All Forum Posts by: Michael Puwal

Both.

 I am an audio engineer and producer also.  

 Michael, do you have any pics of the Painted hardwood floors you have done?

I made a little bit of money in the music business (after too many years of trying). I bought my first house in 2001 and house hacked. In 2002 I bought my first rental. I had some money to back it up and loans were really easy to get back then. I kept buying when ever I can. Usually one or two a year. Mostly with cash. You could find great deals on real estate back then. HUD houses and REO's were everywhere. I did this around the Detroit suburbs. Around 2012 I heard of a landlord selling everything he had. So I bought it all. I had some equity lines of credit already in place on a couple of my properties that I was able to pull from. It took 2.5 years to get the houses up code and livable.

  I discovered the Bigger Pockets podcast in December of 2015.   On there I heard an investor talking about getting an unsecured line of credit to buy properties with.  You can offer cash, It looks like cash to a seller.  Then refinance after a few months, pay off the line of credit and do it again.  So I went out and found a bank that would give me such a credit line which is what I used to close on my latest duplex deal today.  For some reason it is really difficult these days to get a home loan or an equity line of credit, so I went this route.  

  I hope to close on another duplex next week, then look for a lender to pull the equity out and start again.  If anyone can suggest a lender that can help with equity lines on cash flowing properties, let me know.   In the past I went after houses in terrible shape and rehabbed them.  I mostly hired the work out.  Lately I have been going for houses that are already occupied.  Its allot less work and instant cash flow.  The draw back is the price is higher. 

  My next goal is bigger multi family properties.  I have been looking at 20-30 unit buildings all year.  I almost had a couple.  I can use partners in these, if anyone is interested.??

  All of this was easy in the beginning.  I had extra money to pay cash for a few properties and loans were easy to get.  I think starting out these days may be a little harder, but it can be done.  

  I hope this helps someone and my story makes sense.  I am not much of a writer.  

Thanks for listening. 

Call Jeanette at RPM Detroit for management.  She does a great job for me.  I sure she can advise on better parts of town to buy.

  I closed on my 16th unit today with no money down.  Closing next week on my 18th.  Thanks to Bigger Pockets for the inspiration and education. 

I have percentages figured out.  I was just wondering what other people were doing with that percentage that they save.  Do they keep saving for ever for a property or stop when they reach a 6 month reserve?

The Bigger Pockets people often talk about putting capitol expenses, operating expenses, vacancies etc, in the budget when analyzing a property.  What are general practices for this?  Do you stop after saving enough for 6 months reserves?  Do you save the money for ever?

Hello.

Does anyone know of an insurance company that does portfolio policies in Nashville, TN or Detroit, MI?  One policy that covers several properties?