All Forum Posts by: Niles Treber

@Daniel Alegre 

 Yes these are the nightmare scenarios that keep pulsing through my head. You nailed my biggest fear besides vacancy: a bad roof. Its expensive and it cant wait. Otherwise the damage and expenses just increase. Thats the first thing im going to ask the inspector about.

Im thinking of taking a medium risk approach: which I suppose would be putting a little more down on each property to allow a little more monthly cash flow to cover unexpected expenses. It may mean spending more of my immediate cash on higher down payments and sacrifice using it on down payments one or two additional properties right off the bat. But im thinking its worth the piece of mind.

Thanks again for the perspective!

@Elizabeth Colegrove thanks again for the advice. What your saying about LLCs seems to be what most seasoned people on here are saying. Im also going for a buy and hold strategy. Im not worried about heaps of cash flow now but I just want to make sure I have enough to cover my expenses. I know I can acquire more properties by financing and hanging on to my cash for more down payments. Im just worried that if I spend all my cash gobbling up properties then what do I do if a couple rentals go vacant at the same time and I cant cover the payments. I guess Im just trying to find the sweet spot with risk/reward. Its tempting to think of just buying a few properties cash (I recently got a decent sized inheritance and consider myself blessed) and instantly having a few grand in cash flow. Then saving that for downpayments on more down the road. At the same time if its better to take more risk and finance more properties now it seems the benefits are by far better down the road a bit. Is my line of thinking somewhat on the right track with this?

@Daniel Alegre 

Thanks for the confidence boost! I have a million questions I feel like I need answered before I make my first move but I feel like what I really need to do is just dive in and buy my first property. Maybe you figured some out yourself and help me out?? lol- Just a few things im wondering: Should I start an LLC before buying my home? With a lump sum of cash and a buy-and-hold strategy, would it best to finance as many as you can? Pay for half in cash then finance the rest to reduce risk? Finance the first few and pay cash for the rest? My goal is to retire and have a cash flow of at least 8K a month after the mortgages are paid. Now that Ive established my goal, Im just trying to figure out the smartest way to get there!

Thanks again for the tips you gave!

Niles

Hi again BP!

I'm a noobie from central Florida who's still figuring out my goals and the strategy to get there. I'd like to get your thoughts. Would you recommend visiting with a local CPA, real estate attorney or any other professionals prior to making my first real estate purchase? Id rather get it over and done with at the beginning than get a couple properties in and run into headaches. In your experiences is it worth the investment to meet with these professionals? Or can I get the same knowledge through my own research?

Thanks!

@Paul Timmins 

Thanks! My instinct is telling me to just start with a small SFR and then go from there. Multi-family seems like such a good idea but even that makes me worried Ill be a little in over my head. HUD homes and foreclosures are something else that sound very appealing but to be honest at this point it sounds intimidating. I wish I had a background in real estate since it would probably alleviate some of my fears. I work full time and im learning everything I can through books, podcasts, and forums here on BP.

Thanks for the advice to attend some REIA meetings. I think Ill do that!

Niles

@Jeremy Roll

Thanks for taking the time to give me some advice Jeremy! My goal is hopefully to retire in 10-15 years and be able to live off the cash flow Ive created. Itd be great to create some now, but it seems the more I take now, the less greater benefits Ill have in the future from my investments. Maybe in the meantime acquiring enough for a few (modest) toys I can enjoy while Im still young will satiate me. haha

Im wondering how many properties Ill need to get an 8-10K a month cashflow once theyre paid off. Figure Ill start small on a SFR as close to home as possible. I wanna use the money to meet my cash flow goal at retirement and hopefully do it without too much risk. With the money Ill be getting I think I can do that. (300K) But Im still working out a strategy on the best way how.

So far I imagine myself taking the more "active" approach you mentioned. Although thats just because thats what Im more comfortable with having such limited knowledge of other avenues.

Thanks again for the wisdom. And anytime you wanna offer more, Im all ears! :)

Niles

 Thanks! Im just starting on the podcasts but ill skip ahead to your show and check it out. Thanks for the link to the spread sheet as well.

@Hattie Dizmond

Thanks for the words of wisdom. Im getting started on the steps you gave me!

 Thanks! Your goals and strategy sounds similar to what I have in mind. Me and my wife both work full time as well. My concern about putting %20 down is not making enough cash flow for expenses, repairs, etc. Is there a certain percentage of rent to profit ratio that is usually recommended?

Thanks!

 Thanks Hattie :) Im trying to determine the best way to go about acquiring the properties with the cash. How much to put down? Pay cash for some and finance some? Finance all and hang to cash for repairs, etc... I understand that by putting the minimum down it leaves more money to be able to make down payments on other properties. But the less I put down, the less difference between the mortgage and what Im getting for rent. Which is a  scary thought. I think I have enough to acquire the amount of properties I want to start getting the cash flow I want once they're all paid. But am scared of stretching myself too thin financially in the meantime and losing a house. Im sure these questions have been asked and answered on here before, so any links to other forums would be great too :) Thanks!