All Forum Posts by: Chris LumLee

@Bhushan Shinkre Plus depending where in Detroit you'd be better off rolling tobacco with your cash and having a good time.

@Carlos Ptriawan That sounds like something I would do. Therefore, I think it's a good idea. But I am biased.

But in all seriousness, it'll come down to your risk tolerance and what you're most comfortable with when you look at the possible opportunity costs on both sides.

Good luck!

I've had properties held under my name personally and I just paid for better insurance. An LLC is a commonly recommended practice but another option- albeit one up for debate- is just to pay a little more for more insurance coverage.

I haven't purchased my investments through them. But I have bought turnkey before and I can say that you get what you pay for. While the price point is usually a sticking point, you also pay for peace of mind knowing that things are in new(er) condition. So it's up to you what you're comfortable with. 

I have invested in Memphis before and it was a great experience for me. Good luck and happy hunting! 

If it's causing you real angst, what I would do is look at economic indicators and census data to answer your internal questions about if you can without squeezing your tenants. Also looking at rental comps would be a good justification as well. When the time comes for rates to come down- assuming that you didn't get a good interest rate in the first place- then you can refi it with the new rates to alleviate your monthly expense (namely mortgage). 

 Depends where. Let's talk more!

I listed a property once and I had an offer that was 50% reduced and my agent sent it over to me to consider anyway and I said "nah". But it's testament that you should be able to submit an offer for whatever you want without judgment, but even more so with the facts you've stated. 

Any real estate skills you can pick up (through work in this case) will be helpful- but not required. When I first started investing I had a Budget Analyst job so that's all I knew. Then I spent a little while as a "Property Manager" that oversaw property managers. That's where I went to the school of hard knocks and learned some repair-related issues. If I didn't learn it there, I would have ended up learning about it through the property managers who oversaw my properties. 

If you're looking to learn before you invest, I would say that one way is to shadow rehab investors so you can at least learn about rehabbing and maybe light construction. This will help you see details that you won't think of that can eat through your investment profits. 

I'm in Hawaii and have invested out of state. It's unnerving at first but if you have a property manager you're comfortable with then it'll cool your nerves after awhile. I got out of investing for a little while but looking to do the same. Almost all of my other REI friends are also investing out of state and they're doing well.

Good luck!

You really aren't missing much. But actually in my experience, you want to put even more into reserves (CapEx and vacancy). And depending if you're holding the properties in an LLC or personally, you may want to pay a little extra for insurance. The only real option is a combination of putting more down, doing a BRRRR, and/or walking into a purchase with ample reserves already.

Good luck!