All Forum Posts by: Chris Youssi

K fairly new to this website but been investing for over 30 years. We have 60 rentals at the moment  are growing our portfolio should have close to 80 by year end but . . . Never heard of the 1% rule . So . . . I purchase a property for 50k put 20k in it for a rehab now its worth 100K. Please apply this rule to my scenario above.

THX

Couple items.

1.) FHA approach is a solid solution allowing you to grow a portfolio right now with little money down.Issue is it must be owner occupied,however for how long I am uncertain. EZ to find out check with a lender. This way you grab another door fairly quickly and do not have to share in the profits with family - yourself n your brother can invest individually and earn 2 x what you would by investing with each other.

2.) Once you purchase if you feel it is needed than you can flip into LLC. Not sure you need one at this point with only 1 prop looking for your second.

3.) "Maybe I should do commercial" - I would stray away from this strategy as it is much more difficult to rent out a commercial prop than SFR - multi family. A non-starter IMHO with an inexperienced investor.

$120/ door fairly light imho - seek out at a minimum $200/ door. Others will disagree with me on this one for multi which is fine but I only invest in SFR where we avg (30 doors ) $304 / month plus all ours are no longer than 14 year amortizations with 8 on fully term 7 year amortizations.

TY for your service sir and best wishes to you and your family!

Bizarre - try Auto owners / company not an agency. Also try American family

Keep at it!

50K for a prop like that in Indy? Must be C/D neighborhoods. Curious about the nubers on a 50K prop in Indy - do tell!

I always try and get a 3br/2bth or create one if I can - not so much for higher rents which is a bonus but the real paly IMHO is resale

PM me of the details of both your objectives and counsel you are seeking. The more detailed the better

Chris

Jordan Moorhead I hear you I was like Huh? Cap rates 1% so what your saying is that a Walgreens at 5-6% depending on the term of the lease is worth less than a rental unit in MN? SF at 3-4% not a chance! SMH Clearly there are those on here who have no clue what defines a CAP rate!

I'm with Jay on the pivoting. I'm starting to hear - see little bumps in the market with first time buyers pulling back/ new starts slowing down just a tad nothing serious / rate increases. We have had a real nice run with rates and they are heading north no doubt about it. Couple things to remember Cash is king always will be and You can never lose money by taking a profit. I'm selling a few and putting the cash in reserves for future opportunities. I look at real estate like Apple / John Deere / Disney all commodities some ay nicer dividends some have a nice run coming. However if they have peaked and are only going to give you small increases for me < 5% ( not counting debt reduction from tenants or monthly cash flow ) I'm selling. Will I sell too soon  - sure but again you can never lose money by taking a profit!

Happy hunting!

I may be a bit different but our market the avg price point is around 130k. If I was to have 30 year amortizations we would be $400/ month all day on my SFR. Let me share the particulars:

30 SFR - avg appraised value 110k - avg LTV 65% - avg rent $1140 - avg monthly cash flow +304 -8 loans ( elite 8 ) are fully amortized over 7 years currently have 6 years 6 months remaining - Other 22 are 15 year amortizations with 11 doors / 13 years remaining and 11 with 14 remaining. All my props are B except maybe 2/3 C+. I purchase stressed props only, fix them up recapture all my money thru forced equity and repeat . I say this to tell you my avg maintenance / door is $47/ month - very low because we rehab them to the 9's. Been investing since I was 21 and am now 58. Started the SFR in 2015 - only way to go IMHO.

Sidebar - purchase the Book and wear it out "Richest man in Babylon" by George S. Clason written in 1921 . Far and away best business book I have ever read and i've read 100's. I read it every year to remind me of the fundamentals.

Happy Hunting!

Morning Darrius. Setup Rockford in keyword and it will give you a notification about anything involving Rockford which is how I came across some of your posts. We are having a networking meeting this Monday at 6pm Sams on Riverside. I would strongly advise you to attend. Nice friendly crowd from all walks of like very informative and helpful. Hope to meet you there! Here's ifo

•  06/04/18 06:00PM - 08:00PM America/Chicago SAM'S Ristorante, Pizzeria, & Banquet Hall , 6075 E Riverside Blvd Rockford, Illinois 61114

Chris