#20 rental was purchased today

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Originally posted by @Marcus Johnson :

Congrats on hitting your goal.   Although #20 sounds like a great number, I've noticed on this forum that most investors seem to concentrate on having the most properties and units possible.  The two questions we should be asking ourselves is it quality or quantity that matter and is it more important to have a higher cash flow with less units or would you rather have more units with less cash flow?  If A = units and B = cash flow, then c = avg cash flow per unit.   

What most people don't think about is that the more units and buildings you own, the more on average problems you'll have.  For example if investor A has 5 duplexes and investor B has 10 and they both have the same amount of money to spend on those units, that's 5 more roofs that need to be replaced, 5 more property taxes to be paid, 5 more sidewalks that crack and need to be replaced, 10 more water heaters to upgrade, 10 more furnaces that eventually go bad, 5 more yards to mow and do snow removal on, 5 more PM's if that's your thing, you get the point.  So more isn't always better. 

IMO, 5 properties with excellent cash flow is less risky and expensive than an investor who owns 10.   Which in turn mean for net income on average, which in turn means my wallet gets fatter.  

 it also means you have 1 vacancy in 5 homes and that's 20 percent of your cashflow.  as opposed to 1 vacancy in 20 and you realize it's empty 4 months later,  so to speak 

Originally posted by @Marcus Johnson :

@George P.

I believe you meant 1 vancany in 10 homes, which is 10%, versus 1 vacancy with 20 homes is 5% in the example I laid out initially.  

 maybe I confused you.  I meant 1 vacancy in 5 homes is 20 percent of cashflow. 

which is a hell of a lot more than the 1 vacancy in 20 homes.  at one point if you have the systems in place it's not that much harder.  most seasoned landlords will tell you, it's harder to have 4 than 34.

That looks fantastic!  It looks like the before pictures on this property no longer work.  Would you mind re-posting them?

I love that you have a system of finishes that they start to look cookie cutter.  Have you made any posts in the past or have details about some of the choices you make for finishes?  It looks very in line with some of the finishes I would like to implement in my projects!

Originally posted by @Tyler Weaver :

That looks fantastic!  It looks like the before pictures on this property no longer work.  Would you mind re-posting them?

I love that you have a system of finishes that they start to look cookie cutter.  Have you made any posts in the past or have details about some of the choices you make for finishes?  It looks very in line with some of the finishes I would like to implement in my projects!

 thanks, tyler. 

it think i listed most of the items somewhere in my other threads (i think i started announcing when i hit 14 or so), but i have no problem giving you the highlights again. hope i dont bore people though.

cabinets - Kitchen Kompact, home depot (HD)

bath tiles - http://www.homedepot.com/p/MS-International-Metro-...

faucet - http://www.homedepot.com/p/Delta-Foundations-Singl...

vanity - painted - http://www.homedepot.com/p/Glacier-Bay-24-5-in-Van...

vanity faucet - http://www.homedepot.com/p/Peerless-Core-4-in-Cent...

of this vanity - http://www.homedepot.com/p/Glacier-Bay-Shaila-24-1...

toilet - toto drake or american standard cadet

accent tile - http://www.homedepot.com/p/MS-International-Arctic...

kitchen tiles - http://www.homedepot.com/p/TrafficMASTER-Portland-...

most pendants - http://www.homedepot.com/p/Hampton-Bay-1-Light-86-...

sinks - http://www.homedepot.com/p/Elkay-Neptune-Drop-in-S...

lights - http://www.homedepot.com/p/Commercial-Electric-2-L...

bath timers - http://www.homedepot.com/p/Leviton-500-Watt-60-Min...

bath mirror - http://www.homedepot.com/p/Zenith-16-in-W-x-20-in-...

thermostat - http://www.homedepot.com/p/Honeywell-7-Day-Program...

tub - http://www.homedepot.com/p/Bootz-Industries-Aloha-...

disposal - http://www.amazon.com/dp/B00004U9JO/ref=wl_it_dp_o...

knobs - http://www.amazon.com/dp/B006HZ2NNE/ref=wl_it_dp_o...

sink grid drain - http://www.amazon.com/dp/B00GMR51XG/ref=wl_it_dp_o...

shower diverter - http://www.amazon.com/dp/B001AI1VMW/ref=wl_it_dp_o...

shower trim - http://www.amazon.com/dp/B001AHZRQO/ref=wl_it_dp_o...

bath fan - http://www.amazon.com/dp/B00EAD6PNE/ref=wl_it_dp_o...

now you can make your houses look like mine.

ovens and appliances - whatever was JUST over the cheapest, dishwasher around $300.

as for pics... they were linked to the original trulia listing, i will have to get that when i get back from vacation.

Originally posted by @Tyler Weaver :

@George P. Thanks!  This list is very helpful.

Did you refinish the floors or is that vinyl or similar?

 that kitchen came with laminate. not a good one, but i kept it. it's OK.

the rest is hardwood, that was in terrible shape. he had to replace multiple spots due to damage.. we had to stain it and i HATE staining it. but i do hardwood 100% of the time unless it's a slab.

@George P this is an interesting topic.

A line of credit to purchase RE investment properties - interesting concept! 

Are you using a home equity line of credit to accomplish your real estate goals?  We are just about to purchase our first rental property; and, it does take a lot more time to accumulate the amount needed for a cash purchase.  

Any suggestions?

From Nancy E.

Originally posted by @Nancy E. :

@George P this is an interesting topic.

A line of credit to purchase RE investment properties - interesting concept! 

Are you using a home equity line of credit to accomplish your real estate goals?  We are just about to purchase our first rental property; and, it does take a lot more time to accumulate the amount needed for a cash purchase.  

Any suggestions?

From Nancy E.

 yeah, that's the problem with the rentals... they suck a lot of initial capital and takes awhile to recoup what you put in. in addition, takes a lot of personal sacrifice to save up the capital for the second and third one. that's why the first year we bought 2. both took 4 months to complete each. this year i purchased 8 and renovated 6 so far (some turnovers too). 

best i can tell you is find cheap deals. every dollar you save in the beginning is a dollar you can put in the business. set a goal and dont get discouraged. even if you end up with just one, it's one more than 96% of the population (guessing)

i recommend whatever gets  you more properties. i still feel i know little about this business, i just make it fit my "mold" as i go. no set rules. probably not the best way, but this is what i know.

i have no problem if you hijack the thread. others are welcome to share their way too. i can learn something

Great Job!  Never stop working, never stop doing...buy as many as you can handle and keep going.  Double down on the mortgage and pay one off every 24-months and keep going!  I'm glad I found this Blog...this might be the only place where a job well done gets you a pat on the back in RE (friends and relatives won't).  Just keep investing you'll make millions but don't stop when you do.

-dr

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