All Forum Posts by: Maurice Smith

Originally posted by @Cameron Lam:

Originally posted by @Maurice Smith:

paid 369k for my 4 plex in las vegas last year around this time . collect $3225/month with a 290k note at about $1886 a month pti . After utilities Im cash flowing a little more then $1000.00/ month. I recently got an appraisal back at $430k , and was considering doing a cash out and put that money into another property. until this damn corona virus bs! now im reconsidering doing this because the vegas market right now is going through some real hard times ( just like any other service industry state). A lot of people are loosing there jobs due to the strip closing down and a lot of the major hotels and casinos and other local non essential business. I don't want to risk pulling money out and then the market taking a nose dive causing me to be upside down. I guess if you plan to hold for 10 plus years then everything should be ok. but that's easier said then done. Hopefully this is all just temporary and things go back to normal by the end of summer

And that's what I'm wondering.  Are you afraid of being upside because you're more levered in debt and if you have to cheapen rent to entice tenants to be there you might not cover your expenses?  How much were you considering taking out as a cash out? I'm thinking we only take out 26K which wouldn't be huge.

Im able to take out around 45-60k it will increase my debt from 290k to around maybe 340ish ( that's a guess) I still would be in the green, considering the value of the building. I would lose some cash flow due to my monthly payment being higher, but that's not a issue with me. the real issue I have is the uncertainty going on in this market. Its not so much fear its just that I would have a better piece of mind once the economy get back stabilized.

Originally posted by @Eli M.:

Dear BP family,

I have a potential tenant who is interested in my property. She is single doesn't have any kids and makes 3x the monthly rent. However, she has no credit history because she is only 26 years old. (never even had a credit card)

What are your thoughts? What extra precautionary steps should I take? 

Thank you all in advance,

Eli K

being only "26 doesn't really mean anything " im only 27 and maintain a 772 fico lol. in regards to your question though. your tenant pool is based off the location of your property. if you have a d/c class property then don't rely on tenants having credit as a key indicator, because many of them will not. in fact, 1 of my tenants have no credit and she is still a real good tenant who pays on time and gives me no trouble ( knock's on wood lol). Instead look at there history to see if they have any evections or collections for small stuff like " cell phone bills" cable bills" etc. this will be a better indication of them being able to keep up with simple bills. now if you have a class A/B property and the tenant has no credit then that might be something you might want to reconsider. you can also leverage them not having any credit by charging a larger deposit, in some cases. check with you local sate landlord laws first, every situation is case by case, and if the tenant is ok with it then I don't see a problem.

lol send her to junetwenty9thcreditrepair.com

paid 369k for my 4 plex in las vegas last year around this time . collect $3225/month with a 290k note at about $1886 a month pti . After utilities Im cash flowing a little more then $1000.00/ month. I recently got an appraisal back at $430k , and was considering doing a cash out and put that money into another property. until this damn corona virus bs! now im reconsidering doing this because the vegas market right now is going through some real hard times ( just like any other service industry state). A lot of people are loosing there jobs due to the strip closing down and a lot of the major hotels and casinos and other local non essential business. I don't want to risk pulling money out and then the market taking a nose dive causing me to be upside down. I guess if you plan to hold for 10 plus years then everything should be ok. but that's easier said then done. Hopefully this is all just temporary and things go back to normal by the end of summer

some situations you have to say screw the banks, Get creative with your financing. see if you can get ahold of the seller your self. If you really want the deal offer him more then its listed for to beat out competition. see if he is up to owner financing. make the down payment to him usually 20% and all monthly payments."The buyer signs a promissory note to the seller, which spells out the terms of the loan, including the interest rate, repayment schedule and the consequences of default. The owner sometimes keeps the title to the house until the buyer pays off the loan" there is normally a balloon payment after the 5th year. you then would be able to refi out into a conventional loan with the banks and pay off the balance with the equity from the 4 plex. ( best case) It wont hurt to try. check this link out, I think you can benefit from it https://www.investopedia.com/articles/personal-finance/082815/pros-and-cons-owner-financing.asp.. good luck!

im currently having the same issue, but with a palm tree. I got a bid to have it removed for under $300. not bad

how do you think it will effect the rental market? with the potential risk of people losing their jobs and not being able to pay rent? i have a unit right now i am in the process of getting ready to rent, but now im worried that this virus might make things more difficult 

everybody that thought they bought at  the "bottom" bet they kicken they selves now lol. told yall to wait, the real discounts just begun 

im 28 so I guess I qualify 1. What's your strategy? cash flow vs appreciation, find a mfh property that would pay my mortgage and put money in my pocket every month 2. How long have you been investing? started investing in crypto about 4-5 years ago, 401k and index funds about 5 years. real estate about 2 years 3. What has been your biggest lesson? have enough money put away in reserves, when it rains it will pour, well at least for me

lucked up and got both. cash flow was the priority though