All Forum Posts by: Benjamin Aaker

Also, you should consider how much cash flow you need. I recommend for many to keep cash flow as low as possible and build as much equity as possible. The interest rates do cut into the cash flow but not as much as you might think. The high interest rates will decrease demand and values will decrease, which means you pay less for the return you get. It certainly doesn't completely even out, but the difference is not always that big.

Hi Davis,
Thanks for fighting fires. That's a tough job. Congrats on going further in real estate investing. There's a ton of information here. I recommend reading everything you can to get started.

Hi Davis,
Thanks for fighting fires. That's a tough job. Congrats on going further in real estate investing. There's a ton of information here. I recommend reading everything you can to get started.

Another thing to add is to put more equity into the deal. You decrease the amount borrowed and the rate doesn't have as large of an effect on your financials.

Alyssa, you might want to reconsider house hacking a multifamily property. You said you want to run your massage business out of your studio apartment downtown. Why not make that your place of business and live in a unit of a multifamily. You live there so should be able to get an FHA loan and put much less down. At 3% down, you have $660k to work with. There are certainly a lot of details to go over, but you should take another look at this possibility.

You should move into larger multifamily. I love the passive income but if that is not your current goal, you can go bigger now and get the passive income later. Remember that you must have lived 2 of the last 5 years in the property to take advantage of not paying cap gains tax. If you let it go longer, you will lose that benefit. That tax savings should be factored in your decision.

Hayden, thanks for posting your question. We are happy you are here. The first step is to read a lot. Start with Keller and Papasan's The Millionaire Real Estate Investor. If you are set on flipping, use these forums to find some flippers in your area. Many would be willing to take you on as an apprentice. I agree with @Scott E.: be sure to not let it impact your studies right now. 

Hi Julia,

It's hard to get a loan on a mobile home. Many of them have very little value. You are essentially purchasing a box that produces rental income. Are you purchasing the land as well? Without the land you should run away. Sounds like you are planning on paying cash. Sinking that much money into it decreases your return. At $800 a month, less one month for vacancy, 15% for repairs, 8% management (don't forget to pay yourself if self-managing), tax and insurance, you have $5,424 a year or 9.8% cash on cash return. The numbers are decent. The downside is you'll have a hard time pulling the money out of the property for the next investment (e.g. a line of credit or a finance) and will have to rely on the slow build of the annual cash flow. 

Vladamir, have you considered house hacking? With your steady trucking income you probably can get an FHA loan on a four-plex with very little down and live in one of the units. It would require a modest down payment. I suggest reading The Richest Man in Babylon by George Clason and putting away 10% to get to that down payment.

You need to first write up a pet policy. That policy also should state a fine should the landlord or manager find evidence of a pet. The fine should become part of the rent.
Keep in mind that some people require emotional support animals and these are able to circumvent no pets rules. Make sure you know the HUD rules and any local ordinances around these.
Consider just allowing pets from the get-go. You can make some extra money in pet fees.