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All Forum Posts by: Troy Whitney

Troy Whitney has started 7 posts and replied 107 times.

Post: 2% rule..is it still real?

Troy WhitneyPosted
  • Contractor
  • Seattle, WA
  • Posts 137
  • Votes 42
Originally posted by @Account Closed:
Originally posted by @Troy Whitney:
 

 Well then - I'll settle for 4 times the return than you.   And uh, I've been investing in real estate for a number of years.  .5% is barely cash-flow positive in a state with wildly over-priced property.  What could possibly go wrong there?

 and yes - I have good tenants

 Um, can I see your calculations on a 4 times better "return"?  I think you've made a classic newbie mistake.

Well - maybe not net return, but I promise you that my IRR is better than yours per dollar invested. But please do tell me all about it with all of your great smugness how someone is going to get rich with a .5% return. And btw - I know another "newbie" who owns over 500 homes split between the West and the Midwest, and he does a hell of a lot better than .5%. I just love how smug you are. I got news for you: 0.5% sucks. It's a bad rate of return for real estate. Not good at all. If I'm not netting 4X what you are - I'm doing at least double, possibly triple. I'm netting right now close to 15% without leverage after all expenses. Soon with leverage I'll be closer to 25%. You ain't anywhere near that. You're barely cash-flowing at all tough guy.

Post: 2% rule..is it still real?

Troy WhitneyPosted
  • Contractor
  • Seattle, WA
  • Posts 137
  • Votes 42
Originally posted by @Troy Whitney:
Originally posted by @Account Closed:
Originally posted by @Richard Dunlop:
Originally posted by @Account Closed:
Originally posted by @Richard Dunlop:

Why settle for 2%?

 Not me.  I'm a solid .5% man.  I let the newbies and the poorer people tangle with the less desirable properties.

"Poorer" you're over-rating me! 

I started with nothing!

 Cheaper might have been the better word since the 2% ratios seem to  be marketed to California people because they have the cash.  So I guess the 2% ratios are for newbies, the uneducated and the cheap bast*ds.

 Well then - I'll settle for 4 times the return than you.   And uh, I've been investing in real estate for a number of years.  .5% is barely cash-flow positive in a state with wildly over-priced property.  What could possibly go wrong there?

 and yes - I have good tenants

Post: 2% rule..is it still real?

Troy WhitneyPosted
  • Contractor
  • Seattle, WA
  • Posts 137
  • Votes 42
Originally posted by @Account Closed:
Originally posted by @Richard Dunlop:
Originally posted by @Account Closed:
Originally posted by @Richard Dunlop:

Why settle for 2%?

 Not me.  I'm a solid .5% man.  I let the newbies and the poorer people tangle with the less desirable properties.

"Poorer" you're over-rating me! 

I started with nothing!

 Cheaper might have been the better word since the 2% ratios seem to  be marketed to California people because they have the cash.  So I guess the 2% ratios are for newbies, the uneducated and the cheap bast*ds.

 Well then - I'll settle for 4 times the return than you.   And uh, I've been investing in real estate for a number of years.  .5% is barely cash-flow positive in a state with wildly over-priced property.  What could possibly go wrong there?

Post: 3rd property in Philly

Troy WhitneyPosted
  • Contractor
  • Seattle, WA
  • Posts 137
  • Votes 42

Thank you Brian.  Yes - learning lots and although my third property has turned out to be  a bigger remodel than I had thought it's almost done and things are looking pretty good.

Have you invested in Philly?

Post: 3rd property in Philly

Troy WhitneyPosted
  • Contractor
  • Seattle, WA
  • Posts 137
  • Votes 42
Originally posted by @Adrian Chu:
Originally posted by @Troy Whitney:
Originally posted by @Donald Whitfield:

@Troy Whitney

I mean at that price you may run into a Higher turnover rate and a lot of people shy away from that for several reasons...Not to many people who like a revolving door of tenants in their property. Not saying you will have that problem, just saying i see where others are coming from. In the end though, the objective is to make money and if your way works for you then continue to do it.

 Yes I definitely know what you're saying, although I do wonder if people that rent at the higher end may be more likely to want to buy a place of their own at some point.  My broker in Philly says on average people will stay in rentals for 5-7 years if you take care of them and the property, with single-families anyways.  My understanding with multi-famlies is that turnover tends to be higher.   Obviously, a lot of it depends on the demographic you rent to as you say.  We'll see how it goes for me though as you say...

 Fellow Seattleite, hope to continue hearing updates on your Philly adventure!

 Adrian - absolutely - we should definitely stay connected.  I love networking and am happy to meet for coffee if you like.

Post: Please help $41,000 paid to a guru company to be refunded !

