All Forum Posts by: Ryan Cleary

Hey Kimberly!

So the first thing I noticed is the Cash on Cash return.  1.65% is pretty low, I generally pass over a property if the Cash on cash is less then 8%.  That being said, if you are betting on the property appreciating faster then other markets then it could be a great deal.  I live in New York and if I were to be putting 25% down on a property and managing it myself I would be looking at -10% Cash on cash which is just insane.  That forced me to look into markets in different states.  On my last deal, I put 25% down in a market that is expected to appreciate well and my Cash on cash is roughly 10% even with hiring property management.  Not only is this great because it brings in more money but it is safer.  Best of luck, if you need any more help let me know!

I would set aside 2-5% of purchase price for closing costs which will affect your cash on cash.  On both deals that I have done, they have come in around 5% unfortunately. Depending on the property I like to factor in 7% maintenance, 7% cap-ex and I usually find a 5% vacancy rating safe for my market.  More then likely setting aside the combined 14% for repairs is going to be overkill but its better to have it right in the beginning.  I live in a market that simply makes no sense to invest so I have been long-distance investing and so far it has been life-changing.  Best of luck!  

So it sounds like your Dad is going to have a very comfortable, deserved retirement.  Take this with a grain of salt since I am newer to investing.  Maybe he would feel comfortable with keeping his current assets the way they are and any new income putting 25% down on some turn key multi-family homes with healthy rental history.  Statistically speaking, the chances of him losing money off a safer deal like that are very slim, plus it would be such low maintenance especially if hiring management.  He could even use a 15 year if that makes him feel better.  At least in this scenario he is using the most valuable resource in real estate, leverage.

I have just had an awful experience with fundrise. Horrible returns and you have no access to your money. Seriously, I put $500 in two years ago, right now it’s $526. I have been trying to get my money out since March and they say they can try to get the money out in October but there will be a penalty. How can you possible put a penalty on top of what, a 2% return?

Fundrise kinda totally sucks.  Power in this industry comes from leverage and fundride is basically using us as leverage.  I put $500 in two years ago and my account is at $526 and its a horrible process of getting your money out, I have been trying for 3 month already.  I did my first real deal a month back and have seen better returns from my first month collected then 2 years using fundrise.

I own property up in New York as well as down in Palm Beach County and I will say that an HOA is just awful for investing. My property down in Florida has no HOA and cash-flows great. The HOA on my property up here in New York just completely drowns us. That being said I would take the advise given to you in the previous comments because I am sure there are some HOA's that are not so detrimental to investors. For me, I stay away from HOA, I don't have the time to make sure I am getting a good deal with an association plus I only trust myself with my money.

That seems very interesting, Silly question but I’m guessing you have to be an attorney to take advantage of that attorney mortgage program?

And yes I contacted her last week, she was great, thanks for the recommendation!

@Kevin Hill

I really enjoyed your input. I just finished my first deal, a duplex in palm beach county, that I’m not too worried about even if there is a major correction. I have been saving up like crazy to run into my next deal but now I feel as though I have some more macro-economics to analyze!

Thank you!  We may actually be able to make it work since our current home is New York and the house we would be trying financing for would be in west palm beach, thanks for the input!

My girlfriend and I currently own our SFH with an FHA loan that we closed on in October of 2019. We are looking to rent our place out at the end of this year and purchase a 4-plex. Would we be able to qualify for anther FHA loan? What kind of obstacles should we be expecting?