All Forum Posts by: Matthew L.

@Kurt K. I'm a softie too :) How much do YOU need that $50 is the question I'd be asking. Loan them back the $50. At best, you've helped them out in a time of need. At worst, you don't get it back and you start the eviction process and be out $50. I'm much more inclined to risk losing $50 if it helps someone in need out. Yes this is a business but not every business needs to be run in a cold hearted calculating way to be successful.

@Henry Montgomery III Yes always have multiple exit plans. The rental cash flow numbers on the condo I bought were decent but it was in an area I thought would have a lot of appreciation. Luckily it has appreciated significantly and I plan on selling soon to use the profits to fund a few more rentals that cash flow better.

I bought a condo as a rental. Looking to add a couple single family houses next year to the portfolio. I like buy and hold as my foundation supplemented by flips when the oppurtunities are there.

Amazing story! Making that first deal is the biggest step most people never get to because they're so afraid of doing things wrong. You did so much wrong and still came out decently! Even if it cost you some money it would have been worth it's weight in gold as an education. People will spend $100k+ on college but are terrified of losing $10k on a deal that will teach them so much more! Congrats on your success and good luck in your future deals!

@Marvin McTaw I have a 30 year fixed rate mortgage at 5.625%. I looked into it but I couldn't get much lower due to it being a condo and an investment property.

Thanks @Nick Fitzpatrick. PITI is ~$1050 and HOA is $230. My capital gain tax will be in the $14-16k range I think.

Cabbagetown being hot right now is exactly my concern with wanting to sell. That plus rising interest rates. I can't predict the future but I'm concerned with how fast the prices have appreciated in the last few years. I'm thinking it's better to not push my luck and use these profits to invest in better cash flowing areas as cash flow is my goal. I don't want to be a speculator.

And I have visited Cabbagetown. Love the whole Cabbagetown/Old 4th Ward area, that's why I bought there in 2013. It reminded me a lot of the early signs of progress in neighborhoods in Brooklyn.

This is a business opportunity. A small percentage of landlords allow dogs, and an even smaller percentage allow pitbulls. I have a pit and when I was renting I was more than eager to pay above market rent to find a nice rental that would have me and my dog. Just make sure you have adequate insurance and raise your rents accordingly. Your cashflow will improve and you'll be providing a happy home for people who probably go through hell trying to find a rental that will allow them. I'd also have them provide proof the dogs are spayed/neutered, up to date on all vaccines, and get a letter of recommendation from their vet that the dogs are well behaved.

This was my first and only REI deal back in 2013. It's a condo in Cabbagetown that I purchased to use as a rental. At the time I thought the numbers were good but I clearly didn't have a clue :D On top of not knowing to set aside a % towards vacancy and capex, the property taxes also jumped from around $1k to $3k because I didn't know that landlords paid different rates than occupants.

It still worked out in my favor due to a combination of great tenants, low capex, low vacancy, rising market rents and appreciation but my money isn't working as hard as it could and I think it's time to get a few better cash flow SFH. Just wanted to get some opinions.

Purchase price: $165,000

Cash outlay: $37,725

Current rent: $1,650

Gross income (5% vacancy): $18,810

NOI: $11,124

Cash flow after debt service: $2,006

Cash ROI: 5.32% :(

This looks even worse because I self manage so it would be pretty much break even if I ever needed to outsource management.

Recent comps are around $240,000. 45% appreciation in 3.5 years thank you very much Beltline development! After fees and closing costs I should pull out about $96k in cash if the market holds. The plan is to use that to do 2 BRRRRs in 2017. Am I missing anything or is it pretty clear that I should sell?

I thought I only had to purchase at least as much of the cash I received from the sale, not the total sale price. So flipping it into an all cash purchase is out of the question unless I come up with an additional ~$130k. It will make more sense for me to split the proceeds into down payments on 2 houses then. Thanks for the clarification!

I have a rental I'm planning to sell in a few months and I'm thinking of doing a 1031 exchange. Couple of questions.

1) The purchase price was $165k and I had a $132k loan, approx $126k left on the loan. Recent comps are selling around $240k. Do I need to put 100% of the funds I get at the closing into the 1031? Or am I allowed to take out the $33k down payment + $6k in principal payments I made without paying tax?

2) I'd like to use the 1031 to make an all cash purchase and do a BRRRR. I'm not taxed on the cash out refi correct?