All Forum Posts by: Scott Kimberly

Wow! That sounds awesome man, congratulations.

That's awesome! How much do you cash flow from this a month? 

I have listened to a lot of the podcast and also browsed on here to know that this might be a foolish question.

How "unreasonable" is it to want property management when you first start out? Even with something like a 4-plex?

I have spent a lot of time (probably stupidly) convincing myself that "I can't be a landlord right now". I don't have the time due to a job and growing family and don't have the desire to deal with headaches or property maintenance (like snow/ice in the winter). But soooo many people don't make excuses like that for themselves. I feel like this inner debate is largely distracting and a huge disservice to myself, so I want to share it with others to see if my current feelings are misguided/based on inaccurate information.

My goal is to not have to work when I'm 40, and I just turned 30. Based on my expenses and my state, I should only need 30 units to accomplish that goal, assuming they all cash flow correctly. Not that I would stop there. 30 units in 10 years seems incredibly reasonable, based on what I've heard around BP. I could start considering quitting my job and going full time at 20 units, but it would be close.

This leads me to my inner debate. 20 units feels like a lot to maintain on my own, even if its 5 4-plexes. Which is where property management would play a huge role. I would love to have systems in place where I can just acquire property and collect money, but that will take time. I would love to manage a property manager while they managed from 1 to 30+ properties for me. The problem with that is that most people don't recommend having a manager to start. I think another issue is that most managers won't deal with only one property, which is out of my hands (and frankly makes sense, its just not financially worth it for them).

These are my rambling thoughts. I need someone to just grab me by the head and shake me. And please don't worry about analysis paralysis, my timeline indicates my investing cannot really start until January 1st, 2020.

Thanks

@Mike Roy fair points! I read an article the other day about "Zombie Companies" and how something like 13% of all corps worldwide are "Zombies". They don't make enough money to pay their debt services. I guess it depends on how many people they employ and if they fall apart all at once or slowly over time.

@Jay Hinrichs I agree with you for the most part, but the sudden rise of non-QM loans in the mortgage sector scares the hell out of me. They are probably fine for now, but it's only a matter of time before they stop being closely watched and start to spiral. If that sector of mortgage products stays "in check" it won't be too bad. My current prediction though is that Angel Oak will be the next Countrywide.

@Mike Roy that's about what I thought and it agrees with all the things I've read about the Dotcom bubble. Largely limited to the Stock Market.

I personally think that we need a good, healthy, correction to account for the bull market we've been in since 2009. The sooner the better too, the more time goes by, the larger the correction is going to be. But I don't think it'll impact housing more than price stagnation nationally, and throwing a bucket of water on the really hot markets.

For all you old-timers out there, what was different in 2000 vs 2008? Dotcom bubble burst vs housing bubble as far as availability, rents, investor income goes? I'm more familiar with 2008 than 2000.

@Michael Noto not too far away from my backyard! Following to see how it works out 

There's a monthly meetup in Wallingford that @Chris Puglisi organizes.

Hey, @Chris Puglisi thanks for hosting this event! I saw this meet up towards the end of last year and have been waiting for the next one! Can't wait to meet everyone!

I take it that development was the initial goal and that the $5k flip was a "plan b" exit strategy?

Otherwise, I would ask if a $95k purchase price with an additional $1.5k was worth a $5k profit. Regardless, a quick $5k is a quick $5k!