All Forum Posts by: Avi Garg

@Tiffany Campbell Why do you think returns are not there on a sub 30k property? You have to pay back loans in any property you have a mortgage. If you can see returns in 100k property with a loan, then you should be able to see return on a 20k property. I would suggest using the BP rental calculator and run it for a 100k property and a 20k property and you will get your answer.

@Nik Krohn No repairs yet but will need to do ~$1k in repair which is mostly tuck job on the outside. The numbers are after CapEx, Vacancies (5% each) and Maintenance (10%). I did not purchase this one with cash. However the next property at ~$23k is cash.

Travis Beehler is another investor who answered a few of my questions and helped me understand the market a bit better. Somehow I am not able to tag him here. 

@Maggie Lalor is the realtor I used and she's awesome. She's on BP. I am unable to tag her as well. Funny thing is I tried searching her name here and it doesn't show up in people and had to go into the forums to find her post and then get to her profile.

@Mike Carr A mix of cash, conventional and commercial/portfolio lending. I have a job so I don't have to use the rental money for living expenses and I can use that money to get more properties. In addition to accelerate, I am thinking of selling my primary residence (condo in the SF bay area) and take that equity to buy few more properties. 

@Minh Doan I manage through property management company. Its possible to do out of state investing but you need to find a good team to work with

Thanks guys. Looking forward for the next one and then will take a break with sub 30K SF and try Multi-Family

Finally closed on my first sub $30k property. This is my first investment since joining BP and 2nd overall. Some quick numbers:

Purchase price $19k

Monthly rent: $715

Cash flow: $330

@Travis Beehler

I was inspired by @Travis Beehler post on his 7th rental in May 2016 and that motivated me to look into sub 30k property in St Louis, MO.  He helped me a lot getting started on this journey and now with one already closed and 2nd closing in 2 weeks, I have started my journey into passive income and hopefully retire in early. I plan to scale it up to 35 doors (or $10k/month in passive income) by end of 2017. 

Lesson learned: Keep track of the paperwork and make sure everyone in the chain gets the updated paperwork. I renegotiated the purchase price to 18k but the lender did not the updated docs and 1 day before closing, this came up. I ended up paying additional $1k as the closing had already been delayed a month and to fix the paperwork it would have been additional week or 2. Some of you might say that I should have fixed the paperwork but I guess I was impatient at that point. 

@Don Tillung Haven't received anything from you yet. Is the property still available?

@Roy N. @Brian Burke Thanks for looking out

This post is inspired by the recent (ok a month back) success story posted by @Joe Fairless

Anyways one of the ways Joe mentioned to break into this space is to offer your service to underwrite deals initially. I am an MBA student and would like help the apartment investors/syndicators by helping them underwrite deals (for free unless someone really wants to pay) so that I could learn from experienced people in this space. My plan is to learn while I am in school and when I am done, I can hopefully execute a deal myself. 

Any help/tips/pointers appreciated.

@Bryan Dunalp ... CC offers 2 ways for 0%.. 

1. 0% on purchases XX months - For this you can do ebay like you described but it will be expensive and i don't think ebay allows the full payment for a car through CC. What you can do is send money to your wife/friend/parents (basically who you trust) through the multiple platforms -Paypal, Amazon payments, venmo etc. They will charge a 2-4% fee to the person receiving the money. Remember all of these platforms have a limit before they report to IRS (usually the limit is $20k though check for yourself).

2. 0% balance transfer - You can do a combination of the above but will cost 4-6%. However, talk to the credit card provider and see if they will allow you to receive the balance transfer in your bank account. Also for some CC you can balance transfer into them so they show a negative balance and then call the bank and ask for a refund (google which banks allow this).

As others have mentioned, be careful with the money. You still have to pay the monthly minimum and if you miss a payment, you will start paying the high interest rate. Have an exit strategy in mind, in case your appraisal at the end of the year doesn't come close to the amount owed.