All Forum Posts by: Zak Parks

@David Greene hey David. Did you find a good portfolio lender in Jax? I have a few rentals here that I’d like to refinance.

@Jack Ropp I just wanted to chime in because I'm also a recent graduate, 23, with 50k in student loans, and just closed on my 22nd unit. I have no interest in paying off my student loans early for the same mathematical reasons that many others have already mentioned. To each his own, but I think the biggest risk you can take is not taking any risks. Go get em!

@Mike Dymski @Dave Foster great points about refinancing. We have done that with some. At this point, most of our properties don't have much more than 30% equity, so after banks costs, it would nullify.  You're absolutely right about using other people's money. Thinking that we need to sell in order to buy is a scarcity mentality and I need to stay away from that haha.

@Rachel Steenland Haha, that scenario was just an example. But properties like that are down here in the South in small towns that aren't likely to appreciate.  

Happy Thanksgiving BP! I've been tossing an idea around and I'm hoping to receive some feedback. 

Little background info: Our objective is to continue building a portfolio of passive income rentals. We've done pretty well thus far, only purchasing 2% deals or better. These are mostly in the small multifamily niche. The long-term goal is to move into apartment complexes. 

Recently, I've been throwing around the idea of selling these and taking profits(we forced appreciation through raised rents and/or rehab). I've run all the numbers(I live and die by the excel sheet) and here's the long story short: we could sell our properties, net some cash, put that cash down on a larger property(hopefully 2% deal like we've been doing), and cash flow 60% more than we were on our previous holdings!

Quick hypothetical in case that the last paragraph didn't make sense:

• Purchase property at 50k
• It rents for $1000/mo
• It cash flows $300/mo
• Sell it for 75k because it's appreciated
• Net a 25k profit(we wouldn't actually, with commissions, closings, taxes etc, but I'm keeping this simple)
• Now we can put 25% down on a 100k property
• It will gross $2000/mo(2% rule)
• Now we net $600/mo cash flow.
• Our cash flow has doubled because of the snowballing!

So BP, poke holes in this plan please!! Is there any reason not to start snowballing now? Has anyone else been doing this? My biggest concern is selling these solid, cash flowing properties and then not finding that next larger property. On the other hand, maybe we locate it first and then 1031 exchange the older properties, increasing our new cash flow even more if we don't have to pay capital gains, affording us a larger property. I guess I'm thinking out loud at this point, but I'd love to hear your thoughts! 

Hi BP!

I'm in the Greenville area and have been thinking about a new build project. I have limited experience and no new construction experience. I was hoping somebody might be able to point me to a trustworthy general contractor they've used in Upstate South Carolina for a project like this. One more question while I'm here: any idea what one can expect to pay the city/county/state/whoever for permits in total before breaking ground? Thanks for your help!

@Brandon Redfern Spot on! You mentioned the town by name but I'll message you specifics. I still have very mixed feelings about these little towns, but the saturation in Greenville has made it tougher to hit my target. 

thanks! @Juan Pacheco

@Scott Lepore haha don't tell anyone else!!