All Forum Posts by: Account Closed

maybe it would help you decide if you look at your other options for locations. And compare to this one. You should be able to put a revenue dollar amount on what the difference in location is worth. then its just a cost benefit analysis to this specific location. 

Ive seen some locations, where it is truly "the place to be" and regardless of the conditions no other location compares. but in other situations, location isnt that important. Only you can put a dollar amount on what "location" is worth for your specific business plan/application. And I believe that is what you need to do to answer your underlying question.

recommend somehow having a chat room tab in there as well, would be nice to be able to have live conversations. That would honestly be used the most I bet. Would be a good way to optionally have live conversations with non-colleagues. 

@Heather Yan 2nd vote to definitely sell. Even with a selling price of 265k I would still sell, so the possible increased selling price only further shows you should sell this. you should be getting a much higher return rate then that with rentals and without sacrificing quality of tenants. Main issue is likely value of the property, its too high value to make a good return on, unless your in a highly dense area where entry level/1st time home buyer type properties cost that much. The higher you go in value, then typically the more the property is not appropriate for a rental (unless your in a place like Manhattan NY where a 1 bedroom apartment could cost that much). Very rare that you should ever allow yourself to receive less then 1% of value/month in rental income. Regardless if the property is owned outright, the money is not working very hard for you. I personally go for 1.5% of rent to value per month. Allot of the investors  here shoot for 2%. 

so unless your able to raise rents to $3k-$3.5k or higher per month then its likely you need to transition to less expensive properties, you should be able to do this and still remain in the A class to B class property types.

I donno if $100k is enough for you to see "great" results, I guess depends on your perspective. $100k would get you $500k of leverage with standard 80/20 loans. 

To be great with that 100k would be to, along the way of utilizing/spending, the $500k you pick up some seller financed properties allowing you to use less then the standard 80/20's (20% down payment loans), or maybe some of the properties you aquire need rehab which will give you some forced equity. By utilizing some methods which allow you to maximize your investment dollar and minimize the amount of down payments. Thereby possibly getting $800k or so of total portfolio value or possibly higher instead of what standard investment loans with 20% down payments will do for you.

larger the dollar amount of portfolio, the larger possible return obviously, assuming your ok with higher risk utilizing higher amounts of leverage which goes back to your confidence level in your experience and how good of a deal you find.

i have a couple SFR's and am about to acquire a duplex. My properties are very nice inside & out, very modern with good renters. Im not a slumlord by any means.

Im kinda sick of the "oh so your becoming a slumlord" or "why do you wanna fix toilets", etc.. comments from friends and various people when they hear im investing in rental properties. its like an automatic stigma from people who dont invest in real estate or anything else for that matter beside go to their 9-5 day job.

Im sure you guys get them too, whats your response when you get these annoying labels?

any good ones?

I follow dave's strategy in my personal life. ( personal residence is owned outright) absolutely zero personal debt whatsoever, which means I have to drive a 7 year old truck... im ok with that. 

However when we are talking about how we invest in real estate, different story. I like mortgages, loans, etc.. and having only 20-40% equity in a property, keeps the cash on cash return up there. This is a business method, not personal finance... 

Im sure Dave Ramsey would still agree with my method.

@Joe Howell Welcome. Yeah the podcasts are great, I learn something new with almost every one of them. 

@Account Closed

One thing to keep in mind, the 50% rule doesnt work on low end properties. That $400 water heater costs the same regardless if you pay $100k or $10k for the house. But your rents will likely be substantially different for the two properties. This is why the 50% rule is so deceiving.

example, a single family house that rents for $500/month, 50% rule wont work, expenses will be way higher if you look at them as a percentage of rents. just something that in mind.

@Owen Dashner

Rally must of been giving them away too cheap because the number is disconnected :) 

Took a bit of calling around but I already found one guy, Better Living Appraisal Services in CB, which will do it for $500. 

I called Michelle and left her a message. I will see what she thinks tomorrow. thanks Owen I wouldnt of pushed my banker otherwise, a local 4-plex last month for 550 was pretty good evidence to give them. 

@Owen Dashner

I received an email saying they found one for $700 that they can use... which is still the highest dollar amount and on the smallest property in this forum thread. 

lol, I emailed them what you said Owen and they emailed back if I have any recommendations on appraisers to add to their list.... I didnt think they could do that, I figured banks had pre-set appraisers they had to draw from. Im gonna do some google'ing