All Forum Posts by: Douglas Gratz

BORROW BORROW BORROW.  I learned not long ago and put simply, made perfect sense.  I asked someone on here about this exact question in regard to a 60K property

If I took out a mortgage and put down 20% =12,0000

After all expenses cash flow is 700/month or $8,400/year

It will take less than 2 years to pay myself back!

If i used cash id cashflow around $1000/month or 12k/year. It would take me 5 years to make my money back

I like 2 years better PLUS I get to use the 48k (since I financed the 60K) to go out and buy 4 more houses worth 60k! Unless you have millions of dollars or even 500k, youd be stopping your growth by paying cash. Slowing yourself down by exactly 5 years where as in 2 you could have 5 houses and have zero of your own money on the table. Whats the risk after two years, some terrible things happen and you cant pay the mortgage? You lose the house but lose 0 money. And if your smart and spread out your LLC per houses, a foreclosure wont even hurt you

@Joe Villeneuve 

So you believe getting a mortgage and putting down 15k is the better option because id break even in 3 years compared to 9?

(ps its not a shell, it just needs a new HVAC 900 soft house so shouldn't be to much and a small roof)

So in the future can you help explain how I should analyze my future purchases with a solid example and as to why you say my ROI% mens nothing

I would really love to create a model. My professor said she’d help if I could get the data. Definitely be a useful tool

Wow, great information. When I was looking up what it meant to absorb supply, @Todd Dexheimer I came across this from Investopedia , so thanks for leading me to it. To share...“

Influence in the Real Estate Market

For example, in market conditions with low absorption rates, a real estate agent may be forced to reduce a listing price to entice a sale. Alternatively, if recognizing the market has a high absorption rate, the agent can increase the price without potentially sacrificing demand for the home. The absorption rate is also important for buyers and sellers to follow as they make decisions on the timing of purchases and sales.

Additionally, the absorption rate can be a signal for developers to start building new homes. During market conditions with a high absorption rate, demand may be high enough to warrant the further development of properties. Meanwhile, periods with lower absorption rates indicate a cooling period for construction.”

I have been looking for some measures to use if I ever decided to build . Again thanks guys!

@Sammy Lyon May I ask what out of state markets you like. I to have gone from 0-9 units within a short period , refinancing after my first as well to pay for the rest. I would like to diversify out of where I am, just to have a little bit in a lot of good markets. 

Anyone’s input would be helpful of course :) of a good rest of the week!

Yeah that’s the facts of it and why I’m stuck 

I’m getting top dollar out here in norristown 1050 for a one bed

The custom parts are expensive and can’t go elsewhere but needs an escape 

He owns the whole easement and won’t agree to share it . The county approved new my plans but never went through zoning . Survey says I own up to my awall he has the hallway . But the code office gave me so much false info. Why would they approve if they didn’t ask zinging 

Hey all! Hope you are having a good weekend.

So I have a large expensive problem.  A fire escape. I have to build is encroaching on neighbors land.  Conty approved the structure so I had custom parts made that can't be returned $7,000 !!! What options do I have.  It needs to be where it is?