All Forum Posts by: Sam McPeek

@Brandon Turner @Joshua Dorkin 

Thanks for the update, looking forward to seeing that included in the tool...I do have a question regarding access to the tool for Plus vs. Pro.

 The info about what access the Plus Account users have seems to be conflicting, depending on what web page you land on. If I click on Analyze, and then on the big "Rental Properties" icon, the web page it takes me to indicates that only Pro users can view their reports. If instead I click on the "Investment Calculators" icon that takes me to a page with info on all the calculators and that indicates that viewing reports is available to both Plus and Pro....and if I go to the Upgrade Account page, that indicates that Plus Account has full access to the tools, but is just missing the ability to brand reports.

So the question is, if I upgrade to Plus can I view/print reports on the Rental Property Calculator? What is the limitations of access vs. a Pro account?

Thanks in advance for clearing this up!

-Sam

What about regular walk thrus to do regular maintenance and check on the property? That way you could make sure the plumbing fixtures aren't leaking, the air filters are changed and smoke alarm batteries are changed.

Congratulations...that's exciting! On to the next one!!

@Scott N. You asked for practical steps towards your goals, and I have felt like you in the past. The best thing my wife and I did for ourselves was to take the Financial Peace University course from the Dave Ramsey group. It really helped us to put our personal finances in good order, and taught us good habits as far as budgeting and spending. Doing a zero based monthly budget and an allocated spending plan (& using cash instead of plastic) helped us to look at our spending objectively and start chipping away at lowering our expenses. In the last 3 months we have reduced our monthly expenses by over $600, just because we were objectively making better choices each month.

I know that Ramsey's advice on investing is not popular on sites like BP...but it's hard to argue with his take on personal finance, budgeting and using cash instead of plastic. At less than $100 for the class, it's a great value. Take the class and put into practice the steps, and that will give you great strides in controlling your money instead of letting it control you!

And not to sound to philisophical...but there is something magical that happens with your psyche when you make steps towards controlling your money. Just doing that will change your outlook on creating 'rich' habits.

I bought a old (1986 G20) construction cargo van for 1600 and then paid my mechanic 700 to do some maintenance and updating (steering linkage, tune-up, air bags on rear). The thing is great, has tons of covered room and I can still fit full sheets of plywood in it.

I'd say keep your car if you like it, but buy yourself a old cargo van.

Don't get caught up in what the image of driving a new truck would be...no one really cares. (that's advice I needed...) Plus the side of it is great for sinage when/if you get to that point and you can leave material/tools in it overnight cause no one can see in!

@Elliot Smith That's an interesting perspective. I always figured the multi-family would provide better cash flow. Can you share some of the numbers on your SFH house? The house pictured above is just one block off Thayer...

@Brandon Turner I have a question on the rental property calculator...It looks like you can only put one loan amount down. Is there a way to add loans, for instance if there is a seller carry-back or 2nd note with a different interest rate for down payment?

From what I've seen, not in the Tri-Cities...but I think 1% or a little better is doable for sure. For example, Richland has a lot of duplexes...somewhere around 1,700+ and most of them are the exact same 2 floor plans. The "A" style duplex (3/1 each side) sells for anywhere between 160-180K retail and rents for 800-950 each side. The "B" style duplex (2/1 each side) sells between 150-170K on average and rents are 700-850. Both of these floor plans originally had unfinished basements, so you can often find one that the basement has been finished with extra bedroom/bath. The downside to these is that they were built between 1943-1950's and often need serious updating if it hasn't been done already.

But, being that 2% is only a guideline I think it's also important to look at the other positive factors of low vacancy, lower taxes, and strong local economy.

There are several articles on here that walk through step by step on analyzing a deal. If you are a free member, you also have access to the deal analyzer to use 5 times. Find it under the Analyze drop down menu above. Anything over 4 units will be valued according to NOI, I think.