All Forum Posts by: Michael LaPlaca

Thanks Sean. This is great feedback!!

@Brian Levredge. Small world! We talked when I was Chat driving around looking at properties. I remember you saying you were originally from So, Cal. Cheers buddy!

Thanks for the heads up on AIrbnb. I believe you can still go that route if it's your primary, and  rent out the other rooms. That's a ways away for me anyways. But even with the rents I should be make a few bucks each month.  Crazy I know, but immediate cash flow isn't the main motivation behind this play. Maybe living here in SF past few years has made me delusional with homes gaining huge values in a city of high demand. Even at $500K in 5 Points, I think there would be room to run. This Airbnb in Germantown I stayed at, has gone up $100k in less then 18 months according to the owner. I was priced out in Chicago when the Wicker Park and Bucktown neighborhoods were going for off. 14 years later it's even more built up. But that's here nor there, and I'm just shotgunning ideas off those of you living in it and doing it. Seems like a jobs are being created, especially in the health field sector. @Carrie Carlton, you stated your norm is to buy and hold. Don't you think in 5 years the investments will be worth it? I think slow and steady will win the race for you.  

I just returned from 2 weeks of looking around the Nashville and Chattanooga area. Considering both cities for my next move. I absolutely fell in love with both cities! Being from the mid-west originally, it immediately felt like home to me. The people are incredibly friendly, and eager to help. I knew things were taking off in mid TN,  but I couldn't believe what's happening in Nashville....it's everywhere! One area I found, the developer said he's got a 100 people waiting list for homes that aren't even built where they purchased empty lots. Not a bad problem to have, and great news for the locals who are still holding their properties.  

But I'm curious to any thoughts about the 5 points area, and Germantown as to future appreciation. How much more room is there grow? Is $700k out of the question for a duplex or SFH? I saw a few properties I'm considering in the $450 - $500k range, that I would look to get doing a 1031 exchange. My initial thought is to airbnb them (duplex) possibly move into one a few years down the road. Right now the rents don't offer much as far as cash flow goes, and I'm okay with that, and will make it work. But I'm definitely not going to pay someone to live there, whiled I shoot for the moon, haha!

My goal is to do an appreciation play, and also get some cash flow properties. I'm selling one property I own in Chicago, and plan to refi another and use the equity for smaller purchases. Chattanooga seems like it has both to me, but Nashville is a place I see living in, and then down to Chattanooga when it gets to crowded. I think the 5 points area, and Germantgown are great locations, and still has room to grow as the city continues to develop. 

That's just my two sense as a part time investor. So, what ya'll think?

I'm coming into town this weekend for 4 days.  Would love any info on multi unit properties, 4 units and more. Any feedback is much appreciated!

With the Zaggots already established, a few areas under redevelopment, and a new NHL & NFL teams coming to town. I'm considering Las Vegas for my next investment (multi unit).  Curious to any feedback. 

@Bendan Harrison thanks for the words Brendan! I agree I should use the equity to buy more properties, and take advantage of the lower rate. I'm refinancing the Chicago property to fund a 5 unit I got under contract this afternoon! With the lower rate my payment goes down $150, and I can pull out $50K . I'll most likely do the same with the condo later this year for something else. 

Great advice! I've thought about Austin as a possible future investment. But a little more focused on the Dallas area. Any thoughts as far as comparing the two cities for investing in multi unit properties? They both seem like winners. 

Thanks for the replies. All solid advice for sure. Kind of overwhelming with all of the options. Not a bad problem to have I guess, haha! But I'm not sure I understand @Thomas S, what you mean by my equity is killing my cash flow. My mortgage on the condo is $800 + $357 for HOA, and I rent it out for $1800. Tanya mentioned a unit selling in my complex (Prospect Point) sold for $470. I owe $135. What am I missing besides not charging enough in rent? Same goes for the Chicago place. My note is $2450, I pull in $3200 in rent. Both properties generate positive cash flow last time I checked. But I am interested in learning from your experience.

Hello, I'm brand new to BP. I just started listening to the podcast, and very excited in learning from anyone willing to share. I currently own two rental properties, and my goal is have a passive income of $100k in 5 years. My current properties are in good shape & in good locations (Chicago & Summit County, CO by the ski resorts). They both yield $600 monthly a piece ($7200 yearly) after mortgage and bills. I know it's subjective depending on your situation/goals. But I could use some advice on cashing in on my equity, or using some of my own earnings ($355K) to finance the next deal(s). Ideally I would like to purchase an apartment building with 6-12 units in Dallas, Vegas, Nashville, Atlanta, and maybe the Carolina's. But open to duplexes or 4 unit properties that makes sense...and money of course!

I currently owe $135K on the condo in CO., and can conservatively get $440K for it without a realtor. I'm not looking to sell it though. But if I took the monthly positive cash flow and put it towards the principal, it would be paid off in about 14 years, and would yield over $25K a year. So you can see there are many ways to use this vehicle. I can pull some money out, and still generate a couple hundred dollars each month, or hold it and leverage my Chicago place which will never get paid off (owe $276K - appraised at $470). My initial thought was to sell Chicago, and 1031 exchange it into the apartment building. My lender is telling me they can lower my payment by $150, and take out $55k to use. That, plus 2 units are long over due for a rent increase and could be generating about $400 more a month. 

I'd appreciate any advice on how to achieve my goal. Or basic investing guides to live by and be successful when there's a good amount of equity built up.