All Forum Posts by: Account Closed

Ok here goes.... I’ve finally put some of the useful knowledge I’ve acquired over the years on BP into action. My strategy is buy and hold and I’ve just acquired my third deal. I now have approx $1M in rentals but am 90% leveraged. My properties barely cash flow because I’ve only put 5% down on each. Rents in my market (Phoenix) are improving drastically at the moment and appreciation has been EXTREMELY healthy over the last 5 years. Normally if I read a post like this from anyone else I’d advise caution but bear with me....

My strategy is based around maximum leverage to acquire as many rentals as I can right now. My safety net is that I carry a hefty reserve. My question to the group is, given this set of circumstances.....what kind of cash reserve would you be comfortable with?

@Christopher Nemlich absolutely. I regularly receive deals from wholesalers with $40-$60k value add opportunity @$150-200k purchase price. You may end up leaving more money in the deal than you would have 5 years ago, but there are ALWAYS deals to be made here in Phx.

@Gregory Goldberg I love to hear that others are targeting the Phoenix market. As an Arizona native, investor and realtor myself I’m extremely biased toward this little slice of paradise!

As an out of state investor I recommend that you clearly indenting your investment metrics.

Examples might be COC return or IRR.

Phoenix is a melting pot and the boots on the ground will best help you identify target areas. One block from multimillion dollar houses near the Biltmore are a stack of run down multifamily apartments so understanding the demographics is KEY. I’ll say that again, understanding the neighborhoods is KEY!!!

Any real estate agent worth their salt can furnish a list of lenders, inspectors, contractors, etc. I’d be happy to help with any questions you have regarding the cap rates of different areas and the trends in the local market. Welcome to BP Phoenix!

@Brian Ellis $30,000 in college debt for 1460 days of partying is not expensive. That’s less than $20 per day. Money well spent! I’d do it again if I could rewind the clock. 😉

@Jeffrey Masessa

If I were 17 right now I wish someone would give me the advice that I am about to give you.

100% become an electrician. I’ve worked in the construction industry for 15 years now and I can tell you this career path is a golden ticket. 5-10 years down the road you can start your own business. If you pair that with a real estate license and make the connections with the buyers and builders your network will grow infinitely. You’ll have zero student loan debt and you’ll be able to pick and chose the jobs you want to take in no time. Skilled labor is in crisis in the construction industry right now and for the foreseeable future with the immigration stance of the current administration.

You’re welcome.

Al Rubin. I’d be happy to help, pm me. 

@Jay Hinrichs

@Carlos Medina

@Kris H.

@Ted L.

I’m cracking up today reading the transcript of podcast #364. This girl straight up highjacked my idea and they put her on the show! 😂 Jk, but seriously, I love the strategy she has put to work and I’m copying it 💯

@Tom Port happy to help you search for and analyze any deals. I’m a realtor here in the valley and I specialize in North Scottsdale and North Phoenix. I have several rentals in the area and a good gauge for market rents.

@Cameron Lam Good stuff man! I’ve considered the room renting structure myself. Would you be willing to share a sample contract with a fellow member of BP? What part of the valley are you targeting for the next few? 

I’m curious what everyone’s number is? What would it take for you step away from the game and live on your spoils?