All Forum Posts by: Chris Collins

I'm learning how to analyze deals, so bear with me?

Here's the "deal" I analyzed. 

https://www.biggerpockets.com/calculators/shared/3...

Here's the loopnet listing (I know loopnet is where deals go to die, but I'm using it to learn how to analyze deals, good and bad).

http://www.loopnet.com/Listing/19454637/2827-Danah...

Its 2 houses on 1 lot.   I would live in 1, and rent the other out.  What do I need to be considering / change / understand if I'm living in 1 house, and renting the other out?   How will it affect those numbers in the grey box?  (Cash flow, etc)

Thanks!

-Chris

Thanks so much to everyone for the replies. It was helpful to learn other thought processes that I (as a NEW investor) may not be thinking about.  

My question is this, and it applies to Turnkey companies, as well as other investors selling properties.

"Why don't they buy it themselves if its such a great deal/ROI?"

If a turnkey company actually believes in the product they're marketing as a great ROI for the potential client and has such great cash flow potential, why don't they just get a loan and put the 20% down on the property themselves? Why sell it and get their small 1-time commission?

Thanks,

x CHRIS x

Thanks @Marco Santarelli , I appreciate the kind and encouraging words! Just finished listening to all your podcasts that are up, and I just wanted to thank you for putting out such clear, thought out advice. If anyone hasn't listened to his podcast Passive Real Estate Investing, its great. There's no 'fluff' or 'jabbering' like a lot of podcasts. He just gets right into it, in an easy-to-understand way that has really opened my brain up.   So many podcasts I hear are like, 60 minutes, but only about 20 minutes of usable material, the rest is 'personality' from the hosts, and I don't have time for that! :)  

Marco, look for a call from me once I get more organized here definitely!  I love what your company is doing, and am organizing my questions to bring to you and your team.

Thanks @Ali Boone .  As I continue learning and prepare to make some steps, I'll definitely be reaching out!

@Ali Boone Thanks! Loved your feature on The Rental Income Podcast. No joke, I have your website saved in my toolbar on my web browser. Hot pink and everything! I'm so intrigued by the What's Available Wednesday section.  I definitely have plans to email you and ask some more questions, but I didn't know you were in Venice. Maybe we can just meet for coffee!  Talk soon.

@Matt R. I think that's actually pretty solid advice. I mean, I've rented many different places around LA and SoCal and I've never missed a rent check or had to be evicted. So I guess as long as I spent the proper care and time to screen tenants than there's no reason I couldn't find people like me too.

My other huge turnoff in CA is the price of real estate, though I suppose if the numbers still cash flow then its just a matter of securing the loan...  I'll give it some more thought!

Thanks everyone, feeling welcome already!

@Jay Hinrichs turnkey is definitely something I'm interested in. It does seem to be one of those love/hate things though, with plenty of articles for and plenty against.  But it seems for a beginning investor that its a great way to dip my toes in the waters.

@Matt R. I'm sure CA has good investment options. Do you think that the 'renter friendly' laws around here are a big enough deterrant to keep you away though? I just envision a renter who seemed great in interview, decides to stop paying rent and then the eviction process is hellish due to their 'rights' to not pay.

@Billy Maloney I'd definitely enjoy a chat sometime about your first time experience and how you got motivated to 'make the leap' so they say.

@Account Closed cheers! Let's both kick *** here then! BAM!

Hey there,

 My name is Chris Collins, 33, from Los Angeles, CA.  Married with a 6 month old son.  I work in the TV industry as an editor, and also play drums in a few bands.  I make a pretty solid paycheck, but having a child and a wife who now stays home to be a mom, made me seriously re-evaluate where every dollar goes in our household.  

Over the past year I've been listening to a rental income podcast, reading some finance books, rich dad poor dad, etc. and together, my wife and I have decided to 'get into rental income real estate' as a plan for the long term to have passive income as we retire and not just rely on our savings.  Also to leave as a legacy to our son and other children if we have them.   *If only it were that easy.

The good: We have a good amount of money saved up to start using as down payments.  We have only 1 car payment. We rent our home now so we have very little 'debt.'

The bad: We live in LA, where home prices are sky high, and where tenants have all the power, and taxes are high.  So we want to invest 'elsewhere'.  But that is an extremely overwhelming notion, where to start?!

Also, we bought a condo in 2005, and short sold the condo in May 2012 (strategically, hired an attorney, from start to finish the process was 3 months, barely even missed any payments).  Which would be fine since the rule at the time was 'no loans for 2 years after a short sale' but now that has been switched to '4 years after a short sale' so we're taking the time to learn until we can get another loan I suppose.

So our goal is to figure out how/where to start investing, focus on an area outside of CA, and purchase our first rental income property.    We are definitely interested in duplex, triplex, and fourplex if possible, over single family homes.

Short term goal: learn the ins and outs more than we currently do. *I basically treat this as a 2nd job here reading, listening, learning. 

Mid term goal: Purchase our first property out of state and see how that goes

Long term goal: $20k of net income per month from rental properties.   Move to Hawaii and retire.

Bonus goal: $50k of net income per month from rental properties.  

Thanks in advance for everything I'll be learning on this site! Looking forward to contributing what I can as I learn myself.

x CHRIS COLLINS x