All Forum Posts by: Ron Flatt

Your welcome @John Humphries.  Many sellers want out, they are getting their price, you are getting a deal that works for you.  WIN/WIN  .... you gotta love Zig Ziglar

Everyone has different needs and personal goals.  It seems that you need to figure where and what direction you wish to go.  I like Dave Ramsey, which would tell you, to sell it and get debt free.  My other is author is Robert Kyosaki, which would tell you to invest.  

My personal thought is there is good debt and bad debt.  Payoff bad debt, (Credit Cards, car loans, etc.), but pay it off to help you obtain good debt.  Good debt, (obligations on assets that provide cash flow and appreciation).  

I admit I got here a little late in life.  I always wanted a nice car for my wife and wanted more for my kids than they probably needed, but I am where I want to be.  Growing my passive income and eliminating debt that is an alligator to my investment goals.  

I recommend you read both of these authors, form your own opinion.  If it were me I would sell the condo, put it in a duplex or triplex and let the cash flow payoff my student loans.  Just a thought.  Be Blest and good luck (remember that Good Luck is where preparation meets opportunity)

Unless you have a problem with trespassing, I would not spend money on fencing.  Fencing generally a poor investment.  I have one fenced because undesirable tenants in a duplex behind my property.  

Retaining walls, Yes,  always take care of things that affect structure.  Foundation, water leaks fresh or waste, and any electrical issues.  The rest of my improvements are rewards for good tenants.  Little things make tenants appreciate that you are making improvements.  

When I first get a property, I try to make sure it is rent ready, paint, floors, electrical, plumbing etc.  Once rented, unless structure related, I do not do much to properties, unless maintenance man needs some thing to do.  (Unfortunately, getting where he always has something to do.)

You give them your down payment.  Agree on a monthly payment, where all of it goes toward principle.  If you do not mention the interest rate, they may not bring it up.  

Example:  Offer-  I can give you $160K, but I need some time to get the other financing.  I will give you $25K down and payments of $450 per month for 60 months.  At the end of 60 months I will give you the balance of $108K.  You will get copies of paid insurance and taxes each year.  As a seller you will not have to claim all of the income at one time and you will receive close to your asking price.  

Does that help?

depends on your market and class that you are investing in.  My B properties, have ceiling fans in all bedrooms, central Heat and air, upgraded windows and have washer and dryer connections. 

My C properties do not get ceiling fans, as cash allows I upgrade to HVAC and better windows. I prefer them not to have washer and dryer connections because it seems they install washers that leak and seem not to notice if the vent is not connected.  

It is hard to find the right balance, but many upgrades do tend to make for more maintenance.  I like to fix it right the first time so we do not come back and redo things, but some renters are harder on property than others.

welcome to BP.  I am right down the road in Hillsboro.  Lots of good information on here.  Reach out with any questions.  

Nice goal, but instead of putting out that number,  try analyzing at least 10 deals a week.  Put in an offer when you find ones that meet your criteria.  

I would much rather see you get 5-8 properties that have a great cashflow, than rush into 12 units where you may not have deal you should have.  

Work on the process of finding the deal, get it nailed down start looking for the next.  You may wind up with more than 12, but no matter how many you do find it will put you in a better position if you go for the analysis.  

I have purchased with owner financing and have sold using owner financing.  The ones I bought owner finance were usually so-so deals, sometimes the biggest problem is educating them on how it works, usually in an amortization schedule.  They really get confused if I pay extra on the note, because it does not fit the table anymore.  (Currently trying to refinance out of one that the seller argues every year, because the principle came down too much and she is claiming too much interest).  I think she would prefer that the balance did not come down and she did not have to claim the interest.

I sell lots, raw land and some real rough houses on owner finance.  I get a premium interest rate and top dollar on the property, because either they cannot go get other financing or not worth getting other financing because it is easier.  (This is very lucrative for those who do not mind a little paperwork).  

What you have described, sounds like a deal to walk on, unless they are willing to negotiate to your numbers.  You never know what they may take.  I had a gentleman sell me a rough place for 5% down and no interest for 5 years.  Do not be afraid to offer his full price or close to it and no interest for 5 years, with your 20& down payment.  He is getting $30K up front, getting a payment from you each month and a final balloon at end of 5 or 10 years.  He wins, you win

I am like several others on here, I want CASHFLOW.  You pointed out that after expenses you would have $35K to invest.  

With 35K can you find a $125-150K multifamily available in your area.  You should be able to find something that would cashflow and pay off the note.

Example:  

4 plex, $40K per door- $160K total, with 35K down, financing $125K. payment with PITI, $1000 month, rent $500 per door. for a total of $2000 per month.

Of course you would still have cap ex , maintenance etc.  Should realistically get at least $100 per door cash flow.  

Different markets are different, but I do believe you can find a better use of your equity from your current rental.  

It is still your choice, but remember if your property is going up because of a possible Amazon HQ, then the replacement would also be going up. I like being able to get an increase in 2, 3 or 4 doors instead of the one on a condo. Plus, HOA's scare me, I try to stay away from them.

I am impressed @Charles McCabe. 

I thought my numbers looked good, but I feel like a slacker now.  

The kicker for all to remember, you have to get a deal going into.  Otherwise you are fighting an up hill battle to get to even.  If Murphy's law shows up even once, it can hurt.