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All Forum Posts by: Pat D.

Pat D. has started 1 posts and replied 15 times.

Post: New Construction Road, Sewer and Electric

Pat D.Posted
  • Posts 15
  • Votes 10

@Greg Dickerson do you have any suggestions on how or where to learn more about the development process as a whole? 

When running your numbers did you factor in a monthly figure for cap ex? Without doing any math, your CoC seems a bit high for a 25% down payment on that purchase price with those rents.

Post: Goal to make $50,000/ year in cash flow

Pat D.Posted
  • Posts 15
  • Votes 10

I think it's achievable given the right gameplan! @Matt McConkey paints a pretty good roadmap of actionable steps you can take to start on the journey. If his advice resonates with you, I would suggest reading "Set For Life" by Scott Trench. It's an easy read and elaborates on Matt's roadmap above. 

In the book, Scott will challenge you to examine your spending patterns and SAVE more, pay off debts, and accelerate your earning potential rather than rely on an inflation-tracking W2 salary. That's the first step -- from there, he goes into investment strategies and ways to start generating the cashflow and returns. I've also linked to a blog post of his that paints the picture very well.

I will say, that this book and strategy is geared towards someone who is already earning a median income or higher. It may not fit your current position and if it doesn't that's ok -- there are plenty of other books and/or strategies out there that will! 

To sum it up, I would say: start trying to learn as much as possible, create an actionable plan... and MAKE IT HAPPEN.  

Blog post link: https://www.biggerpockets.com/blog/becoming-a-landlord-the-easy-way

Hats off to you @Julie Marquez for some serious creativity! With the prices of multi-family homes here I've been tossing around similar ideas -- I cringe at the 1960's duplexes selling for your all-in price of a brand new home! Nice work. 

Post: Is it time to buy rentals?

Pat D.Posted
  • Posts 15
  • Votes 10

I just finalized a deal on a duplex and went back and forth on this question in my head throughout the process. I was hesitant to pull the trigger, but ultimately, I decided that the risk of inaction was greater than the risk of future uncertainty

This was my rationale: The numbers make sense today, and the property will still cashflow with a ~20% drop in rent which makes me confident that the numbers will also make sense 'tomorrow'. I also agree with @Chandler Calvert about the rates being low -- this provides future long term cushion and better margins for cashflow.

Not to mention, a 'market crash' can't take away the lessons, experience, & knowledge gained from doing a deal today -- as long as the numbers make sense, why wait?