All Forum Posts by: Scott Johnson

@Evans Wright This looks like your area of expertise sir 

Yes, I would look at this deal. If the in-place rents generate don't generate enough cashflow to cover your debt service, you'll want to plan to bring additional equity to the deal to cover the shortfalls. And even if you have enough cashflow to cover debt service, you may not hit typical bank lender DSCR covenants. Check with your lender to make sure they are comfortable lending with this period of 3-6 months where your cashflow is light.

In terms of updates and tenants, it sounds like you may have time to complete them at the end of each lease expiration. So when lease 1 expires in August, ask the tenant to pay $1,500 (or whatever you would be satisfied with) or vacate. If they vacate, do your renos and have the unit rented by October. Once that unit is filled, do the next one. That way you have some rent coming in at all times. If it's a really tight rental market, these tenants may be willing to pay more in rent and you can defer when you need to do the updates.

Happy to look at some numbers with you if helpful, just let me know.

So I get investors reaching out to me everyday and it goes like this:

"Hi, I know you offer turnkey properties and property management and am interested in the Toledo market, I don't want to buy turnkey but was hoping you could help me find a deal.

Also, do you have any contractor and lender referrals?

I'd also love to work with your property management company"

Diplomacy left me a long time ago so how would you guys reply?

Seems like to me that everyone wants something for nothing nowadays and nobody is willing to put in the work or to pay the margin for someone else that is willing to do the work...

Folks want to "own a monkey", play with the monkey, but not "carry the monkey" or clean it's S#@% when it does one hehe

I guess next time I go to McDonalds, I'll ask them for organic burger buns or where I can find them, I'll bring my own meat paddy and potatoes, get them to make a Big Mac meal for me and maybe I throw some change their way haha

How about those analogies above... lol

Have a great weekend guys and much success with your investing 🙏

Quick poll: just Yes or No

I have a managed account with chase that has been growing with the stock market. I also have a mortgage balance on a rental at 4.5% I got back in 2015. The account has been growing and is about to match/surpass the balance on the mortgage. I am tempted to payoff the mortgage if this happens. Would you pull the trigger? ( I don't want to get too much into the weeds and possibilities of other options that may be available, so I kept this question very simple for feedback)

Hello, I've been investing in real estate since 2015 and have since acquired a few properties. I've been thinking lately that I need to scale up. Currently, I have 3 SFH and 1 MFH ( Triplex) as well as a few land lots and about 9 acres of land. I'm looking for advice on how to scale up to get to that next level. I have lretty good equity thats available. Any strategies recommended?

All this time in this business and can't believe nobody at any seminar, meetup or event has shared this. in summary:

• Hired roofer did a bad job after paying him close to 30k

• City inspector PASSED and APPROVED the permit! Unbelievable 

• His insurance won’t cover because as it turns out commercial liability does not cover craftmanship defects 

they need E&O insurance for that, 

hard lesson learned, 95% of small contractors will not have E&O, it's an extra cost for them and only the larger construction companies carry it.

When doing big jobs always make sure your contractor/GC has this

Happy Investing (:

@Scott Johnson. If you are not a fan of appreciation then where are you getting your wealth building from REI? Unless you are paying cash to buy properties aren't typical duplex/quadplexes with mortgage give out few hundred (not few thousands) bucks per door? Am I missing something?