All Forum Posts by: Zach Ward

Everybodies circumstances are different. If you are young (I'm 34) and you have a reliable W2 job that can bale you out in a pinch (I'm an RN so have excellent earning potential and job security) then be aggressive with leverage. I shoot for a minimum 20% equity with goal at 30%. Do the math. If spending 10 years paying down one mortgage is only going to increase your cash flow $300 a month was that length of time worth it? I made one 20% DP= 16k I saved,and turned that into 3 more houses that I put nothing down on. Total of 6 now in 2 years cash flowing 2k a month total. You make your money by buying below market and then using equity to absorb more properties. Keep in mind the more properties you have the better you are hedged against a vacancy or repair. 1 property in portfolio means 100% vacancy or 100% repair cost. If I've got 10 then I'm only 10% vacant. Put cash flow back for "rainy day" fund. Then U can start using OPM

(Other people's money) to buy more property instead of working doubles and over time like I did with my first purchase. I want to retire in my 40s with 20 plus doors, not have 2-3 properties paid down in my 60s and just get by. Figure up your R.O.I.!!!

You want 6% or you want 46%? Power of compounding interest is most powerful force in universe said some smart guy way back when ;)

Everybodies circumstances are different. If you are young (I'm 34) and you have a reliable W2 job that can bale you out in a pinch (I'm an RN so have excellent earning potential and job security) then be aggressive with leverage. I shoot for a minimum 20% equity with goal at 30%. Do the math. If spending 10 years paying down one mortgage is only going to increase your cash flow $300 a month was that length of time worth it? I made one 20% DP= 16k I saved,and turned that into 3 more houses that I put nothing down on. Total of 6 now in 2 years cash flowing 2k a month total. You make your money by buying below market and then using equity to absorb more properties. Keep in mind the more properties you have the better you are hedged against a vacancy or repair. 1 property in portfolio means 100% vacancy or 100% repair cost. If I've got 10 then I'm only 10% vacant. Put cash flow back for "rainy day" fund. Then U can start using OPM

(Other people's money) to buy more property instead of working doubles and over time like I did with my first purchase. I want to retire in my 40s with 20 plus doors, not have 2-3 properties paid down in my 60s and just get by. Figure up your R.O.I.!!!

You want 6% or you want 46%? Power of compounding interest is most powerful force in universe said some smart guy way back when ;)

Everybodies circumstances are different. If you are young (I'm 34) and you have a reliable W2 job that can bale you out in a pinch (I'm an RN so have excellent earning potential and job security) then be aggressive with leverage. I shoot for a minimum 20% equity with goal at 30%. Do the math. If spending 10 years paying down one mortgage is only going to increase your cash flow $300 a month was that length of time worth it? I made one 20% DP= 16k I saved,and turned that into 3 more houses that I put nothing down on. Total of 6 now in 2 years cash flowing 2k a month total. You make your money by buying below market and then using equity to absorb more properties. Keep in mind the more properties you have the better you are hedged against a vacancy or repair. 1 property in portfolio means 100% vacancy or 100% repair cost. If I've got 10 then I'm only 10% vacant. Put cash flow back for "rainy day" fund. Then U can start using OPM

(Other people's money) to buy more property instead of working doubles and over time like I did with my first purchase. I want to retire in my 40s with 20 plus doors, not have 2-3 properties paid down in my 60s and just get by. Figure up your R.O.I.!!! 

You want 6% or you want 46%? Power of compounding interest is most powerful force in universe said some smart guy way back when ;)

are there no credit unions or small,home town, banks where you are? They love landlords. Open an LLC and use one of them to refinance your loan. Who cares if your APR goes up a little. It doesn't make a huge monthly cash difference. Also, who cares if you have a bunch of equity with no cash flow...you can't eat equity, cash is king. Renters are paying your interest not you. My preference, 20% cash on cash return and about 30% equity for decent leverage. I want 200-250 monthly positive cash flow to play with or save.

(not tax advice just what I've been told to do by my cpa in Louisiana)

I am the sole proprietor so moving money from my personal account to my business account and back and forth is OK since it's all traceable. I do have a separate account for business and separate escrow savings account and credit card. According to my CPA I can draw cash out anytime I want without issue and go to strip club and "make it rain" (not sure he worded it exactly like that but close) Once again if I documented my profits/losses and expenses accurately that cash I "played" with was accounted for.

He files it in one tax return since I'm the only member of my LLC.

According to him the IRS doesn't care.

For legal risk, however, a lawyer may give different advice and say to file separate returns but I'm guessing.

Best to consult with a Pro. Most will give a free consultation.

Do utility companies send Bill/reminders with due dates to pay...why yes they do and I'm glad because everybody gets so busy they "forget" I know I can't always remember what's due and when without my E-mails/auto text/ect... so send a text. It's 2016 and tech makes things easy. I send a text to all my tenants day before it's due and it works fine for me. Now, if they are late after my monthly reminder then it does become their problem. You can be stern and hold them to lease without being a D--k about it. Catch more flies with honey which means less of your day fuming over something trivial.

I'm sticking with my antique white. It hides dirt and is dark

I've been doing for over a year also. Convenient for me and them and makes my keeping up with rents easier seeing as how with modern online banking they can add description (address of rental property) of deposit.

If I have multiple properties in one loan. What are the requirements to get one of my home titles released to me. 

$194k market values

$144.8k liens

My total LTV is currently 75% .

Would be trying to get my 25k property released.

@Tom V. I agree... Educate yourself first. I saved my first DP over a year before I bought my first investment property. But whatever you do dont let analysis paralysis get you. Your first deal doesn't have to be "perfect".