All Forum Posts by: Patrick Snyder

 What's going on with the duplex?  Did you overpay or is it a tenant issue? 

1st Choice Real Estate would probably help you out!

 Definitely makes a difference! 

I usually do. Sometimes I'll paint the interior a different color as well. While it does add extra time and cost, I think it's worth it to have a more finished looking project 

Welcome! You're in the right spot

@Jalen De Leon

There are growing cities in just about every state. I think if you're searching for your first and plan to acquire many, it might benefit you to look at areas with steady growth, near a relatively good sized city, and a state/city where your taxes won't be a huge drag.

@Liam Kingon

Best crash course you can get is the Personal MBA by Josh Kaufman.

It'll apply to everything business related, including real estate

@Bill Ham

@Joe Villeneuve

It's simply too easy to give examples of why one does not equal the other, and why one isn't necessary for the other. Think of all the businesses that are based around being the middleman, in both real estate any a myriad of other sectors.

If I pay a bird dog $100 to fund me a list of houses and then sell that list to Joe for $200, and I have 5 bird dogs doing this every week, and I have 5 different investors to whom I sell those lists, I have $2000/month with no equity.

If I rent a house for $1500/month and sublet that to you for $2000/month, I have cashflow with no equity.

When I was collecting houses in 2008 to 2013, I had plenty of properties that were under water but still cashflowed. I had a 3 unit that I bought for 90k in 2006, and was underwater until 2018, but it had good cashflow. Negative equity, but positive cashflow.

Ideally you want both, obviously, but sometimes a great deal comes along and it only gives you one.

@Bill Ham

Equity does not equal cashflow. Creativity and problem solving can and do, but equity alone doesn't guarantee cashflow. I know plenty of people who have bought properties and have had immediate equity, but have lost money. These same people think because the house is "worth" more than they owe, it should produce income, but that's just not always the case. It's not difficult to create income streams without equity, in real estate or other business ventures. And, in some cases, equity can be a liability to which many people are adverse.

@Bill Ham

There's not much of a relationship between the 2 as far as I can tell. People

Have cashflow without equity all the time, or even negative equity. I would

Bet that there are people who overpaid for real estate, autos, and other equipment in the last year that they rent out for cashflow. I'm sure there are also products out there that are of little value that can produce cash even day, month or year (bicycles, tools, etc) .

The most successful investors find the diamonds in the rough, fill a need and add value to create both, one for short term, and one for long term. But idgaf about equity if my cashflow is high enough, and I would guess most others wouldn't either.