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All Forum Posts by: Soren Ager

Soren Ager has started 7 posts and replied 26 times.

For me the big MINUS is its Baltimore City, so more complicated and much harder to evict. 

How much do you plan for maintenance monthly? Right now I am putting 300$ aside a month and its def. way to much.

Originally posted by @Joe Bruck:
Originally posted by @Joe Norman:

I primarily use the BRRR method, so the end goal is to have little-to-no cash invested which means that Cash on Cash Return is not a really meaningful metric. That said, I would look for at least $400/month net cash flow or else its probably not a good deal.

Joe you said it very well... many investors in Baltimore city will tell you they average $300-400/month after all the gimmicks....

Hey Joe

I never quite got the idea about the BRRR. 

When you do this BRRR, you basically want to get cash out for the next house deal right? The thing that comes to my mind is.. so you might have more rentals in the end, but they cash flow way less as you refi the rental to get max cash out, and therefore you mortgage is higher now. Where I might have fewer rentals but they cash flow, the same as someone that twice as many.

I also look on, the more rentals you have the more work you have, plus risk of bad renters/payers.

Would you mind educating me on what, I am missing here.


Originally posted by @Joe Norman:

I primarily use the BRRR method, so the end goal is to have little-to-no cash invested which means that Cash on Cash Return is not a really meaningful metric. That said, I would look for at least $400/month net cash flow or else its probably not a good deal.

I so agree, my rentals are like steady as she goes, with great returns.
Think of how many companies that have learned.. wow wait a sec. i could send more than 50% of my workforce to work from home, and we are still doing good. Why would I have insanely expensive office space then. 
I already know from my company we are going to make major changes, and the savings potential is so big.
I wonder how big the hit on commercial real estate is going to be.


Originally posted by @Jared Friedman:

Syndications are great and as hands off as you can get. I'm invested in over 20 syndicated deals and the IRR will generally be much better than owning single family rentals. However once you've invested in one bad deal and lost all your capital it changes your tune a bit. It's all about the sponsor. I'd rather invest with a solid sponsor with lower returns than some of these syndicated deals promising super high returns with inexperienced sponsors. I think owning rental properties and syndications are a great way to diversity. Rarely does a rental go from $100k to zero. Think if you'd invested in hotel syndications, malls, senior living centers etc. You'd be regretting that now with covid as those have taken a huge hit. My rentals still produce cash flow each month and I'd never give that up.

Would you mind sending me some info as well to read.


Originally posted by @Andrey Y.:
Originally posted by @Michael J. Abel:

Thanks for sharing. Which two syndicators did you invest with (ones that exited) and what was their initial business plan?

 Happy to share via a PM. Do you invest as an LP in syndications?

Post: IS THIS TOO MUCH DEBT?

Soren AgerPosted
  • Posts 27
  • Votes 8
If you go with that is being preached by the creators of this page... then every month you should put aside 100$ for repairs, 100$ for capex repairs and 100$ for rent (for when you are in between renters EVERY month.

That means you income is
1300
-300 to set aside for repairs and lost rent
-800 for mortgage
200$ a month is now left for your ROI basically. 

I would also say this...  almost no matter what.... there will be repairs or paint that needs to be done, and no matter if you do it all yourself that comes with cost (I feel like home depot prices has gone up insanely lately)

I myself do not have a lot of rentals, but I am low risk the ones I have. I took time to save up. I understand being exited, I so get this.. I worked myself half to death on my first 2 rentals renovating them myself, because every cent saved was closer to the next one. But be careful, the economy right now makes no sense.. records house prices and record stock market at the same time we have record unemployment and defaults from both private and companies.

I wish you all the best, but protect yourself and your future. 


Originally posted by @Michael Fellers:

Jack, 

I appreciate the constructive criticism, and I’ll admit that inexperience is something that describes me well. As far as the numbers and other information; I have a degree in business and have read dozens of investing book. I know that doesn’t account for much but I am fairly confident in my ability to look at numbers from an unbiased perspective and make a good decision based on the info I have. I currently have a full time job as a sales rep and make 2,500$ month after tax and 401k. My mortgage payment for my primary residence is 580$ but I pay 630$ which equals out to one extra payment a year. I will be getting married soon and my soon-to-be wife is more than willing to invest with me, but I don’t want to tie her name in yet to avoid damaging her credit if things take a led to turn somewhere. The market value for renting a 1000 sq ft unit in this area isn’t about 650/month Which would total 1,300 if both rented out with out problem. The estimated mortgage payment would be just over 800 I figured if i escrow tax And everything. I have about 5k in savings and 3k in my checking. 

As far as advice, is there anything you would specifically look out for or anything to make sure of before you put an offer in? 

Thank you!

Post: Newbie on to 2nd flip

Soren AgerPosted
  • Posts 27
  • Votes 8

Congrats man.. I was to worried about getting contractors involved so my rentals I have renovated myself. This will be my next step, when the right thing comes along.

I agree living responsibly, and I have always lived well below my means. I would though say, please also remember to live life. I am now 42 and I have already lost 3 close friends to accidents and sickness. That makes me remember to also enjoy life, as it could be gone tmr. 

Originally posted by @Stephen Predmore:

@Sam Lewis

Start earlier, save more, stop buying stupid shiny things, buy assets not liabilities, live below your means.

I have a college-age son who I'm trying to steer in the right direction with house hacking and saving for a down payment.

I agree with you, though point #2 becomes almost impossible if you have kids, or maybe I just don't get how to work the system.


Originally posted by @Stephen Kehoe:

1. House hack ASAP

2. Utilize low down payment and low rates of owner occupied mortgages as much as possible.

3. Look for ways to add rooms  or square footage on cash purchases that are valuable enough to be refinanced after rehab.

4. Seek to serve others in the business to build your network.

I agree with Sam on this one. You have to go with % rule. 

Look at it this way.. a 100k hours that rents out at $1000 a month, is way better than a 250k house that rents out at $1400 a month. Well at least in my book.


Originally posted by @Sam Lewis:

I like to go by the % rule (gross rent compared to purchase price). So a 100K property that rents for $1,000 / mo would be 1%. 

For Baltimore City in a C class or better neighborhood, I would pursue a turnkey deal if it met the 2% rule.