All Forum Posts by: Masa Don

Thought this might be a good topic in these declining times. . .

The question is how much of your real estate investments should be leveraged?

Meaning red hot and ready for investors to snag up all the good deals, good and bad, bad being I don't have enough hours in teh day to reasearch all the deals!!!!!

Thanks Jon I really appreciate it! And I agree I think the Denver area is on fire right now! We didn't take that huge movement like California but we still got hit which puts a bunch of properties in positive cash flow! And like you I am long term as well, I have not taken any cash from the property yet, nor do I plan on it.

My plans are to keep my real estate completely separate from everything else that I do, so therefore any dollars in go right back to the biz.

My investment strategy is to put what ever money I can personally into new units but then the goal is to never put money in again for that particular unit. So one day I am hoping that I will no longer have to put personal funds into my real estate account and I will be able to simply watch the well oiled machine do its thing.

Do you think this is a profitable strategy given the Denver Market?

Jon! I know you wrote this a while ago but I was researching this 50 2 thing and you just clarified it! Thank you, and just to make sure I am understanding I have a duplex 130K purchase price, loan $800 including insurance and pmi ect. in payments, I get about $1600 rent right now (I know it is not ideal because I am not getting the $100 per door but thus far the place has treated me decently) So I make the 50% rule but not the 2% because I am able to get 50% toward expenses, but not the $200 cash flow in the door. Am I correct on these assumptions?

Here is my question and I think you have posted this before, but if I am doing all of my own repair work then we are closer to 40% or so, and then this IS a positive cash flow property. Granted it still puts me only at the $160 but for my first true real estate investment this is decent?

Ok so lets say that this particular place is a D in all aspects except location I would put it at a B- C+ somewhere in there, and lets change the rent as Jon said to $500 including fix up what would be a good offer?

I guess my main concern on this place is that they have all the same utilities meaning that the landlord will have to pay ALL utilities (unless there is a way around this?). What type of liability is that? I am thinking with these volatile times utilities could be a huge damper on profits! What do you guys think?

It is in the denver area, but in aurora, I figured low because I don't like to over estimate.

I have stumbled across a place a guy is selling it is B2 zoned, 5 units for 200K, residental rents should pull about 500 ish per unit, what are the oppourtunites for utalizing the comercial side of this? If this is a good deal how do you go about converting to comerical (at least appealing to comercial) and advertising? The leasing I am sure is quite different. . . thoughts?

Yea, I was thinking they were really high on the price, it isn't quite gang land but it is ghettos, the upside to it which I don't think comes close to the downside is the growth potential. But thanks for the figures guys!!!

1b/1b units 8 of them, not great shape not great area, 300K, rent will pull in $350/unit but all utilities are on one meter, there are currently only 2 units rented, like I said not a great area. I know there is a lot more to look at but what would you say is a reasonable offer? Clearly NOT 300! How would you present the offer? with numbers explaing or simply offer and assume they have to understand they are asking way too much?

TV, concering, wireless internet . . . cake walk, your only worry would be the tenants taking away your bandwidth, but if it brings in a few more bucks you can always pay a few more bucks for more bandwidth.