All Forum Posts by: Payton Pearson

@Darius Kellar That's a 26% yearly ROI with potential to increase it up to 37%...

I'll do some quick numbers for you:

$37,000 down.

Yearly Income: $9480

Yearly ROI: (9480/37,000)*100 = 25.62%

When I increase rents to market rate of 525/month apiece, that will increase monthly rental income to: $13,620/yr

New Yearly ROI: (13,620/37,000)*100 = 37%

Accounting for electricity, trash, and gas: -175/month... Still gives a return of around 30%.

Please tell me, where do you know of better places/properties in which to invest? I'm new to this and am still learning.

@Kyle Schlosser Thank you, and yes it was MLS. It was also put on Zillow though, if I am not mistaken. I know it's on Zillow right now showing pending. We had to pounce on it because there's a fair amount of funny business going on with real estate agents here in the local area. Good deals aren't on the listings for very long.

@Nicholas Cangialosi What I did with my parents is they gave me 41% of the down payment. Therefore, I am paying them 41% of the profits each month. I never reduce what I give them, because I made a promise to them. However, I manage the property and can/will increase rents to market rate when the current tenants' leases are up. I will then take the extra cashflow.

But there are other pretty straightforward ways you can get money from your parents. You can offer to sweeten the deal on a lend/loan they give you. For instance, my parents just gave me 10k toward my next home, but they don't want to invest in their 2nd property just yet. So I told them that once I get all the money from them, I will pay them back 11k within 90 days. That's 10% return in 3 months. Now, this isn't much compared to what some other people will offer/charge, but I'm helping my parents with a great many other things with respect to their finances right now.

@Nicholas Morgan I live here now, and plan on living here for at least the next 7 to 10 years. I'm originally from California.

@Lacey Anne Saggio Thank you, and congrats to you as well!

@Cory O'Dell After that, it's about halved, but the building has been recently updated in many regards, reducing CapEx and other things. This is a long game. I didn't get into real estate just to make money; I also want to revitalize and make beautiful buildings. Though, of course, dollars and cents are the only way to make that possible.

The reason I say that is because money put into these buildings is not necessarily an expense to me, but rather something I want to do.

@Ryan Proffit Jocko Willick, the former Navy Seal? I've listened to him a few times, but haven't subbed to his podcast. I really like the guy, great motivational speaker. If I ever got the chance, I'd love to pick his brain.

@Shiva Bhaskar He's based in Cincinnati, but will do mortgages pretty much anywhere in Ohio, I'm sure.

@Eddie Espinal Unfortunately he's not on BP, so it'll have to be through email.

@Grant Rothenburger Sure are! Both in the Kettering/Oakwood area.