All Forum Posts by: Christina Linn

My advice is to try different investments and see what you're good at.  I am 100% accidental landlord and fought it tooth and nail, but it turns out that I am really good at it and I now do it full-time.  My husband should be able to quit his FT job as a software engineer at the end of this year and we will have successfully replaced his income with our investments.  We have only done rentals (and a laundromat, which isn't really real estate investing), but that's because I was lucky enough to find what I'm good at and what I like right out of the gate.  Good luck to you and your brother!!

@Yan Guo I do not believe there is anywhere that requires a licensed plumber to install a toilet.  Licenses are required for major work like installing new water lines.  None of the things you've listed require a licensed professional to the best of my knowledge. 
You may have said where you are and I missed it, but if you are in California I would double-check laws in your municipality.  I know that national laws, which most municipalities go by do not require a licensed plumber for any of the things you listed.

Also, privately backed loans don’t always limit what they’ll count for income. Some will count 100% of rents as income, minus necessary repairs (or sometimes not). That’s why I like relationship banking. I know what my banker wants and how he figures his numbers. The downfall is that private backed loans from banks are typically location specific - at least in my experience. For example, my bank won’t lend me money on anything outside the county.

@Peter Baudendistel I thought I said that. Yes, private loans don’t always have those limitations. My bank does not have those limitations, actually. Thanks for the clarification.

@Beau Fannon it doesn't scare me, it just doesn't help me reach my goals.  If I'm not cash flowing I am not buying the next property I want.

@Matt Wanner This depends a lot on the banks.  Some only allow 4 mortgages on anything 4 units or less, some allow up to 10.  Most banks take 75% of rent as income and your debt to income ratio can be 40% for most investment properties with most banks.  I would certainly not take the "who cares" approach, but to each their own, I guess.  If you want to make it far in real estate you should care about every single number that will affect your next deal.  If you don't understand the game you can't be very good at it!

All that being said, every bank differs.  I am a seasoned investor with 19 rentals and a laundromat and I put my last deal on credit cards, which temporarily dropped my score 100 points.  Because I understand the game I knew I would be able to refi and pull equity out, which I just did a few weeks ago.  Relationship banking is my best friend and I understand everything the bank looks at and needs so that I can keep my numbers where they need to be to get my next property.

My smallest property isn't much bigger than 1/2 that size!  If the numbers make sense and you can rent it, go for it!!

@Dwagne Haskins I would NEVER lie to one of my tenants!  That's a great way to create an exceptionally bad relationship.  I would discount all advice from whoever gave you that horrible advice.  In my experience, tenants respect me a lot more than the PM that handled their unit prior to me; they know it's my property and I care about it, so they care in turn.

I always send a letter prior to closing and ask the seller to, as well.  Once we've closed my first stop is every door in that unit to introduce myself in person and discuss any concerns.  This way, the tenant will be expecting changes - just showing up can be shocking and will likely put the tenant on the defensive, especially if they're older than you.  Good luck

I would NEVER invest in something that I couldn't put 20% down on and have positive cash flow. If you can't find it I suggest waiting until you can or investing elsewhere.  It does not make sense to have negative cash flow in an investment; that's counter productive.