All Forum Posts by: Derek Janssen

With a loan from your 401k, you pay yourself back interest, so no harm, no foul there.  Getting rid of a $225 insurance bill is a no brainer.  And who knows, if the market tanks next year and you're earning 3% on your money, it may be viewed as genius diversification.  I've always felt that if someone is paying a mortgage for me, they are contributing to my retirement - my virtual "401k".  

Get rid of that PMI is my advice. Keep the house - it's working for you.

I use a 2005 version of that Software called Quicken Rental Property Manager prior to them bundling with QuickBooks.  I self manage my properties and put in each and every expense manually.  I spend 4-6 hours per week on my remote properties.  My accountant has no issues with the reports from QRPM.  I have trusted suppliers I work with and pay them immediately.  I enter each expense as a line item under each property.  My realtor helps with "boots on the ground" things, but I field most of the calls and hence know first about almost all expenses.  Invoices are emailed or texted and filed under each property on my PC.  (one thing I wish my older version of software had).  I may go back to a spreadsheet (Google Doc) when it's time for a new PC and the software cannot be installed.  I do not want all the overhead of Quickbooks.  I want something clean and simple and I'm not a fan of paying $150 for this functionality.

Protect your credit score as best as possible.  A high credit score will allow you to borrow down the road.  If you have credit cards, pay them off every month.  Figure out ways to establish credit and pay off borrowed money quickly and regularly.  I don't recommend going out and buying a new car.  Save money for a downpayment.  PB&Js and Top Ramen for however long it takes.  Set realistic goals - Being debt free, saving a downpayment of $10k in 2 years, getting 1 new customer per month, etc.  Have lunch with mentors and people you can learn from, etc.  Good luck!

smartmoves.com  

Sends tenant email, they log in, enter all their info and it sends you a report.  Tenant pays $35 application fee.  

Credit score of 550-599 = 51% delinquency rate, 500-549 score = 71% delinquency rate (Ref: Landlording by Leigh Robinson).  There's always extenuating circumstances - divorce, short sales, etc.

It depends.  Living in CA, I invest in other markets.  $300k is 9-10 SFHs.  Experts say to diversify in 3-5 markets.  I would say 5 SFHs in one market and 5 in another.  Make sure they cashflow and take it from there.  

I'm not a fan of taking on partners unless the exit strategy is clear.  Any big investment takes awhile to turn the corner.  If you have a partner who suddenly is going thru a divorce and needs to exit before you've turned the corner, it can be bad.

 It's hard to be patient, but I was fortunate to have cash available 2008-2012 and was very happy with the outcome. That allowed me to refinance with cash out the last few years and expand my portfolio.  Multi family is a different beast than SFHs.

I've heard the sweet spot is >80 units so you can have full time staff - maintenance, on site manager, etc.  Otherwise I've heard it's death by 1000 paper cuts...

I start by stretching to get loose.  Then I email all my stuff to my CPA.  It kinda adds some protection also bc I claim that I'm a luddite and my tax guy did all the magic.

The mortgages are a good hedge against inflation.  Cash is king.  If I were in your shoes, I would keep the cash and wait for the next cycle in both real estate and the stock market.  I'm a fan of IVV - S&P500 ETF fund as far as funds go.

I prefer real estate bc I understand the dynamics at work better and have had way better success.

If the mortgages aren't bothering you, keep them.  

Do you want to grow your business?  Make it more turnkey?  Do you want to expand into short term or vacation rentals?  Condo in FL? (Hawaii for west coasters).  

If the bull market continues into August, it will be the longest bull market in history.

Real Estate has been going up the last 8 years.  The fed is indicating they will raise interest rates twice next year, causing loan interest rates to go up causing less sales in housing.  

Read this in "Landlording" by Leigh Robinson:  

 What do u recommend?