All Forum Posts by: Mike Richter

Tiger, is the addendum addressing max repair costs that you're suggesting to be used primarily as a litmus test to see if the seller is willing to play ball if there are reasonable repairs to be made?

So I take it that your current strategy is looking to make the needed repairs, rent the property ASAP to start generating cash flow and then live in a 2 BR apartment or some similar minimal living arrangement for you and your daughter? 

Unless rents are extremely low in apartments in an area you'd be comfortable renting in with a teenage daughter, you may end up in a tighter situation than you're currently in when considering repairs, moving costs/stress, potential for future repairs with tenant in place, and liquidity to get a tenant in place.

This could definitely be a time for creative solutions like taking a withdraw of principal from a ROTH IRA, or good old-fashioned elbow grease with a second job or freelance work for extra liquidity to get you to a more stable arrangement for you and your daughter.

From one father to another, you will find the way to make things work and take care of business: it's what we do.

A question I would have is: what do you expect to cash flow if you were to accomplish the fix, and how would that cash flow contribute to your living situation? 

There seems to be an element missing here. Is there a reason that you need to move which prevents you from continuing to live in the house and seeking roommates as Mark Gallagher suggested above.

If I were single and starting from a property underwater that could generate significant positive cash flow, I'd live in a tinyhouse or some other similar meager living for awhile to pay off consumer debt, pay the repairs off and build up sufficient reserves to support the house. 

Let us know if there are any other details. 

@Anthony Brown, welcome to the community! How have your adventures in San Angelo fared? It would be great to meet up with people in the local area and find ways we can create value together for our mutual benefit.

Hello everyone in the BP community! I'm Mike Richter and I live in San Angelo, TX; originally from Los Angeles, CA. I'm serving in the Air Force at Goodfellow Air Force Base where I teach teachers how to teach and develop course ware. I'm married with two awesome kids. I want to come home and be with my kids as much as possible; I see Real Estate as my ticket to be home and more intimately leading my family to create value through service.

I've been investing in turnkey SFRs for the past two years on the retail market, I'm now looking forward to acquiring property on the wholesale market. I'm interested in wholesaling and cash flow investing.

My current goal is to acquire my first multi-family commercial property. This is building toward my definite purpose of completely replacing my earned income with passive income within 5 years.

Justin,

Welcome to the area! We really need to come up with putting together an investor club here in the city, since the nearest one seems to be out in Midland. I'm primarily a cash flow investor, but also do wholesaling.

Have a great day!

Mike Richter