All Forum Posts by: Tiana O.

Hey @James Masotti, congrats on your first 3 out of many. How did you find your partner? Was it someone you already knew?

Hey @Shiloh Lundahl, when you use your HELOC, are you refinancing the rental to pay the HELOC off quickly, or just paying it down gradually.

Also, I love this idea of the 10X Rule, I'm gonna have to grab that book when I get a chance. I've always lived by the notion, if you reach for the stars and don't make it, you'll at least be among the clouds. So that idea of multiplying your goal, to me, means that you'll easily hit your original goal en route to your BHAG (Big Hairy Audacious Goal). Also, if you dream big, you always have something to work towards. That's originally how I got to my first goal of 50 units. Originally, I just wanted enough units to replace my current income, but then I thought, why don't I double that just to be safe. And once I doubled that goal, I began to wonder if it can be done (hence this thread).

Good Luck @Account Closed looking forward to hearing your story soon!

Hey @Ned Carey, after doing some calculations I've found that a minimum of 50 units helps me reach my freedom number (if they cash flow like I want them to). Also, as you alluded to, it's not just 50 units in general, I'm looking for a bare minimum cash flow of at least $300 per door (of course, looking for higher returns) but at the very least to get out of the rat race that's the goal I'm shooting for. Although I'm really interested in getting my first rental to start my 2 year seasoning period as a landlord, I'm definitely running the numbers every time I come across a property. For my initial analysis I use tool created by Emily Du Plessis, which helps me figure out what I need in order to move forward. So I'm looking for a minimum 12%-15% ROI, and bare minimum $300 cash flow (although I'm way more comfortable with at least $400-$500). That final cash flow number for me takes into account most expenses that I can think of: PITI, 10% mgmt fees, Umbrella insurance, Home Warranty, and 10% Cap Ex savings, estimate 2 month vacancy rate for each unit each year, and it also assumes that tenants are paying the utilities (although there is a line for utilities in the property analysis tool that I use). I don't want to settle for quantity over quality, or even quality over quantity. Since I'm goal setting, I kind of want both; and I'm willing to put the time, effort, and analysis in to get to it.

From what I've heard, the voucher program uses the fair market rents to set their rents. I've also heard that these can change by area. Does anyone know the extent to which Section 8/HCVP adheres to these fair market rents. 2016 Fair Market Rents for Baltimore City Efficiency $851 1 bedrooms $1,033 2 bedrooms $1,298 3 bedrooms $1,663 Would a 3 bedroom rowhouse bring in the same Section 8 rents as a 3 bedroom in Canton?

Hey Ozzy Sirimsi , yeah I probably be driving around the city more on the weekends and at night to get a feel for some areas. I think my next move is to find a good property management company who can inform me about the areas. It's crazy how Baltimore can change sooo drastically over a couple of blocks.

Hey BP fam, I'm looking to acquire my first rental soon so I can start my 2 year clock. I'm aiming to be a buy and hold cash flow investor. I'm debating whether I should get out of the market that I know (which is oversaturated) and head to good ole Baltimore city for the cash flow potential.

I'm in the DC metro area. I wrote a $150k offer on short sale (still waiting to hear back from the bank) for a 4/1.5 two-level (no basement) townhome in Capitol Heights, MD. It's a B/B- neighborhood. All in, the monthly expenses would be around $1,475 (including PITI, $200 PM fees, $50 home warrant, $100 cap ex, $50 condo fee). Average rents are around $1600 ($126 cash flow, 3% ROI), but I'm thinking if I rent to Section 8, I can get $1900 ($426 cash flow 10% ROI).

I'm thinking about blowing this deal and heading to Baltimore City to pick up some of those $50k - $80k properties, or maybe a multifamily for under $150k. The problem is, I really don't know Baltimore that well. I can tell you that Canton, Fells Point, and the Inner Harbor is the place to be (but there are no more deals there). So I'm looking near the colleges or near up and coming areas like Pigs Town and Remington. However, I heard Baltimore changes by block. In order to use the little bit of cash I have to buy multiple units or properties, I wonder if anyone would suggest or advice against going to Baltimore City. I've overlooked it in the past, but its one of the only places that I've found (strictly looking at the MLS), within 1 hour of DC, that you can get properties around $50k with rents around $800 - $1200, beating the 1% rule.

Is anyone familiar with the Baltimore City Market? Would you suggest getting rid of my current deal for 1 property worth $150k to try to diversify my funds into 3 properties worth $50k each or 2 worth $75k or a multifamily.

@Andrew Johnson funny you mentioned Detroit, because I'm playing with the idea of moving my target rental market from the DC area (which is highly saturated, and has already appreciated) to Baltimore City (which probably has more C and D class neighborhoods, but with the right property manager can cash flow). I'm definitely open to the idea of house hacking 4 units, but I have no interest in leaving DC to owner-occupy a property in Baltimore. It's just too far from my work, friends, and family. In the up-and-coming parts of DC, 4 units go for $475 and still need $50k+ to get it up to code. For my first rental, I think I might be priced out.

Hey @Linda S., 

Wow. It seems like you all having been making great strides over the past year. I'm definitely not as hands on and skill savvy when it comes to renovations. I think my next move might be to look for some good contractors and possibly property managers that have good contacts, because that's not something I can do on my own. However, your story does give me some context on what's possible, and what my limitations might be in terms of scaling. Good luck with your 6th and 7th rental. I'm sure your sacrifice is going to pay off.

Originally posted by @Jim C.:

@Tiana O.- One at a time. Only concentrate on one at a time so you don't get frustrated or discouraged. Alot of newbies get overwhelmed and burnt out since they set lofty goals. When I started out, I didn't have a "number" but as the years went by they accumulated like rabbits. I look back now and say "Wow! How did I do that???" 

 That's good advice. I'm big on goal setting. I think it keeps me focused, but I definitely understand how that can lead to burn out.