All Forum Posts by: Bryan Ester

@Bryan Ester I don't mean this as criticism, only to be helpful, but if you have that much money to invest it sounds like your level of education in REI may not match the amount of money you have to invest, if that makes sense. I'd do alot more research, reading, number crunching, etc so when you go invest that money you know exactly what you're doing and why you're doing it. It's too easy to make costly mistakes in real estate; most of us have made them and the only person that is ultimately going to care about your money in all of this is you. Again, this is just meant to help you not make the biggest financial mistake of your life.

no criticism taken, appreciate the candid response. I am doing exactly that (the research and number crunching, having other people look at my analysis) and plan on continuing to do so until I feel confident in my investment decisions.

0 Votes

Los Angeles County, California

Quote from @Samuel Eddinger:

@Bryan Ester - I think it depends on the market (area and financial) and your goals. With interest rates rising like crazy, it is hard to have consistent positive cash flow right now. If you buy at a 6 CAP and interest rates are 7%, even if you underwrote perfectly (no new investor does), you are losing money every month. That's also why the market matters. I would guess in Los Angeles, that the price of property is more based on speculation that there will be appreciation and less on CAP rates and cash on cash returns. In Connecticut, we generally buy on cash flow.

If I truly believed in Los Angeles as a market, I would probably buy in cash and wait for the interest rates to reduce to cash out with the caveat that I would still want to cash flow every month when cashing out.

With me living in CT, I am still buying with financing when the numbers work so that I can cash flow every month.

So because the interest rates are high (7) you should not invest in areas with CAP rates lower than 6%? How did people ever invest in properties when interest rates were well over 8% historically?

0 Votes

Los Angeles County, California

this thread is so awesome haha.

Is there another section where I could post some of my analysis for potential investments and get input from people? I have been looking at Columbus now and think I am seeing like 7% cap rates, but want to see what people think and if they could pick apart my thoughts on why or why not it would be a good investment..

0 Votes

Los Angeles County, California

this is all very helpful, i guess i need to expand my searches outside of CA. I live in Santa Barbara which is a pretty high market, and finding cash flow positive rentals without putting down at least 600k is difficult.

I will start looking outside of CA. Does anyone have advice on using property management companies outside of the state you live in? I heard that they can sometimes take advantage of you since you are out of state. I can ask this in another thread too that might be better for this.

New to this platform and super excited about all the engagement.

1 Vote

Los Angeles County, California

Quote from @Ruchit Patel:

The fastest way to increase your networth would be to use leverage, and keep 10% or 20% cash for emergency incase a tenant leaves or the economy collapse.

$1M in the midwest can generate up to $10,000 cash flow a month!!

Hi Ruchit, which midwest area are you talking about? Would you mind pointing me there? Is this multi family or? Where I live in California it seems difficult to get a monthly cash flow that high with 1M..

0 Votes

Los Angeles County, California

Quote from @Conner Olsen:

Quote from @Bryan Ester:

Lets say you 1 million dollars. When does it make sense to take that million and buy lets say 2-3 different properties (by taking out loans and having a mortgage) and create rentals which then cover your mortgage but are not cash flow positive (or maybe they are slightly negative)?

Versus just buying a place cash and immediately becoming largely cash flow positive?

I imagine it depends on what your goals are, if you want to be cash flow positive now and retire, vs wait 30 years for all 2-3 properties to be paid off and then you have 4 properties that are paid off?

You’re right, depends on your goals. If you want the cash flow now then buy cash. If you want the leverage and willing to defer gratification then buy multiple.

thanks everyone, i am thinking there might be a happy medium to this, where i can be cash flow positive why also having other investments pay for themselves...

0 Votes

Los Angeles County, California

Versus just buying a place cash and immediately becoming largely cash flow positive?

4 Votes

Los Angeles County, California

All Forum Posts by: Bryan Ester

Bryan Ester has started 1 posts and replied 7 times.

Post: buy one rental property cash or multiple properties with mortgage

Post: buy one rental property cash or multiple properties with mortgage

Post: buy one rental property cash or multiple properties with mortgage

Post: buy one rental property cash or multiple properties with mortgage

Post: buy one rental property cash or multiple properties with mortgage

Post: buy one rental property cash or multiple properties with mortgage

Post: buy one rental property cash or multiple properties with mortgage