All Forum Posts by: Mitch Rice

Welcome Ryan! We're fortunate to live in a great rental market. Even though the market is hot right now, there are still plenty of opportunities that cashflow from day one.

Thanks for the input everyone. Ultimately it sounds like there's no right/wrong answer, just different approaches. 

@Aristotle Kumpis thanks specifically for showing the flaw in my original logic on considering the $454 payment cashflow. I'll get that money back once I pay off the loan, but in the meantime could also be earning real cashflow on another property. This makes sense especially since the car loan is 1.9% APR.

I have a $16K car loan with a payment of $454 with about 24 months remaining. In my market that's also nearly the cost of a down payment on a property. 

If I treat my debt similar to a rental property, a $16K "investment" (paying off the car) would give me $454 in guaranteed cashflow. Obviously, there are no tax or appreciation benefits. It would also improve my DTI, which is starting to be challenging since I'm a new landlord.

I currently have two units and want to acquire 2 more this year. I can definitely acquire one more regardless of the car decision, but I may have to choose between paying off the car or getting a 4th property this year.

So what does everyone think? I'd love to hear opinions of those more experienced than me.

Thanks!

Nice job @Cliff Harrison!

I have a similar strategy but am about 6 to 9 months behind you. I'm closing on my second this Friday.

I think elsewhere I read that when you started you had a desire to invest in Johnson County but then moved to south KCMO since the deals seem much better. Cashflow definitely seems very strong in Missouri, but what are your thoughts on the potential for appreciation?

I'm running into the same challenges you probably did in Johnson County finding good deals so am going to start researching Missouri.

Here's my two cents. 

Don't feel married to a single agent. Looking for investment properties is very different than looking for a primary residence. You're not asking a realtor to help you figure out what you want in a property. You're providing them with your investment criteria. If they bring you something that fits and you do the deal, their commission is more of a finders fee than anything else.

An interesting duplex just hit the market. At face value, the property seems overpriced and the quoted rents seem low but it's in really good shape. Do you all think it's possible to make a reasonable deal out of this and if so how?

It's in a B neighborhood with high demand rents.

Current asking price: $180K

Downpayment (20%): 36K

Quoted rent from current tenants: $800/unit ($1600 total)

Monthly cashflow: $175

I'd also love to hear some responses to this post. I'm currently in a corporate tech job and have a strong desire to transition into full time real estate investing. Being the sole provider for a family of 4, I'm not quite sure how long the journey will take until I can fully make the switch.

Nice job!

Thanks again for all the info, gents!

@Robert Phillips

 Welcome to BP! It's a great community with a ton of resources.