All Forum Posts by: Mark Trebor

How much equity do you have in the 6 unit property, or how much money could you pull out if you refinanced it out?

If you want to grow fast its all about managing your leverage, if you are truly cash flowing $2600/mnth the money should pile up pretty quickly.  When I and my two partners started out we bought 3 houses pretty quickly.  And then had to slow down we buy about 1 to 2 houses every year we now have 19 houses and cash flow $8000/mnth.  But when you divide $8000 by 3 its really not that much money, its a nice second income but we're not quitting our W-2 jobs anytime soon.  Fire away with your questions sounds like we have similar paths.

I rent primarily to college students and I have found tubs work better then showers, for some reason the bathtubs do a better job of catching more of the water from the actual act of taking a shower.  When we have used shower pans and just curtains lots of water winds up on the floor around the shower area and causing other problems.  I suppose if I put in glass shower curtains it might stop this problem but that's not cheap.

I think your range looks good.  I never pay more then 100 times monthly rent for a house.  That number works for me in my area and interest rates below 5.5%.  I budget 23% of revenue for maintenance and operations.  I rent in a college town and typically have a waiting list for people to get into my properties so I never factor in vacancy issues either.  I self mange with a heavy dose of skilled plumbers and maintenance people.  Good luck

How much does unit 2 rent for?

All of my properties held in my name or in my business name pass through my LLP and the depreciation is captured in that entity. I have never done a Fannie or Freddie loan so I am unfamiliar with the seasoning rules with them.

Maybe I'm missing something but I think one of your goals should be increasing your income above 12K/year.  Are you a student? is that why you are working part time?

If you don't have income how do you plan on getting a loan?

What is a creative financing deal?  Sounds like a generic infomercial sales pitch.

Dude you're fully committed?  That info is provided over and over again in these forums use the search feature and start reading.

Where I rent adding a bedroom increases the rental income about $450 a month, which adds about another ~40K in value to the house.  Tossing up a wall and a door if you're doing it yourself should be less then $1K so I say go for it.  If you're looking to sell it as a single family home when you are done you might want to think about what you're doing to the floor plan by adding the bedroom.  If it's just going to be a rental then I would not be as concerned with that.

Not sure how this slipped through the cracks but I just saw the message this morning.  Hopefully you had a good turn out last night.  Hope you plan more events in the future.