All Forum Posts by: Sean Lambert

@Allan C.

Cash flow is king. Debt pay down and appreciation is gravy.

@Justin Melton why don't you have any reviews yet? Income is only part of the STR game, you need reviews to up your status.

For purchasing the second one, you’ll need to get creative. Do you have a 401k you can borrow the down payment from and have the seller carry the rest?

@Marie Larcom learn the laws in TN.

@Joseph Fenner what step are you on in building your empire? I’m reading One Rental at a Time right now. It’s not on Bigger Pockets, but a good read so far. I especially recommend it if you are building the empire while having a W2 job.

@Peter Woerner what is the monthly cash flow? You numbers should include the mortgage payment, not just interest and insurance.

I, personally, don’t count debt pay down and appreciation in my calculations. They are gravy on top of the cash flow.

That's a heavy loss each month.  Is this located in an area that is up and coming or is it already established?

Look for the next one.

Put those numbers into Excel, so you can just plug in the next house and don't have to use pen and paper.

Debt pay down and appreciation should NOT be included as part of your return.  Count those as gravy after the main course of cash flow.

You avoided a trouble tenant that likely couldn't have afforded the higher rent and the dog could have done damage.  Thankfully she was upfront about everything.

Return the deposit and continue your search.  If you passed on decent tenants, call them back and say that the unit is available again.

Good luck.

@Dele Gabriel

Can you pay it using a credit card?

@Alicia Marks

Went to check on a rental and heard a rooster crowing from the basement. I told the tenants they couldn’t have a rooster. That was the last time I heard the rooster. It might have been dinner one night.

@Kevin Scott

Both of our’s are under 1000 sq feet. By not having a party house, you’ll have less wear and tear, so your investment will stay nice longer. It also takes a lot less time to clean and less upfront setup costs to furnish.

Good luck.