All Forum Posts by: Troy Forney

thanks to all for the replies.  For now I am fine. I guess if I start getting nervous I just pay some down. This all makes me feel better to know what ever else is doing. 

I am getting ready to close on my 4th house within a year. I had a goal of 20 houses by age 50. I am 43 now. I have been moving forward pretty quickly acquiring good cash flow and equity. It suddenly occurred to me at 10 deals I will have $500,000. (Roughly) debt on these properties. I know they will be paid down some. If I am averaging 40% equity on each house, do I need to worry about the debt if I have positive cash flow?  Any advice? Just don't want to do much too fast. 

I appreciate the feedback.  I do drive by the properties frequently, however, am considering paying the extra money to the management company for more frequent inspections.  It is a small fee considering the damage that can be caused.  

So I have heard of the 50% rule and also 40%.   I am currently working on my 3rd SF in less than a year and am closing on a 4th in a couple weeks.  I have so far completely rehabbed all properties.  I don't want a problem when I have tenants occupying the property.  I would rather do it while it is vacant.    What is every ones opinion on the amount I should be setting aside.  Occupancy is stable within these areas.  

Thanks for the info Mark.  I called Vangaurd, according to them, I can borrow form my simple plan, but would have only 60 days to pay it back.  So that does not help anyway.  

Thanks so much for your response. Actually, my savings is in a brokerage account. It is not breaking any record earnings right now, but certainly more than 1%. I see you are not an advocate of taking it from the retirement funds. I have kind of been leaning this way. I have almost convinced myself that it is only a 10% hit since I will eventually pay income taxes on it when I retire anyway. I have a good amount of money in there and half the amount would help me accomplish 2 to 3 more deals. I am certainly earning a higher ROI in Real Estate. So would this be a big mistake? I have finally faced my fears and taken a good leap. I now see what I wish I saw many years ago. I don't want to stop the momentum. Do you have an argument against taking some retirement funds.

Hi JD,

An important factor which I don't see mentioned is is it a typical home on a typical site or would a complex fee apply.  Often appraisal fees are higher do to complexity.  Location, zoning, GLA (square footage)  and site area are all factors which would affect price.  

I have two single family homes a recently purchased. Both are cash flowing nicely and I am wanting to go forward with a third. Problem is I am running out of funds. The way I see it, I have four choices. 1) Tap in to my Simple IRA (similar to 401k). 2) Take all my personal savings. (Having only 6 months reserves left for 3 mortgages. 2 rentals and personal res.) 3) private money lender 4) Refinance recent purchase in 6 months and pull $15,000. out. Increasing my mortgage payment and decreasing my equity. What do you all think? What makes the most sense financially.