All Forum Posts by: Nic S.

@Dennis Wayne Your internal fortitude is impressive. I think I have the same drive, I don't like giving up when I believe what I am doing is what's best for my family. It's making sure that I am being stubborn for the right reasons and not looking at things through rose colored glasses. 50% of the properties I own are in my daughters name (LLC) they'll be for her eventually. How long did it take you to start seeing light at the end of the tunnel? What did you do to get to constant cash flow? I consider myself pretty resilient but I don't know how I would've reacted when tenants started dying in my properties! Cheers to you, brother!

@Arta Montero I'm curious about your PM experience too. 

@Ryan Copeland not my initial investment but the money from the the rehabs. 

@Caleb Heimsoth I'm also in the stock market but I don't like it as much as owning property. Plus the tax advantages aren't as great. 

@Natalie Schanne I'll start having a larger reserve baked into the purchase fund. My mistake in not putting aside a bigger pool of money, I underestimated the costs. I did score good deals, I've raised rents 11% since purchasing and should command 13% higher rents from the rehab units over what previous tenant was paying. Thanks for the encouragement! 

@John Teachout each property was purchased off market and I should have been more measured for sure. They were all purchased as buy and hold 10%-15% under market value so I am grateful for that but you're right the better performing properties aren't able to keep up with the under performing properties because volume is high right now. I have stopped buying properties until these are stabilized. 

@Dennis Wayne  @Mike Dymski  @Marco G. @Mark Cruse   man I needed to hear this. 

Renos after the tenants are out. 2 renos I was expecting the 3rd I was not. 

@Theresa Harris all good questions; nothing is wrong with them per se. All the fixes I knew about but I didn't account for bad tenants and rehab costs. I have had to rehab 3 units in the past 2 months costing ~$12k total, this unexpected costs has caused me to lose money. I didn't have the $12K saved in reserves which is why I'll be at a net loss in 2020. 

@Bill P. the units cash flow once I get past this capex stuff. not a bad idea, thanks for taking the time to comment. 

@Marco G. I'm at 75% occupancy now and my portfolio still cash flows. You bring up a good point, I'm in a cash crunch due to unexpected vacancy and underestimating rehab costs. I am dipping into other cash reserves that originally we're intended for RE. 

At 100% occupancy it's going to take me 6 months to recoup my capital which isn't ideal but not the end of the world. It's a tough pill to swallow. 

@Sean T. Appreciate it! And thats what I tell my friends and family, the desire to get out of a W2 has to be greater than the desire to be secure but under someone else's employment. 

@Joe Villeneuve Thanks for the feedback! I have thought about 1031 exchanging a portion of my portfolio in 2021. I want to take advantage of the cost segregation studies I've done and tax benefits of ownership in this upcoming tax season.  

@Joe Villeneuve I think I'm following you. I guess some more context will be helpful, I purchased these properties at a negotiated rate due to these foreseen issues. Me fixing these problems is what is causing operating income loss. The one key thing I learned was to not inherit other people's tenants. I will not do that again.

 Are you suggesting I sell and walk away? Or continue to fix and dig myself out of a hole? I'm trying to follow what you're saying.