental home depending on where you get stationed at. 

Feel free to message me if you want more info. And, I'm not too far away from you if you want to meet up sometime. 

I do now have 5 rental units and I'm buying a 6th, so I can talk with you about stocks and real estate. 

I bought my first SFR in 1/17. I bought my 2nd SFR in 12/17. I bought a triplex in 5/18 and now I'm buying another SFR, in a different area, and expect to close on it in 8/18.

So far, I've been using my cash for the down payments. I'm now toying with the idea of using a partner and/or wondering about using equity in one of my properties to get another. 

Or, maybe I just use cash again. I'm still new at this as well. 

I'm working on getting my 6th door as a rental unit. Once I close on that, I'll have 3 single family homes and one triplex. 

I met with a friend today and he asked me about partnering up on a deal. To generalize a bit, lets say he is the money person and I'm the hands on guy. I'm local and he's a few hours away.

What sort of partnerships are the most common on deals like this? Things I'm wondering, would be, is it fair for the money person to fund the down-payment in full and the hands on guy to do the management of the property?

What about a mortgage? If one is used, whose name does it go in?

I know Brandon and others have mentioned using a partner quite a few times in webinars and podcasts. However, for those of you that have used partners, can you explain how you do it?

Thank you. 

Wow, who is the lucky person that got that great deal on Vassar for $45K?  ☺️