All Forum Posts by: Mike Bargetto

@Kyle Piasecki I am excited to see what Park Circle looks like in 10 years. Congrats on your double. 

@Jared Bourjolly and @Joseph ODonovan sorry for my late reply. My friend is taken care of now and has an agent. Make 2019 the best one ever!!!

@Peter Aziz that is incredible. We have a DM going now so I will add my request to our private thread. Thanks for sharing. Consider looking into whole life sometime. There are so many benefits to it. 

@Gregory H. He is looking for a SFR in the 275k range, area unknown.

A good friend of mine is in need of a strong Realtor in Philadelphia, PA. We are looking for an experienced and professional full time agent to do this transaction. 

@Peter Aziz 30% of our gross rents are sent off to our Whole Life insurance policy so they remain liquid but still earn a return while not being used. You could find spreadsheets for CE and break the whole thing down, absolutely. We don't do that necessarily but I am sure folks here could chime in and provide their two sense. I think that would be a great conversation.

In regards to V and M, there are so many variables but you could get a ballpark idea calling vendors/PM's, sure. Neighborhood classes will produce different numbers for these 3 categories but it also depends on the product you buy and what condition it is in to begin with. I hope that helps.  

@Peter Aziz some good news for you. a 2% increase is far more than a 2% "pay raise". Think about the fixed costs associated with your rentals, ie your PITI. Said costs are already accounted for and don't go up as rent increases. Take a 2% increase on your rent, set aside your typical % for V/M/CE and then divide by current cash flow.

example:

Rent-$1000

Cash flow-$200

Rent increase-2% or $20

Less 30% (V/M/CE) or $6=$14

14/200= 7% pay raise

Also, it isn't just about cash flow as you have the other 3 pillars at work; Leverage, Appreciation and Tax benefits. 

The cash flow in this scenario alone allows you to live your current setup. The other three pillars will take you much further. 

Don't sweat inflation in life yet watch your back for lifestyle inflation! Haha

@George Lai I saw this message, I actively invest in this area and also live in California. Feel free to reach out to me if you have any questions.

@Account Closed that is awesome man and I am glad you are finding them out there. What a community we have here-iron sharpens iron. If you are ever in Santa Cruz, feel free to give me a shout sometime to talk rei. 

Have a great day. 

@Account Closed Like I have said before it isn't a dollar amount that speaks on the quality of a return, its a ROI in a percentage that describes an investment. If you are making $400-600/mo is that having accounted for vacancy/maintenance/cap ex? What was the down payment? If you cash flow a true $400 a month but your down payment cost you $125,000 then my point is made. However, bringing 2014 Bay Area to this conversation doesn't provide us with a whole lot of value because we live in a different market..unless you would like to sell me one of your units at the 2014 levels :)

I can't make a blanket statement that there are NO GOOD DEALS in the Bay Area. If you don't think this market is overpriced and you recommend a brand new investor to make her first purchase there with cash flow in mind then I am glad you aren't my fiduciary! Great discussion.