All Forum Posts by: Rob Hakes

look up HipCamp.com

People do it all the time

@Marty Calhoun

If it is the LDS church then no they will not cosign.  They certainly have the means to pay rent for a year, but it sounds odd they they would make a one year commitment.  Im sure that they see this as an extreme circumstance where they feel they need to make sure they can get this tenant into a safe area   Typically the church would take it on a month to month basis to make sure the individual was doing her part in trying to stand on her own two feet and better her situation.  If she bolted after a month or two then don't expect to see anything from the church.

2021 Update for year end:

Original Property (same section 8 tenant) - Cash on Cash return of 6% or 11% if i don't count principle paydown as an expense

2nd property - Cash on Cash of -6% (negative 6%) or -1% if i don't count principle paydown as an expense.

Certainly nothing to write home about for the cash on cash return.  2nd property had a bad tenant turnover.  we rented it out again quickly but had to repaint everything and quite a few repairs.  Basically didn't have much cash from these properties to reinvest, but didn't have to dip into my own pocket for expenses.   

On the bright side.  Cant go wrong owning property in 2021 right?  Appreciation seems really good especially on property 2.  If i were to sell for even close to what some comps are going for, then the windfall would heal many wounds.  As of now im going to hang on to these, keep it passive and see what the future brings.

Kiyosaki and RDPD was great to propagate and popularize the ideals of generating passive streams of cashflow.  I believe his actual legacy ends there.  Since then he's just been a charlatan of whatever will bring him eyeballs while riding on his laurels of RDPD.  As he always says "there is always 3 sides to a coin", and he is definitely on the fringe.

Also don't forget to calculate ROTI (return on time invested). If you care about free/personal time, don't marry yourself to a part time job and do a long term rental with a good PM. If you have the time to spend, then shoot for the high ROI, but expect more work.

@Nicholaos Koufoudakis

Do you have the ability to set up a Series LLC in your location? this makes it easier to set up each entity on your own, and some banks are well versed enough to make this work. I have Series LLC set up so if i add a property the bank can fairly easily create an account for each series. Again, locations vary on this for sure

@Jonathan Diaz

The properties are easy to manage.  Its the people (tenants) that are a b#*!?...... bugger.

@Asia Jones

I've purchased some partials from @Chris Seveney and they have worked out great so far.  They have been passive, steady, and quite boring (just how i like it!).

Its defiantly a good idea to do as much due diligence as you can on the seller if you are looking at doing a partial or a note fund.

If it goes non-performing you need to make sure you can trust the person who will be responsible for getting the note re-performing and you need to understand the contract so you understand how the event of a non-performer should play out.

I would definitely put Chris in the upper echelon of note investors based on my research and experience.  He is one of the few that is crazy enough and knowledgeable enough to get his hands dirty at a high volume in this scary investing niche.

He is typically very busy so don't worry if it takes him a day or two to reply to emails ;)

@Jason Watt

Things have been very stable with these properties still.  Both tenants are up for renewal within the next months, so that will be telling on how all that goes.  If cash flow is your only metric, then these may not be the best investment just because how thin the margins are with purchase prices and tax expenses going up.  

I definitely think that overtime these will be a good one for me as it seems all of the run up in housing prices continues to push up the value.  Of course the Zillow estimates has them at about a 25% increase over the 3 years i have had them, but even if it were only a portion of that it looks pretty good.

@Frank Visaggio

I dont know your exact situation, but i think it would be tough to be at a negative income after depreciation on a househack.  only a percentage of the mortgage counts against it.  If your are renting out 25% of your house then you can only write off 25% of the expenses including mortgage interest taxes and insurance, and the principle portion of your mortgage cant be written off.  POssibly though if you were renting out a bigger portion of the house.  

If you are trying to make it a legal MIL apartment, then alot of municipalities dont want it over a certain percentage.