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All Forum Posts by: Masud Khan

Masud Khan has started 6 posts and replied 28 times.

Post: How did you buy more rentals without crushing your savings account?

Masud KhanPosted
  • Rental Property Investor
  • Washington, DC
  • Posts 28
  • Votes 21
Quote from @Adrian Smude:

1) I've done a 1031 exchange and it was the right move for cashflow at that time.  I decided to do it because I did this simple math.  I took my NET profits of selling the 1 house and found my NET cashflow on that property.  it was a 5.6% return on my equity.  I knew I could make much more than that with mobile homes with the land.  I calculated I would need 7 mobile homes with the land and my cashflow went up 857%
I'd suggest doing this math.

2) This strategy scares me in today's market with interest rates fluctuating so much.  I've been getting more and more calls of people struggling to to be able to refi.

3) I'm not against a HELOC while in growth mode, but I know many people that overnight lost these and/or the balloons came due and they couldn't refi out during the last recession.

A few of the strategies that allowed me to grow really fast and successfully are investing in single unit mobile homes with the land for the goal of CASHFLOW & doing performance based notes so my private money friend/family got a higher return but brought all of the money.  


Let us know what you end up doing and how it works out :)

 @Adrian Smude - any suggestions on how I can learn more about using OPM (other people’s money) to fund new deals?  I’ve got plenty of friends/family who have expressed interest and we can avoid high rates from traditional financing.  Also, which markets did mobile homes work for you?

Post: How did you buy more rentals without crushing your savings account?

Masud KhanPosted
  • Rental Property Investor
  • Washington, DC
  • Posts 28
  • Votes 21
Quote from @Jerry Lucker:

I flipped mobile homes in parks for cash with profit margins of 50% to 200% consistently for over 20 years. Enough $ to buy at least one rental property outright with cash every year. Started with $10K

 @Jerry Lucker - Are you doing the fixes yourself? Are these mobile homes in your area? I would most likely be investing remotely so would need a team on the ground to help acquire the property and coordinate the fix. What locations have worked for you?

Post: How did you buy more rentals without crushing your savings account?

Masud KhanPosted
  • Rental Property Investor
  • Washington, DC
  • Posts 28
  • Votes 21
Quote from @Dominick Johnson:

I am doing option #3 right now, and close on a rental next week. I'm using conventional loans, with a HELOC on my primary for the 25% downpayment. It's a slow and steady process, but cashflows a lot in my situation, and I'm able to payoff the HELOC in about 6 months. My units cashflow $600/month minimum, so 7 doors will fund the downpayment of $50k for a new one each year. Once I reach enough SFH equity, I'll 1031 those into an apartment building or some other small commercial property.


Dominick- did a lender approve a 75% LTV loan on an investment property with your 25% coming from a HELOC? Most lenders I spoke to require 25% come from my savings/cash. Was this a specific type of lender, i.e. HML? Also, curious on Which markets are you seeing positive cashflow, even at current 8% rates for traditional financing?

Post: How did you buy more rentals without crushing your savings account?

Masud KhanPosted
  • Rental Property Investor
  • Washington, DC
  • Posts 28
  • Votes 21

Looking for advice on growing my rental portfolio without crushing my savings account in this market.  I have two rentals, both cash flowing and purchased 3 years ago with 25% down and at the record-low interest rates.  Looking to expand my portfolio of rentals, but minimizing eating into my savings account for a 25% down payment each time.  For those who have successfully moved from 2 properties to a third and fourth property, what strategies worked for you?  A few options I hear (on paper).

1) sell the existing units and 1031 into a larger unit property. This is the advice in every textbook, but hard to stomach in this market because the cash flow is good and interest rates are low on the current property.  I would like to keep those and expand my portfolio.

2) Find a fix and flip with 100% financing, using a HML. Then refi into a 30 year.

3) Achieve 100% financing via a HELOC from equity in the current rentals? Not sure a traditional lender would offer a mortgage on 80% unless I bring 20% down.

Any and all suggestions are welcome!

Post: My first ever 44 Unit MF apartment closed in Dec. 2020

Masud KhanPosted
  • Rental Property Investor
  • Washington, DC
  • Posts 28
  • Votes 21

@Yosef Lee how much did you put down out of your own pocket?

Post: Anyone seeing the 2% rule and where?

Masud KhanPosted
  • Rental Property Investor
  • Washington, DC
  • Posts 28
  • Votes 21

A while ago I read the BP book on managing rental properties and the author mentioned the 1% and 2% rule as being solid measures for evaluating a deal.  

My question for all of you buy and hold investors, in anyone hitting the 2% rule? If so, in which US markets?   

As a reminder the 2% rule = monthly gross rent/purchase price

Cheers!

Post: Out of State for 1st Deal- Alabama or Ohio?

Masud KhanPosted
  • Rental Property Investor
  • Washington, DC
  • Posts 28
  • Votes 21

@Denis Woosley thanks for sharing the guide!

Post: Out of State for 1st Deal- Alabama or Ohio?

Masud KhanPosted
  • Rental Property Investor
  • Washington, DC
  • Posts 28
  • Votes 21

@David Robinson thanks for the input. Are you seeing opportunity with SFHs or apartment/multi family in those markets?

Post: Out of State for 1st Deal- Alabama or Ohio?

Masud KhanPosted
  • Rental Property Investor
  • Washington, DC
  • Posts 28
  • Votes 21

@Michael P. Very niiiice! Since you are from DMV like me , I’d love to hear how you got started., Any way you can share your story on how you got started? I’ll try and sending a message. Cheers

Post: Out of State for 1st Deal- Alabama or Ohio?

Masud KhanPosted
  • Rental Property Investor
  • Washington, DC
  • Posts 28
  • Votes 21

@Remington Lyman great recommendations and article. Thank you!