Troy WhitneyPosted
  • Contractor
  • Seattle, WA
  • Posts 137
  • Votes 42
Originally posted by @Debbie Lee:

@Lew Payne I am not expecting those individual consultant to deliver more than what they are asked for. But, why got me so devastated  was both of them promised so much before I gave them the money. The 1st consultant even "pretend" to have good relationship with me and PROMISED to help me step by step, so surely she knew she was leaving way ahead, why wouldn't she tell me she was leaving? instead PROMISED so much and deliver nothing.

The 2nd consultant send me to the wrong place for bootcamp the day after I paid him $35,000, it was a very snowing day, I spend 1 1/2 hour driving to the wrong place found out no one was there, would you call this guy right the way? ha ha , guess what he was not available and I left a voice message. I waited 5 days to get him to talk to me "properly".

He end up telling me " he is a single dad and he is very busy....." no apology what so ever !!!!

@Lew Payne  do you have any misunderstanding over the issue I have over here?

I am totally agree with @Account Closed which scammer guru do you work for?

Debbie, just to repeat what I sent you in a message, take a look at this: http://www.nytimes.com/2013/01/26/your-money/what-...

The Fair Credit Billing Act dictates that there be a process by which you can question unauthorized charges, billing errors and transactions involving goods and services you never received or merchants that did not deliver in the way they were supposed to. This sounds to me like you are a victim of fraud. Dispute the entire amount of the charges - all of it, with your credit card company, then the onus is on the con artists to prove that you owe them this money. 

I would say get the attorney later should they fight hard against the disputed charges, and don't sign anything else for them.  Make no promises.  If they fight you, get an attorney, and tell them you will sue for all of them money plus attorney fees.    

Post: 3rd property in Philly

Troy WhitneyPosted
  • Contractor
  • Seattle, WA
  • Posts 137
  • Votes 42
Originally posted by @Donald Whitfield:

@Troy Whitney

I mean at that price you may run into a Higher turnover rate and a lot of people shy away from that for several reasons...Not to many people who like a revolving door of tenants in their property. Not saying you will have that problem, just saying i see where others are coming from. In the end though, the objective is to make money and if your way works for you then continue to do it.

 Yes I definitely know what you're saying, although I do wonder if people that rent at the higher end may be more likely to want to buy a place of their own at some point.  My broker in Philly says on average people will stay in rentals for 5-7 years if you take care of them and the property, with single-families anyways.  My understanding with multi-famlies is that turnover tends to be higher.   Obviously, a lot of it depends on the demographic you rent to as you say.  We'll see how it goes for me though as you say...

Post: 3rd property in Philly

Troy WhitneyPosted
  • Contractor
  • Seattle, WA
  • Posts 137
  • Votes 42
Originally posted by @Donald Whitfield:

@Troy Whitney

Definitely a tough area, but you have paying tenants so I wouldn't sweat it. I wish you the best.

 Yes, looks like if I went down five or six blocks I'd be in a little nicer area, but then again, I probably would have paid a lot more.  I paid $44k for this one and it rents for $800, and I had probably 20 people contact me about it in the first week to rent it.  It amazes me that in a major metropolitan city in the US you can find a livable 3 bedroom/1 bedroom house for <$50k.  You pay more than that for a parking space in downtown Seattle.  And here for a place that rents for $800/month you would pay 3-4 times what I paid.    I read a while about about a couple of guys that used to work for Goldman that have started investing in mobile home parks.  This to me has the potential to offer a much smaller ick factor.    I know there are people on here who have gone  on and on against houses in this price range, but that's fine with me.  When you have strong rental demand and a replacement cost of 2-3X the market price, I'd do that all day long.

Post: 3rd property in Philly

Troy WhitneyPosted
  • Contractor
  • Seattle, WA
  • Posts 137
  • Votes 42
Originally posted by @Donald Whitfield:

Being a South Philly guy born and raised I can tell you for a fact it really just depends on where the house is located in "19145" there are some areas where you can leave your door unlocked at night ( although i wouldn't advise it) and there are some areas where you think you are in a scene off of The Wire. Either way you will make money on the house because its South Philly. Its the only place in Philly where everyone has 3 cars and you have to pay for yearly parking permits to never have a spot on your block and have to ride and ride to only find one 5 blocks away. If you goal is just cash flow though you should be good, but if its good up keep of the house over time safety of Tenants etc then just be on the look out. Realtors call neighbors  up and coming all the time but wouldn't dare go to some of these places at night or during a hot summer day in June, but again just move with caution because 2 blocks away could be paradise. Good luck, and congrats on the third property 

-Don

 Great to hear your perspective Don.  Thanks for the feedback.  Yes it's been an adventure.  I actually bought the property site unseen. The address is 1835 S. Taylor - you can tell me what you think of that block.  I know it's not in the greatest part of S. Philly but so far so good.

Post: 3rd property in Philly

Troy WhitneyPosted
  • Contractor
  • Seattle, WA
  • Posts 137
  • Votes 42

Definitely Mason.  So far so good.  Working on an extensive rehab now and will be trying to get a Section 8 tenant in there.  Happy to connect in a few months and let you know how things are going.