All Forum Posts by: Larry DII

Zach Kidd great response.. Thanks! It gives me a lot to think on.

Tons of great replies here. Thanks, everyone!

I am definitely trying to be cautious and to learn what I'm getting into before I make any moves. This thread has already helped to temper my expectations.

@Brent Coombsyou make a great point about cost and future value. My plan for whatever I do end up with is to hold for decades to come, use the cash flow for retirement once it's paid off, and probably pass it down to my kids once I kick the bucket. So please correct me if I'm missing anything, but wouldn't the most important factors be getting the lowest possible price today and the expected strength of the current/future rental market in the target area?  (That being said, I certainly wouldn't want to buy a property that I thought was going to go down in value.)

@Bram Spieroby "turn key" I meant that it won't need to be rehabbed. Basically that I could take it over for whatever price we'd agree on and not have to sink a bunch more into it right away. If that's not the correct terminology, pls let me know!

@Sarah Ziehrmy original plan was to buy a quad with cash but then I started thinking about using that cash as a down payment to leverage something bigger. Sounds like maybe I'm being greedy for my first deal. Perhaps I should start smaller with a duplex/quad and finance it to save room for more deals down the line.

Good points Brent Coombs .. When you look at it per door it does seem pretty steep. Having a lot of eggs in a big basket does kind of appeal to me as it seems like it would be a lot easier/cheaper to manage. Do you think the pros don't outweigh the cons?

Hello, I'm new here and new to REI in general. I've been starting out by looking at MLS properties near me to get a feel for things in my area. I've found a few properties which seem good to me on paper, but I would like to post one here and have some pros to chime in and let me know what they think.

http://www.trulia.com/property/3212374474-811-Covi...

This is a four building 32 unit property going for 1.2MM that I'm roughly guessing would bring in avg of $500/door.  It looks pretty turn-key.  Assuming there's no back taxes or major renovations needed, does this make sense on paper?

I'd like to finance something like this as a buy and hold and have the cash flow cover the payments and then some. I can put 20-30% down as needed, but I've heard that getting loans for properties within the city limits of Detroit can be difficult.  Does that apply even for turn-key commercial properties such as this one?  Am I better off looking in the 'burbs?

So please rip apart my train of thought here and let me know any huge pitfalls you might see in my path or anything else that I'm not considering.  Thanks!

Hello Bigger Pockets members! I've been hearing how awesome this community is for a few months now and finally decided to check it out. I've lurked here for a few days and I have to agree! In late December, at 35 years old I came into a very nice sized windfall in the form of company stock options. This turbulent time for the market so far in 2016 has wiped out half of my "expected" profits. I did pull enough out early on to pay off my own home, so I am currently debt free besides my 0% apr auto loan. My plan is to learn as much as possible here on BP and diversify a big chunk of what's left over into local real estate. I live in a suburb of Detroit which I gather can be tricky but is priced for cash flow if done right. I'm interested in starting off with a local 4+ door multi-family unit. I just don't want to make any huge missteps when getting started. I look forward to learning from the pros here on BP.