All Forum Posts by: Rich S.

My initial goal is $10,000/month. My hope is a combination of SFH, MF, STR. Healthcare is the wildcard... as who knows what it will be in 10-15 years when this can be a reality.

In my opinion, the bottom line is if the entire marketplace acted like the host did, nobody would trust the platform.  The "I forgot to change my pricing" is a horrible excuse... the dates are 3 months away and the reservation was in place for weeks.  Like others have mentioned, just a poor way to operate the business from my perspective.  I'd be interested to do an experiment.... If they host would have honored it and made the guest aware, I will honor the price, my mistake... how would the review have been?  What would that review have generated for business?  It would be interesting if you could test this out both ways and see where you end up.  If a resort canceled your stay a month after a reservation was made and a few months before your travel, as a customer, what would be your expectation for compensation?  

I think the key here is to figure out what your priority is.  All of the folks with rental properties are looking for a tenant that pays on time, takes great care of their property and doesn't become a hassle.  First and foremost I would prioritize those in your business... which is most important?  Secondly, as has been mentioned, put her on a month to month if you are worried about it, this way it is a quicker exit if needed.  Third, raise the rent to an amount that is just above what she is paying now with the late fee included and fourth increase your late fee.  For me, I'd want a tenant that takes care of my property first and foremost.  Then I want to be paid on time... lastly I hope tenants aren't a hassle.  This is a business and at times it has to feel like a job.. so there will always be some kind of hassle.  Find your happy place and what that takes and go from there.  I'd renew this tenant to a month to month and keep her all day long if she takes care of the place.

My first thought is if you are still comfortable with your goal and want to quit, quit your 9-5.  If you aren't, then don't.  Goals ebb, flow, evolve all the time.  Kudos to you for being so close to acheiving that one, but rarely someone as motivated as you are to get to a goal, will be satisfied where you are.  Is your job something that if you gave it up you could never get it back?  I think very often, folks worry about quitting because it can be forever, when in reality, if you are any kind of productive and reliable in your career, you'll always be able to find a job.  The standard we accept in the workplace in today's world is staggeringly disappointing... so anyone who is worth a darn will always be able to find work.  The folks screaming leverage-- yes will provide cash flow, but you will be very insulated from market conditions if you are paid off.  In tough times, you can always aquire debt to get through... if crazy leveraged and market conditions get bad, fast, many folks have no choice but to sell or let go of properties.  It doesn't mean either is wrong, it just means you are trading slower growth for security.  

Great thread... original poster has to be thrilled.  You have 2 of the biggest hitters on this entire site chiming in and it is pretty rare to find more knowledge than you can with those two plugged in.  Kudos to @Jay Hinrichs and @J Scott for contributing... as always. They are both showing you what advantages getting a license could get you.  

It basically just comes down to numbers.  If keeping it makes you $300/month(I'm using middle figure), but it means you keep all of your other debt(calculate how much that costs you per month) it will give you a relative idea of how it affects your monthly bottom line.  If you sell the house and can pay off all your other debt, that will give you another monthly bottom line.  Lastly, if you sell, pay off debt and reinvest for cash flow, that will give you another monthly bottom line.  That is a simple way to look at it.  There are things that come into play like how much will it appreciate?  Do you ever see yourself wanting to move back?  If you really can pay off all the other debt in a short period of time, you could possibly sell and invest all the profits.  I think it comes down to WHAT you are looking for, what your goals are.  I think it is best to look at it with your goals in mind.  If your goals are just to do what makes you the most money, find the solution that makes the most profit or cash flows the best and go from there.  Good luck. 

These ideas and models aren't going away.  I don't know about anyone on here's area, but Rodan and Fields is exploding in my area with the same type of structure.  From what I know it is makeup and skin care in that one.  It is like any other business, those who really work at it and see things others don't see have a chance to be successful.  It is like how the guy across the street and the RE investor see the dilapidated house differently.  The guy across the street sees and eyesore and is bothered by it.  The RE investor sees opportunity... the reason they differ??  Their motivations and goals are different.  There is no doubt MLM is a tough business to make money in, but so is RE if you aren't motivated, don't do your homework and don't follow through.  To each his own, but I don't think it is fair to tear one business endeavor down because you favor another.  And furthermore, just because there are lawsuits, doesn't mean it is fraudulent.  There are plenty of great folks, no this site, who did nothing wrong, but were sued and have lost.  

Won't there always be a niche for people to work the low volume, run of the mill areas? I live in rural MN... the type of places where a handshake that is trusted means way more than a fancy approach or number. I think there will always be a place for the average Joe RE investor, but those places are less and less. I do agree the REI is tougher and tougher for the small guy because of these types of programs, the growth of syndications, etc . It is becoming like many other businesses, the folks running more volume with smaller margins will keep carving out a bigger and bigger piece of the pie.

These threads always surprise me. There are MANY folks on this site who's best and greatest financial vehicle is RE, yet the advice is always overwhelmingly conservative. Do you need to know how to manage money to really be successful in real estate, sure, but investing may be the best way to create cash, to get the financial house in order. Say you go the saving route--- OK I can knock down all my iffy debts if I work at it for 2 years and also save $200 per month on top of that. So say you go that route.... you have $4800 in cash saved and now down to bare bones debt issues.... good spot to be. Now say you roll the dice and find an investment... Say you find a house for $100,000. It rents at $1,000/month... house payment of $750/month... payment/taxes/insurance... sure, margins are a little thing for Capex, vacancy, management... but if you do that yourself and all goes well, $250/cash flow per month... PLUS the money you are saving and paying down your other debt... best case scenario, 2 years later, $4800 from saving.... $6000 from cash flow... 2 years of mortgage paid down... and 2 years of RE experience. Yes, I am assuming best case scenario, I know.

If you found a flip for $50,000, put $20,000 in and sold for $90,000, now you have $20,000 in say 6 months... along with $1200 from savings... so if you go the route of the tortoise, you have $1200 at 6 months... if you go the route of the hare, you have $21,200.... 

Are you taking a risk by investing, YES and it doesn't matter WHEN, you are taking a risk.  If you have a million dollars in the bank or $5, you are still taking a risk.  Having more savings allows you to survive landmines, but it doesn't guarantee success... a 2019 Mercedes and a 1990 Chevy Impala both get flat tires....   Your determination, process, experience will determine your success.  Seek advice from folks you trust, find someone to learn from, but make your own path.  No matter what you pick, it is yours... it will have bumps, it will have mistakes, but as long as you keep going, it will have victories.  Too many people are too worried about the risk to get started and to me, that is a bigger travesty than rolling the dice and failing.  Best of luck

If it were me... if they are good tenants, add a month @ a premium price as long as they allow showings of the property that last month OR same price.. have to be out by the 20th and cooperate with showings.  This way it is easier to get new folks in when they leave and gives you some time to fix/update anything that needs it.