All Forum Posts by: Dan Goeckel

@Alessandra Verbena

It is hard to say, but from everything that I have read, economy based, Ukraine is a “breadbasket”, meaning they produce a number of different agricultural products that are used in everyday market items such as bread. They are a small country with a lot of output in this respect. So much so that people invested in this are see this as a hinderance stable price and increases are on the horizon. Secondly, they produce a number of bi-products similar to Russia that provide rare earth items. For example, Russia produces a very specific process that produces neon gas. Neon gas is used to produce chips used in cars, electronics, you name it. My guess is this is going to exacerbate supply line issues, trigger more inflation and cause the fed to increase rates and find ways to “tamp” down hot spots. Read about products produce at the raw material level in Ukraine. Ultimately, over time, it will affect tenants and their bills hence rent, rent rates, Property values…increase to all???. Gas and oil are an obvious issue associated with this conflict…inflation, temporary, months to ?? To what extent, who knows, hence for us we have built up funds to hopefully withstand these pressures over time and help others we rent to.

@Steve Vaughan

Thanks, forgot about seller financing primarily because we have never used it. Also like the idea of land contracts.

We have all of our properties on conventional 30 year loans. 3 of the 5 buildings are via a local Credit Union, because about 10 years ago we asked and they said sure. My argument at the time was we get a stable loan rate with conventional and you get 30 years of interest from good properties. This allowed better cash flow, improvements to the property and they lumped two buildings together on one loan. They got creative.

Thanks Steve!

My wife and I currently have (5) rental properties with a total of (16) doors. We have long (the last year) talked that our next step should be a larger building (8+ doors).We both have different view points as to how to accomplish this purchase.

One is sell a (4) unit building, 1031 the proceeds, then roll it into an (8+ door building).This would allow us to keep the appropriate level of necessary funds to support the other (4) buildings left and have some cash left over to support this (8)+ unit until we get our feet under us. There is a ton of equity.

Second option, and this is where we need some real world experience from people who have done this, not read about it or heard about it, but done it. Are there loans available or options, like assign address, live there a few days a week for a legal time length, to us personally, then refi, that would allow a 10 % or less down payment while still getting into a conventional loan or otherwise?

A little all over the map and I am sure that this pose questions. Please I welcome them.

@Theresa Harris they did. A three bedroom.

@Theresa Harris

Yes, we did constantly tell them we believed that was the law and because of the pandemic and lifting of the moratorium (we have a had a ton of turn over this year, but we are fortunate because the last three years we had all 16 units occupied by same people) they could not find a place that was suitable for their size. Both were divorced and working with exes to alleviate the overcrowding. Yes, we did put in our lease maximum of 14 days at one time and total for the year…a lot of things are slightly flexible right now. Thank you so much for the information!

@Justin Hoggatt Thank you for the post, unfortunately I can’t see that or read it.

Are there regulations at the Federal or state (Michigan) level restricting the number of rental occupants per bedroom and siblings per bedroom? After 11 years we just had a mixed family move out and in the last three months at any one time there could be a total of 7 people in a two bedroom. Never had that happen.

@Nathan Leger our first building was a four unit. We had just enough money for the down payment, borrowed some of it, no cash reserves, ran into broken pipes, tree roots in the sewer line, tore out cement ourselves to get to the pipes, had police called, us called, fights, drugs, sleepless nights all in the first year. We asked ourselves after 8 months, is this for us, should we sell? We chose not to sell. After reading a lot of posts on here we chose to ask those around us with experience in real estate, plumbing and electrical for help. We then stopped chasing renters and became more patient for the right renters because we realized we were not going to get rich over night. It is a long term game. This was 12 years ago and 4 buildings later and enough cash reserves to weather those types of issues. Let go of thinking you need to do it all and surround yourself with people that can help you do it and appreciate them to the ends of the earth. Your fear will turn into confidence with each mistake and you will become stronger and more capable each time. But don’t forget where it started. This is why it is a lifetime goal. Just do it!

Lewis, sorry to get back so late. You hit me when we had a daughter leaving to go to school and I was out of town for 2 out of the last 4 weeks. If you would like any input or guidance I can try to help you. Hope all is well. Please call me some time and we can chat…message me on this app.

Adam Martin, I appreciate the opinion. As always it is a frame of mind...we were in that frame of mind for a long time, now we are shifting. The other deals were so good that we stayed with a 15 and were still making 10-15% CoC (now much more) and cash flowing, and we also didn't know enough on our first few deals...years apart. Now we want to grow a little quicker. I still don't think the idea of a 15 yr is bad (buy and hold is our strategy, but could always change), if you are not paying for anything yourself and still getting double digit returns. That's why I say modified Dave Ramsey.