All Forum Posts by: Thomas D.

Great news. Now you should begin to immediately plan for the removal of your financial partners. Scrap and save every dollar you make and stash it away and plan to sell this building soon. Save your cash flow and take the equity you get when you sell and put into something you own completely like a smaller 3-8 unit property and put as much as you can down thats closest to 100%. Then that becomes your true foundation. You own it and its all yours and ALL the profits and equity are yours. Dont ever give build your portfolio beholden to someone else even if it slows your growth.

7 Votes

I am new to this thread but making 500 a month on a house seems so risky to me. Im an advocate for multifamily. One units rent pays the mortgage and taxes and the other cash flows the profit. 700 to 1200 a month. I flipped 60+ houses in my life and owned rentals. I would never buy SFH anymore. To much vacancy risk unless it by a college.

1 Vote

ah. I have done that. Buy a 4 plex live there then buy a 3 plex that had bigger units and live there and buy a duplex and live there. It's a great idea.

1 Vote

Originally posted by @LaTashia Rose:

Thomas D. I would say it depends on what market you're in. Real Estate is all about location,location,location. My market is experiencing multiple bids when hot properties that are priced well hit the market. "Hot" means equity potential in a fixer or buy & hold OR move in ready and priced well.

Feels like 2007. Hot markets. Fast appreciation.Multiple Bids etc.....

0 Votes

Well, I have always thought I was a buy and hold guy but I came to the realization after speaking with some friends in finance, investing and banking that we are at peak levels. I contracted to sell a few things this week and I'm waiting to see what happens and sit on some cash. I will keep a few paid off properties but they will be limited. Anyone see what RBS suggested to its clients ? I agree cash out time is here.

Anyone agree? I see declines ahead and a coming perfect time to buy.

1 Vote

Originally posted by @Rodney Smith:

Just my $.02 but I personally live in the Oregon (Bend) area and have grown up here and all my rental investments, etc. are out of state. I find that i'm getting much better cap rates elsewhere. Oregon has a low pop. density and I find that in the market conditions (currently as of 1/12/16) , that good rental areas or higher density areas with good renter pools are overpriced and offer low cap rates. The areas that have attractive pricing end up being places like Pendleton, Hermiston or Madras, etc. and have IMO a poor renter pool / pop. base.

I personally house hacked a 4-plex myself when starting out, but I bought for $192k in 2012 ... theres no way I could do it right now. Having said that, i'm sure there are many who are craftier than I at acquiring good deals.

Although I will acknowledge that if your starting out it is much scarier (and impossible to 'house-hack') when working out of town. I would suggest that if you want to pick PDX to be your market that you operate in, then take a close look at what REI strategy lends itself to that market and pursue the path of least resistance, rather than trying to force your strategy on a given market (not saying thats what your doing). I spent a few months scouring the I-5 Corridor looking for buy-n-hold rental income props and couldn't find anything to get excited about, but now we are closing on 16 units out of state and will have a 14%-18% cash on cash return / cap rate given 75% or better occupancy. The numbers are there, but definitely require a little more initial startup efforts if going out of state.

Just food for thought. But I will say, if you can come up with something profitable in the valley area now, then it will likely pay big dividends later (or built in equity) that I wont get in my out of state portfolio.

Whats a house hack? You just splitting up the house illegally? I see nothing wrong with that.

0 Votes

Private Investigator. Its worked for me.

0 Votes

This GUY!

I've always thought that guys like you who know how to build having worked for medium size production builders in the past are really in the cat bird seat. You have the experience and contacts to make a great house and know how to manage time and materials. These are the hardest things to learn. However, the entrepreneurial spirit and plain old cash requirements stop you from doing this on your own. I would kill to go back in time and work for a builder instead of spending so much time getting degree's. You are rocking a rolling. Now go get more lots.

0 Votes

This article I saw yesterday really cemented the idea to never sell anything ever. I of course have sold property before and I am selling now. But, I've been stewing on the idea of never selling anything for any reason ever moving forward. This seems to be the only real way to make RE work to create a legacy.

Angelo is one of San Frans biggest property owners and he says he never sold. Heres the article.

http://www.sfgate.com/bayarea/article/Angelo-Sangiacomo-one-of-S-F-s-biggest-6684910.php

1 Vote

Originally posted by @Greg H.:

Originally posted by @Thomas D.:

One thing I neglected to mention. If your agent spends money out of pocket to "advertise" your listing get a new agent. The only thing that sells is PICS + PRICE. Priced right your house will sell in 30 days. If its on the MLS people will find it. They don't need ads or flyers or brokers open houses. Generating buzz is kooky Realtor speak for pay me 3%.

Think about this. If your neighborhood has 500k houses that are beautiful and some nut came by and advertised their own beautiful home in the same neighborhood for 300k you think that house needs a flyer, advertising or brokers open??? No way. Buyers (the market) recognize condition and price only. That house would be bought in under an hour. The market will tell you about your price. Is it deal or not based on how your house looks. You think its beautiful and it hasn't sold in a month well then you are dumb and you need to drop the price because the market disagrees. Let the power of the MLS mass market tell you what to do.

Totally based on the market you are in. Some markets drive people to the property and some markets you have to drive people to the property

I would disagree. Unless you are in areas that sell for under 40K (AKA super super cheap cities) per property if its priced right and looks good people will show up. And if you are buying under 40k houses why would you ever sell anything. Those things make money like a cash machine. Hello 200$ MORTGAGE. You can cover that mortgage by shaking your couch out at night and picking up the pennies.

1 Vote

All Forum Posts by: Thomas D.

Thomas D. has started 8 posts and replied 38 times.

Post: Just closed: a 12-unit apartment complex

Post: Just closed my 10th rental in last 7 months

Post: Building a 4-plex instead of buying one...

Post: Time to Sell Everything

Post: Time to Sell Everything

Post: Building a 4-plex instead of buying one...

Post: Locating a vacant property owner

Post: New Spec Coastal North Carolina

Post: Angelo Sangiacomo NEVER SELLS

Post: how much do you pay realtors?