All Forum Posts by: Philip Sanders

Hey @Nathan Roberts thanks for the advice, I will check into that! 

@ Peter McDonough  what do you think average rent for the area is?  

602 Eastbrook Ln, Huntsville, 35811 4bd 2ba Full brick Auction $50,000.00

Does anyone know this area?

Rentometer says the average rent is 985.00 per month. 

Just from seeing the pics I know it needs 2 new bathrooms. 

I'm not in the position to make a deal now, but if anyone would like the contact info for a showing just send me a message! 

Thank You very much for your insight 

@Peter McDonough

I bought a house on Pine Ave in woodlawn subdivision. It's right off 14th Ave. Very close to Stove house.

I was wondering what your classification of that area would be ? 

Also I have a question regarding price on rental houses. 

I have had TWO property managers from the Decatur area tell me they target properties in the 150k price range as rentals?  To me that sounds to high, I'm thinking if someone has 1500 a month to pay rent, they would just buy a house. 

Thoughts ? 

Many Thanks !! 

@Jared McCullough

I like how you used your strategy as an example of risk tolerance. 

I'm guessing the one paid for property is your back stop (to some degree) on the other two if they are vacant/late rent ? 

@Tim Whiteundefined

Thank You for your insight. Good point about keeping prices low and bringing value to the neighborhood.  I don't like multi-families because the turn over is high, and it always seems to be in a bad area and tenants that pay late rent. 

However, if you did a few high end flats near downtown, i believe you would have entirely different clients.

Thank You @Mike D'Arrigo That is a relief to know. 

Thank You @Tim White !!  

Very true on risk tolerance. I love that you mentioned about augmenting my risk by doing a few flips!  I have a friend who is a contractor and we have been discussing a partnership on flipping. 

How do you feel about multi-family ?  I'm against them because the only ones I know of are in bad areas. But maybe I don't know the area well enough. 

Very True!  I agree. 

I think there is a middle point for each individual.

One strategy I like is, getting multiple properties (6+) and after 10 years you can consolidate, sell your laggers and use the money to pay off your most profitable ones. 

I'm against the "buy all you can" and just live off the cash flow. It just seems like too much juggling, ever heard the old saying "too much sugar for dime".  For example, if I get 100 dollars cash flow off each property, I would need to have 50 properties to make 5,000 a month. And talk about RISK.....that is allot risk. 

Thank You Joe. 

Good points.  I agree. 

However, most banks will not loan you anymore money after you have 4 mortgages.  Then you have to go to portfolio lenders or hard money lenders which charge you higher % rate.  

Which,  with the prices in my area, the math wouldn't work at a higher % interest from a portfolio lender. So it's very likely I would plateau at 4 mortgages and not be able to go farther until I pay at least one of them off. 

Hello Bigger Pockets !! 

I have two rental properties, one I have owned since 2008, and One I purchased last month. But I'm finally going to invest in this idea all the way !  

I love all the information on this website as well as the podcasts. I'm looking to connect with like minded individuals in my area ( Huntsville Al) to learn from and lend a helping hand (sweat equity). 

My goal is to have passive income that I can use to invest in more properties and eventually quit my day job. 

My Question: 

Is it better to pay off the mortgage in full, and use all the cash flow from that property to pay down your next investment property, and repeat. 

OR 

Like the book I read "How to invest in rental properties" is it better to just finance as many as you can and let the tenants pay them off over a period of years and use the extra cash flow to help pay down the mortgage.

Second Question: 

SFR or Multi-Family ?

My area is North Alabama. It seems to me that the majority of Multi-Family are in bad neighborhoods. I had a tri-plex once, in a bad area of town and although it made money, it was more headache than it was worth. 

Thank You for Any and All Advice/Criticism