All Forum Posts by: David Roe
David Roe has started 29 posts and replied 107 times.
Post: When is it safe to start "paying yourself" from cash flow?
- Flipper/Rehabber
- Dayton Ohio
- Posts 114
- Votes 71
Safe? Depends on so many factors... I like the idea of 6 months of opperating reserves if everything fails. But if the Real Estate Investing is a side hustle for you then keep rolling the cashflow back into your investing so it becomes compounded. Once you make 80% of your day job income thats a close time that you will break even if you decide to stop your day job and do investing only. or not work at all.
Your reserves could be built up for new BRRRRs or flips where you can pay yourself back, Worst case a AC unit goes out and you put it on a cc untill you sell or refi your new investment and pay yourself back. Key to it is to hold yourself accountable.
Another variance is if you save 5% on your property but also have 6 months reserves if you buy a place that needs a lot of work you can just do it all upfront and not have the need for the CAPX. Do a new roof, AC/Heat and such, repalce it all by buying a cheaper property and you'll know the CAPX money youre setting back wont be needed but instead could be leveraged into the 3rd down payment.
All of your money should be working for you, in some form or another.
Post: First Rental purchases help (Termites, Mold, ....)
- Flipper/Rehabber
- Dayton Ohio
- Posts 114
- Votes 71
Hello,
Having a great inspection done would be the first step, Then getting multiple quotes from rehabbers/contractors.
1) simple as inspection and a quote and add it to the rest of the rehab work to determine if theres value in the rehab or not. roof can be 2-4k for a 1000sqft house that only has 2 pitch
2) If its only in the basement the mold can be killed then sealed so it can nolonger grow, also find and fix the water issue aka seal the basement.
3) Termite treatment isnt that expensive, but you need to see how far into the house they got or are at... First floor, secondfloor, half way up the first floor? ect... If they are 4ft up the first floor wall you may have some reframing to do inside the walls.
4) Contractor qoutes again.
Estimates are free, just get some and find out what the cost will be. How big is the house? ranch 2 story?
Post: HELP! First flip gone wrong! Do I dump it or rent it??
- Flipper/Rehabber
- Dayton Ohio
- Posts 114
- Votes 71
Not enough information here, What do you have in it, whats the ARV, whats the rent comps. Why are you saying it was a bad deal?
Post: HELOC Rate & Amount Advice
- Flipper/Rehabber
- Dayton Ohio
- Posts 114
- Votes 71
Better to have it and not need it than to need it and not have it.
Post: New Investors Mid Ohio, looking to network
- Flipper/Rehabber
- Dayton Ohio
- Posts 114
- Votes 71
Each month there is a local meet up in Fairborn TJ Chumps where you can meet 50-60 locals all doing what we do. You can find the event in the forums. Network | Events | Ohio
Post: Short Term Rental Programs
- Flipper/Rehabber
- Dayton Ohio
- Posts 114
- Votes 71
Hey nick, i know this is an old post but i really like the Vacation Rental Success Pod Cast
Dave-
Post: HELOC Rate & Amount Advice
- Flipper/Rehabber
- Dayton Ohio
- Posts 114
- Votes 71
What are you doing with the money? Do you need the money? If you have another place to purchase and could use the additional funds then sure... it's more leverage. If it was me i would take advantage of all the funds you have at your disposal and use it for more flips or BRRRRs etc...
Post: Short stay/AirBNB Vacation Management Companies serving Ohio
- Flipper/Rehabber
- Dayton Ohio
- Posts 114
- Votes 71
As requested in title, are there any companies that manage Short stay properties in Ohio ????
Thank You in advance..
Post: New Investor Looking to Build Connections
- Flipper/Rehabber
- Dayton Ohio
- Posts 114
- Votes 71
Welcome, Dayton Ohio is a great location!
Post: Access to New Funding
- Flipper/Rehabber
- Dayton Ohio
- Posts 114
- Votes 71
I agree with you here but i started out and did 2 BRRRR houses at the same time, once you get rolling the more properties you have the less risk you have with your capital. 1 house=100%, 2 houses=50%, 10 Houses is 10% risk etc etc.... I would say after you have the first house rented on a 1 year contract i would hustle to get 3-5 properties done in the next 12 months.... then you're not at as much risk.
Originally posted by @Ross Denman:
We have several out of state clients that BRRRR in Indy. Understand that the biggest thing that I tell people about BRRRR is the need to have some kind of liquidity for operating reserves. The cash flow usually doesn't add up fast enough to cover the expense of your first vacancy... especially if it's an unexpected vacancy. Having a vacant home that needs work to get it "rent ready" while you have a monthly mortgage and not enough money to do anything because your capital is tied up in your next BRRRR... it will break your portfolio pretty quickly. It's easy to over leverage and see yourself in a cash flow negative situation, whatever you call an infinite rate of negative return. Be sure that you understand the ups and downs of owning rental properties. Having a good team is more important than the being in the best market. Indiana and Ohio are pretty hot right now and I've been hearing a lot about Detroit and Oklahoma City. I have clients in Kansas City, Pittsburgh, and Memphis as well, but I hear as much about those cities as I used to. There are a lot of good cities and opportunities in the Midwest Area. Find your team, I always recommend visiting your target cities, understand the turf and what works best in that market. I just passed along a $75k tenanted duplex to one of my investors today. I doesn't fit what you're looking for, but there are certainly ways to utilize the money in the midwest.