All Forum Posts by: Michael Lopez

Good morning. Does anyone have any recommendations for a company that can assist with creating a self-directed 401ks or IRAs investment accounts?

Thanks

What happened to the BiggerPockets app on the itunes store? I did a search a couple of times to be sure and nothing is showing up.

@Chris Seveney thank you for the reply. Let me throw age and time into the equation. If there was between 10 to 15 years before “retirement age”, would paying off the first property up front make sense while still having enough to do what you recommended for the 2nd property? Then using the rent from the first property to help pay down the second property as fast as possible to pick up the 3rd property.

What do you think may be some of the pitfalls of going this route?

I have heard of a snowball strategy of paying off rental properties that can speed up the number of doors you can acquire over time. Can this strategy work with partners in which 2 - 4 people put in enough to purchase the first rental then implement the strategy moving forward utilizing the rental income and equity? Can something like this work and has anyone ever heard of such a thing?

For example: 4 people put in equal amounts to purchase a $200000 property in which $2000-$2200/mn rent can be collected. How can we make this strategy work moving forward now that we have a $200k property paid off and collecting monthly rent. We obviously have to take into account monthly fees for the property such as maintenance, CAPX and so on. Can this work? Thoughts?

@Greg Scott thank you! That is great information. The listing agent provided some comps along with the cap rates which were in the range of 5.8% - 9.5%. Reading you use the word fractured raises some eyebrows and concerns that the 3 owners may decide not to sell after some upgrades are done on the property or sell for a higher price.

I am interested in a multi-unit property that will be up for auction in about a month. There are currently 9 of the units that are a part of the auction and 3 that are not, but will be available for purchase after the auction. The listing agent provided some financials for the past 3 years and the May 2021 rent roll. C-class building that has a laundry facility that earns some income. There have been some violations from the county Fire Chief that need to be resolved by the seller and at this time all units are occupied. I will be driving down during Memorial Day to do a drive by and take as many pics and videos as possible, but can someone here provide me with some guidance as to what I need to be looking at if I wanted to present this to a potential investor. I did ask the agent if he could provide me with the cap rate for that area, but I never got a reply. 9 units are renting for $1350 each. There is an HOA. The other 3 units are privately owned. Any help would be greatly appreciated!

@Dave Spector wouldn't bringing too much cash to some of these deals cause a negative CoC return? I believe we've gotten to the point that unless there is a significant increase in rental prices, the MLS deals won't work. And increasing rents in some of these locations would price you out of the rental market. The only other way would be to lower the list prices for some of these properties to something that is reasonable for a buyer or find a wholesale deal or bid at auction if that's possible.

Thoughts?

@Jon Huber thank you Jon. DM sent. Really appreciate it!

@Yoann Dorat will do. Thanks!