All Forum Posts by: Michael J. Beasley

@Joseph Cornwell that makes a lot of sense. I’m going to follow that model. 

Great advice guys. Thanks for this. I won't respond to each comment, but I've read each one and I'll be taking this advice into account when I finally get my first deal going. Thank you!!

@Raul R. I’d love to hear more about your analysis when looking to buy

Hello, People of BP!

I want to know how those of you who are out of state investors do it. Do you actually travel/drive/fly to do a walkthrough on the property before you make an offer? I feel like that lapse in time could jeopardize a potentially great deal. However, it seems woefully irresponsible to purchase sight unseen. Looking for some advice here. Thanks!

@Mike Carr he would manage it better than anyone I’m sure. 

@Chris K. I messaged you 

Interesting…  I was just having this conversation with my uncle 10 minutes ago. If you buy cash, you lose out on your ability to write off the interest toward the loan which would show you more income at the end of the year and thus you’d pay more in taxes. Also, when you buy cash you have to pay for the entire property with your own money vs. having your tenants pay for the bulk of it. With a loan, even though the property ends up costing double in the long run, only a fraction of the purchase has to come from your pocket as long as you run the numbers before purchasing and you get a good deal. 

Before buying, I’d recommend using the calculator provided by the BP site and see what your cash on cash return would be if you purchase outright. After you factor in taxes, property management (if needed), repairs, vacancies, utilities, whatever is leftover is yours to keep. If that number (your cash-on-cash) is at least 12% of your initial purchase price, you should be looking good. However, typically if you buy cash, that percentage tends to be lower than if you borrow. But it all depends on your goals.

Take this advice with a grain of salt. I’ve never invested, myself. But I’m getting closer to it. Just been reading and listening and watching everything I can before I make the leap. Someone more experienced and qualified can go ahead and shut me up whenever they feel ☺️

Hahaha I’d be lying if I said my love for the Office didn’t have any part in my reasearch of Scranton. 

I called Parasole but didn’t get the chance to speak with Ron over the phone. Not sure if it’s an unreasonable expectation, but I’d like to speak with the owner before applying for their services. 

Hey all! This is my first post. New to the REI community. I’m thinking of purchasing rentals in Scranton, PA, but have had a hard time getting an owner on the horn to talk about services, pricing, and my expectations. Any referrals or suggestions would be greatly appreciated!