All Forum Posts by: Peter G.

Yes I appreciate that but look at it another way if I have 5 properties for example all about 600$+ mortgage 100$ insurance+ about $180 a month across vacancy, repairs and CAP. That's 880$ a month* 5 = 4,440 a month in expenses now lets say they are all vacant if I am not able to get a tenant in then im screwd and right off the bat lose $4,400. Lets say I get 3 out of the 5 to move in at 1100$ thats 3,300 a month in rent leaving me at a loss of $1,100 a month. I forgot to factor in property tax wich is an additional 100+$ a month.

buying 1 house cash 100$ in insurance 100$ a month property tax 100$ a month $180 a month across vacancy, repairs and CAP looking at 480 a month. 

on 1100 in month thats 660 in profit. 

to your point about the CAP if the property is paid in cash or down payment if the cost to fix something is 10k its still going to be 10k regardless of if the house is paid for or not. 


Does that make sense?


Im not trying to argue and I hope its not coming across that way im just trying to throw my thoughts out there. 

doing this 100% as a long investment and I dont need to cash out of this anytime soon. 

How can you  say the "risk something happening to one property is high (heating system, roof, vacancy, etc.) vs multiple"

That does not make sense at all the more properties you own the higher risk of something like that happening. 

Think of it this way lets say we have a house gum ball machine and all the houses in the area that are similar condition etc are put in this gumball machine. and you turn the gumball house machine of doom an one gumball comes out. is your one of your gumball more or less likely to come out if you have 1 or 5 in the machine. 

 Yes Devin I have I have thought about that ALOT and I mean ALOT and I was very very close to doing just that. But I am in a position now where I don't think it's worth the risk and stress that comes with buying multiple houses with mortgages. I plan on sticking to the all cash every few years game plan.

Just my personal preference.

also @Steve S. I am happy with a 6-8% ROI each year on a cash deal rather than having it sit in the bank or the stock market.

 property tax is 1640 a year. Insurance will be no more then $100 a month Monday im calling the agent to get an exact number. Paying cash

 between 6-8% depending on the Repair cost over the years. Right now all I need to do is to paint one room and touch up some trim. 

Cashflow is between 600-883$ depending on Repair cost over the years

I just put in an offer for an Amazing single family house! It's close to lots of shops/ restaurants and the freeway. I really hope I get this!!! 

Details:
Market Value:$137,000
List Price:$125,900
Offer:$120,000
SF: 1,812
Rent: $1,200
Bed:3
Bath:2

Long term is my plan thank you for your advice!