All Forum Posts by: Ola Dantis

Totally agree with @Paul Moore and I think Self Storage and Mobile Homes don't get the same attention as Apartments because people, in general, don't really understand the asset classes, unlike apartments everyone gets the concept rather quickly. 

Pretty interesting to see Sacramento on the list... 

From all your three options, I'd suggest you go for 1 only OR 1 and 3. 

If you are able to save up cash for the sole purpose of investing then that also gives you more time to really learn and educate yourself about the particular investment you will be making in a year or so. 

If you decide to go with the hybrid model of 1 and 3 then you can essentially leverage the loan option of your 401k and then pay yourself back while all saving up some cash for new investments. 

Remember, cash gets attention so if you have the discipline to save a lot then you can make some deals happen. 

Looks good! 

The before and after pictures are like night and day! Kudos to you

If I understand you correctly, you add $300 to the mortgage after all expenses and reserves set aside?

If your answer is yes, then I'd say absolutely do it. I am guessing this is a duplex so most times, you won't be living completely free but have to pay some of the expenses, most notably the mortgage. 

This is a good start, as you would be saving a lot of money now that you are only "paying" $300 for the mortgage. 

You will be surprised to see how quickly your account starts to grow! 

A lot of CA money is pouring into the midwest turnkey space right now; however, there are inventory issues with certain markets. 

As a result, some investors have considered other asset classes. For instance, the self-storage and industrial spaces are doing quite well right now. Just a different perspective! 

Always a fantastic idea to set aside a reserve for the unexpected. 

Also, what I'd recommend that you add to that is a home warranty for the property since it is an SFR, you can get a Home Warranty for like $50-$100 per month so if and when you get a big-ticket item you can use the Home Warranty instead or in conjunction with your reserves.

You can never be too careful when it comes to unexpected expenses! Congrats on the close. 

For our large multifamily assets, our third-party management company tries to follow our business plan by instituting the 3% rate escalator every year. Now, with everything going right now, the property management isn't as aggressive with the rate increases. 

This is an interesting question!

For the smaller assets (residential): I rarely raise rents especially if the tenant is good. 

For the largest assets (commercial): We normally do upon renewals. 

It's a double edge sword because if you keep the rents too low then you are not with the market AND if you raise too high then you may lose tenants. Balance is key! 

Your enthusiasm is absolutely contagious and very much needed for anyone looking to last long in this business!