All Forum Posts by: Todd Merry

Thanks Alan. Any need to have the latest version (2009), or are you fine with the 2006 version?

Jon and Mike,

Thanks for your counsel. I can see that my target has been a little off. I appreciate your advice. My two properties have been a great learning experience and I really do enjoy the management side of things. I've learned some lessons, and I want to be all the sharper in the future.

So, getting back to a question I had, how do you secure these types of properties? These types of deals would have to be a short sale/foreclosure around here, or acceptance of a low ball offer. Do you have an agent willing to make these offers, or do you submit them yourselves?

Thanks again,
Todd

Thanks for your replies - I really do appreciate it. Your calcs are interesting to consider. I've had rentals for a couple years and have never paid out 50% in maintenace, especially with all the tax breaks (mortgage interest, taxes, maintenance, etc). But I've been proactive at taking care of potential problems.

However, your point is well taken. As we look for more properties, I see that in order to get really good cashflow (not just breaking even) it will take a lot of "low ball" offers. I suppose if I put enough of these offers out, someone will bite. Sound right?

Jon,

I appreciate your advice - clearly you've been doing this for a while. I guess I'm not too far off. Your example of $300k producing $500/unit would give a GRM of 12.5. The building I purchased has a GRM of 11.2 (purchase of $440k with Monthly gross rent at $3275).

Great advice, I really appreciate it. I spoke with multiple investors familiar with the local market before buying this fourplex. They all agreed it was the best deal around here. Finding something that provides 2X the PITI would have to be out of state. As a "hands on" guy, I'm less eager to look for something so far out of my reach. For those of you who are spread out that far, how do you keep tabs on your properties? How do you know you are getting your money's worth for repairs/upgrades and that they are done right?

Thanks!
Todd

So how much debt is too much? I feel like I should have more of an emergency account built up before I take on another loan. I've heard a good rule of thumb is 3 months worth of payments in savings for each rental property. This would take me a while since I am just barely breaking even. Any thoughts?

Diane - thanks for the info. I'm actually pretty handy with Excell and built a detailed profit/loss spreadsheet to examine prospective properties. I have about 180k in equity on the single-family, but am wondering how much debt I really want/need to take on. I'll definetely check into those books.

Thanks again,
Todd

I have a Single-family and a Fourplex that are rented out. Between the two I'm positive, but not by a huge margin. How do most of you gather more properties without having a huge cashflow? Maybe start a business?

I have considered the option of buying a vacation property that could be rented out through a time-share company. Does anyone have experience with this? Any thoughts on vacation properties with the current economic climate?

Thanks

Thank you both, sounds like QuickBooks may be the best option.