All Forum Posts by: Paden Anderson

Hey Saul, 

I would like a quote on a sprinkler system in Ogden. Please shoot me an email and Ill send you the info. 

Thanks, 

Paden 

Another strategy that has been on my mind that I want to run by you guys is... I have friends killing it in Crypto and stocks and other asset classes... Ive thought it would be sweet to set up a few properties where those cash flows go directly in other asset to sit there for long term. I can only imagine if the average person used rentals to fund their other investments they could get the best of both worlds when they retire and be pretty well diversified. (disclaimer- this money these rentals give would have to be looked at as long term buy and holds and higher risk as its not my specialty and I cant even time the real estate market let alone a stock market or crypto/blockchain). ;) 

Great thread guys! Thank you for all your comments. Its very helpful. I agree cash is king but man it does feel good to be in a position where you don't owe anybody a penny and have large amounts of cash flow coming in every month. If a property sits vacant for a month or two, who cares. Our financial goals definitely come in seasons. 

After this thread my goals are to keep the properties at a 30 year am and save my cash, conservatively purchasing other multi family deals that meet my parameters until my loan lines are maxed (in this market this could take years). Then I will work on the buy down phase while adding properties here and there. Once you have 10-20 properties paid off with cash it doesn't take long to purchase more. Patience is key.

Hey Thomas, congrats on the purchase! I don't think that is a bad plan. You could also look into refinancing it after its fixed up and pulling out some of your costs so you have nothing in the deal? Especially if you are sitting at 50% LTV. My two properties are sitting around 70% LTV. We just have our cash in our checking/savings accounts. I should look into other avenues that are less risky but still liquid with some sort of return but havent seen anything that caught my eye. The stock market is way too inflated at this point in my opinion. Where do you others put your liquid cash?

 Thanks JD. We would like to own a lot of real estate but are ok with waiting as well. Im hoping for a more favorable market for investors within the next 5 years. Im in the position to buy now but are just letting the numbers determine.

 Thanks JD. We would like to own a lot of real estate but are ok with waiting as well. Im hoping for a more favorable market for investors in the next 5 years. Im in the position to buy now but are just letting the numbers determine.

 This is a good point as well. All our properties are multi family and if we are 50% vacant then all the debts are still covered. We also have multiple years of cash reserves saved if needed. We are trying not to get wrapped up into the hype of this market with all its appreciation. If only I had a crystal ball ;) 

Thank you all. This is helpful. 

I am leaning towards building larger cash reserves and getting a few more properties under my belt and then working on the debt buy down with more cash flow. I agree the yields will be much greater however there is a nice piece of mind to properties paid off, more cash flow with less tenants. That will come however. 

Thanks. I just subscribed to his work. 

@Edward B.

Thanks for your reply. I keep all my properties on a 30 year fixed but run the numbers on what it would take extra to pay off in 15 years and can pay that if desired. Then if things get tight I can revert to paying it at the 30 year schedule. BUT... I think this is not the best option. I am 27 years old and can be much more aggressive for now. I make good money with my job, live in our rentals for "free", and can save 12-15k a year on rental cash flow for more properties or investments. We are already sitting on a good chunk of cash but I struggle finding anything that meets my criteria in this market. I guess patience key.