All Forum Posts by: Derrick W.

I don't do trees or electricity.  If I decide to go foward on this it will for sure be hired out. 

good post, I'm debating on this very issue. I can do a cash out loan and still have positive cash flow and the ability to buy 2 more houses. 

If I sell I can buy 3 houses. It's the same either way but I have to figure which one brings the greater monthly income. 

I do plan to mention the trees in the negoations but if I can pull off the price I plan to offer then I'm sure it will be an "as is" buy. The house is not officially on the market but a possible flip. 

Trees are beautiful.....until they die. Then they are very expensive.  Aside from a sad tax break how should I handle trees. I'm sitting in front of s very cheap house but has 2 dead tress in the yard. I can't see a way to recover the money spent on removal. 

I'm looking for advice. 

here is my plan. 1. I work with c+ to b+ rentals. No matter how bad things get there will always be b&c tenants. An A can move to a B but there is no one to replace an empty A. 

2. My loans are structured as such that I can drop my rents to just break even and I can still survive.  This kills cash flow but is an emergency plan. 

3. Reserves! I can survive 3 months with NO renters. This is highly unlikely but possible. I plan to Keep adding cash to this account until I reach a 1 year "safety net". This is not my repair reserve, it's a "pay the bank note" account only. 

I over plan ahead. The old saying " pray for peace but prepare for war" is a good motto to live by.  No one can be 100% ready but I hope to  be as close to that 100% mark as possible. 

* receiving.  Not reviving!

"Consider the tortoise who makes no progress until he sticks his neck out."

I love this!!!!!!

I'm may be wrong but I look at paying my debt as putting money into an account that I can't touch. (until I sell)   If your net worth is 100k(debt) with a 15 year note, then in 15 years you have a 100k in the form of a house, in theory. So basically debt is me forcing myself to set aside x amount of dollars. I hope this works! I have my loans timed as to start being paid off the same time I retire. If it goes correctly, the year I retire I get a pay raise to to reviving full rent  then every year after that is a paid off house with an increase in income. Yes the market will rise and fall but keeping in mind I only put 20% down..... If my 100k house is only worth 50k(at pay off)that's still a greater increase in my money than a special interest account will ever offer.

thanks @Joe Splitrock   I read that definition but was wondering if it had a specific meaning in the the rei world like cash out loan, or saved up cash or something along those lines. I guess it just has the broad meaning. 

can someone please define leverage. 

I know nothing about having a corporation. I need info from the ground up!