All Forum Posts by: Dennis Nikolaev

@Daniel Dietz well, it is, in fact, a turnkey. Right?

@John Cohen I never thought of mobile parks. How to learn the business model? I never lived in one, have no idea what it is. What is the thing that makes it most attractive?

@Will Barnard

@Ran L. thank you for the post. It is good to see that you also believe that it is time to focus on liquidity.

@Anthony Rosa, Minimum appreciation in Midwest, just cash flow. Well, If I can BRRR it then why not.

@Account Closed you say, get the cash ready and network, network, network in the chosen area. Makes sense

@Dan H., Yes, my cash flow is terrible. In fact, it was negative for many years. However, now it is an equity harvest! HELOC, as the short term solution! Whom do you use for HELOC on investment properties? What is the prop 13 protection?

It looks like a better strategy is to consolidate as much of the equity I have and get massive multifamily in a cashflow state. Perhaps not even use the cash buy, but to leverage it. This way I may get into 2 to 3 mill MF territory. Risky.

@Jay Hinrichs Midwest is only OK for  LOOOONG buy and hold. 
"buy MF that are solid B's go no lower..". Thanks for the tip on Carolinas. My mom lives in Richmond VA. that may help.

@Todd Powell my goal is 10k cash flow after taxes. that is my "retire at will" point. I am risk-tolerant as I make about 150k from employment in my mid-career and my living expenses for the family of 6 are like 4k per month. I am in for a long haul, so leverage it up sounds like the right turn. 

@Jason Graves Why not HELOC short term and still keep the SD properties. No need to sell?

@Roni E. I kept on buying in low market and that is what made me money. However, I was also buying in 2006 and that was a disaster. Now is 2006 once again. I'm figuring out what to do.  

@Account Closed Turn key is an option. Being in RE long enough, I may brave in without one. Turnkey will be my baseline and plan "B".

@Alina Trigub yes good education is the key. Doing it now.

@Alex Sabio Michael Swan. Seams like this is the winning ticket. why reinvent a bicycle? 

@Michael Ealy Cincinnati. Is it your local market, or you believe that this is the best market now (end of 2019)?

@Laura Scheel looks like the consensus is Midwest MF. Considering the trade war, what are the metros to grow?

@Nik Moushon No specific reason for Illinois. 

I was also hooked on Morris invest podcasts, he is an awesome anchor. I think he was mentioning that state.

@Matt R. Yes, I did attempt to be provocative with this post title. It looks like it worked. The post is alive.

2 evictions under 2 different Property Managers. With 1 it was actually an eviction, sheriffs and so on. a big pain. with another PM it was nearly painless. He didn't even have to do the cash for keys. He just explained the fall out from the eviction and the tenant moved. 

@Joe P.  ... BIG smile )))... Thank you for such a nice pat on my back )). I did try using my wits and it sort of worked. Only now I got more education and open my eyes to other options. I look at my past "deals" and see how many wrong turns I was taking.

@Michael Swan. WoW. it is an honor to see you in this thread. Let say I manage to assemble $800k worth of HELOCs. And the property is $2.4 mill. Is it possible to find financing for it? or 800k will be all I can count on for purchase and renovations?

@Devin Boyle it is like 3rd WOW in this thread. It is certainly a gold mine. I'll take your area list as a starting point for my own research.

@Caleb Brown Thanks for the hint on Kansas City. Reading a book on how to do a homwork on OOS team selection. Good call.

@Tanner Marsey Let say I can cash out on 800k. Sindication will bring like 4-6k per month. right?

@Tom Ott Thanks for the advice. Turnkey or on my own? I kinda feel adventures. Still in mid-career. Loose all now is just another option, not the end of the world. 

@Dylan H. Yeay!!! What markets do you like?

@Laura Abbott    Assisted living homes. I used to design those... I didn't know it is in the same category. Are you doing it, Please, share?

@John Cohen @George Skidis   Mobile Parks, I didn't read much on it. Sounds like it deserves some research. Do you operate one?

@Account Closed do you know if HELOC is OK as a downpayment on a large MF?

@Jeffrey Charfauros Guam? Love tropics (Living on Hainan island in China myself). What kind of economic drivers are there?

@Kerry Baird :) whooohooo! I learn something about the real estate today )))

Here is what I read:

Salomon W.: option 1 - invest at home now.

William Thorn : option 2: invest out of state now.

Brent Paul: option2: invest out of state multifamily. (I assume that buying in SD from William at the peak of the market is not what you suggest).

It looks like coastal areas are at a peak. My properties are already showing a flat line.
Right now,  I am listening to David Greene audiobook on long-distance investing. his point is to do homework to eliminate as much risk as possible. Besides, most of my SD properties are bought long distance anyway, since I moved to Asia. (bigger pay for my job, lower cost of living).
In my early years, I ended up underwater big time as my first 2 units were bought in 2006 and 2008. Midwest doesn't see swings like that.

It looks like it makes sense to take the peak equity now and put it to work out of state.

William, what state do you consider for new units? Why do you sell instead of HELOC?

Off-topic, How do you insert the "@ xxx" address here? 

Thank you for opening my post.

I was haphazardly dumping cash in San Diego rental properties since 2006.
I don't call it investing, because I had no idea what I was doing. Fortunately, I got in on the upswing of 2012 -2018 appreciation wave and now I have 6 units with $1.1 Mill in equity (1 being paid off and enough cash to pay off 1 more)

Here are a few directions I have in mind.

1. HELOC the paid-off unit for 300k and buy for cash another one on the outskirts of San Diego.

2. HELOC the paid-off unit for 300k and get several turn-key properties in Mid-West (Illinois possibly).

3. Focus on paying off untis with the smallest balance. HELOC them all and wait for the next swing in prices on the west coast.

Please, share your advice; what would you do with 1.1 mill equity NOW.

Dennis 

does it make a difference that one has a clear title when looking for a HELOC?

also, do you know if there is an advantage to HELOC on clear title prperty vs HELOC on a propert with existing loan?

I am considering to take a HELOC out of my free and clear rental.

I do have 6 units.

The first agent I spoke to said that I got to have 6 month reserves on ALL of my properties. That is like 40k just chilling in checking account!!!

I wander if this requirement is universal for HELOC?

I hear that the banks will ask you to show 6 month reserves for your other investment properties before they give you a HELOC.

IS IT TRUE?

For me it means assembling 40k cash, not an easy task