All Forum Posts by: Zach Adams

Originally posted by @Clayton P.:

Congrats on the purchase! You're nationwide ;)

What are the numbers on this one? Given the area I'd think the rent-to-purchase price ratio would be a little tricky.

Just getting around to posting. Got in with an FHA and plan on re-fi'ing in a year to get rid of MIP. 0.7 rent ratio and roughly 7% cap when i move out. Should cash flow ~$700-800/mon when I leave. Plan on being in it 3-4 years.

Zach

Originally posted by @Steven Forman:

that's awesome....congrats. I am from San Diego and looking to fha into a duplex, triplex or four plex also. 

 Any luck on your search here in SD?

Happy holidays BP Nation! What a great year this has been for me and my investing! I bought another SFH rental in May and bought a live-in Duplex in November. I wouldn't be where I'm at without the inspiration I've found here as well as the guidance.

One of things in my investing and planning that I really measure is my Savings Rate.  I initially came across this idea from Jacob Lund Fisker and the Early Retirement Extreme folks.  I read his book, and while some of it, no surprise, was a bit extreme, I gleaned some valuable information that I've taken with me into my investing world.  His premise, if you're not aware, is to get VERY aggressive with savings, like 80-90% of your income.  

The ERE folks are very creative about living expenses and greatly reducing them. So already looking at ways of cutting spending and living below my means, I started in REI a few years ago. Another influential character was B Kyosaki and his Pay Yourself First idea, which I've been doing for a long time. So without getting into my whole lifestyle and ways I've eliminated excess spending to boost savings (so I can invest!), I'll just talk in some round numbers.

I got serious about a Savings Rate number and started at ~20-25% net income, which at the time was $1200 (Savings Rate)/mon. Later I boosted my SR to $1800/mon which was around 40%. With my income from my rental properties and the large reduction in living expenses from owning a duplex, my monthly SR is ~$3000 (not including bonuses and commissions from W-2). This is money that automatically gets taken out of my account and there's room after all expenses are met as well. I don't budget myself or go crazy monitoring where my money went. But I am excited at the increase and already have plans to get this number up to $4000/mon in 18 months. Yes, I realize that a bulk of this money is W-2 and not from investing. 15-20% comes from REI. But in a few years I'm going to have the cash to get into a large apartment.

How do you approach savings, planning, budgeting?  I see folks on here that want to invest in RE but have no money.  That has not been my experience.  I'm sure there's plenty (D Lindhal) that did it this way, but I like the Grant Cardone model: need money to invest? make more money! 

Happy holidays and may everyone prosper in 2016!

Zach

 Ain't that the truth!

Super excited. Closed on my third property today - a duplex in North San Diego county. I'm going to be owner-occupying and used an FHA to get into the property. Very excited about this one. Going to live in it for 3-4 years before doing it again. I met my broker at the local REI club which I got into from BP. I also have 2 SFHs in Atlanta that are doing great and have healthy cash-flows.

Listened to the webinar last night on MFHs and loved it! Loving REI and owe a lot to BP. Thanks for the continued support everyone.

Zach

Mya Austin leverage early, pay down later.

Jack Randall sounds like a good plan. A few things. You will need to live in the duplex for at least a year according to FHA requirements. Next getting a fixer-upper with an FHA will be limited depending on the condition of the property. The house needs to meet all their standards set forth by FHA. Definitely something that needs serious work probably won't work. You could look at an FHA 203k however, but there's limits to the dollar amount on these. Some rough numbers would help to better comment on your plan. Zach

I'm stoked for this!

Points are an additional amount the buyer has to bring to the table. Generally to secure a certain financing rate. A point is 1% of the purchase price. In this case 1 point would be $44,000.

Originally posted by @Sinaloa Paisa:

Originally posted by @Zach Adams:

Originally posted by @Sinaloa Paisa:

Originally posted by @Todd S.:

What is your target acquisition range?

Not sure. Depends on which range will produce the best ROI and deal for the capital I have and/or can get either from a bank or hard money lender.

 Sounds like you need to further refine your goals.  Are you going to buy and hold? Flip? Single family or Multi Family? Are you trying to get in a lot of deals quickly or accumulate over time? For me, I have a $25k minimum that I try not to go under.  This is in case things go wrong such as major rental property issues, car goes out, etc.  $40-60k on top of that built up to do 1-2 deals.  

 I plan to flip and sell. 

Single and/or multifamily, just depends on the numbers. What ever projects as the best deal to make me money that I can acquire. 

Starting out as a newb I will do 1 or 2 deals at a time. Atlas I think that would be the wise choice. 

 Good luck.  $100k sounds like a good amount of capital.