All Forum Posts by: Dustin Beam

I can't/won't tell you what you should do, but I'm still trying to grow too. I recently purchased property that I believe I could 1031 or cash out refinance in a year or so. 

I'm leaning towards cash out refinance for this property because I really like them so far. My last property I did a 1031 to buy these and don't regret it a bit. 

But long story short, I mostly agree w/ @Thomas S. My need for expansion drives the need to leverage. Just don't leverage more than you're comfortable with. Which to me, means I'm still cash flowing ok after all expenses, cap-x, etc. 

Not yet, but I'm only approximately 2 years into investing. So I still work my previous day job. 

My goal is to be able to quit my day job 5-10 years from now. I'd like to be even earlier, but I haven't hit a watershed moment where I know I'll get there. I'm optimistic with where I'm at, but I'll still need to make a couple good/smart moves in between now and "retirement" from my day job. Those moves could set me back if I make a mistake, so nothing is guaranteed at this point. 

I'll always have to keep a pulse on my properties, so I don't know that anyone completely retires while owning rental property. 

My ideal situation would be that I make enough money to completely support my family completely while still traveling w/ them often. I would like to have a trustworthy employee that manages all my property to keep day to day headaches to a very minimum. My "job" would be reviewing that person's work and to continue to hunt down more property (if I even want any more at that point). If I'm bored with that lifestyle, I'll re-evaluate and cross that bridge if/when I get there. 

I think you could safely assume $100/mo for insurance. That's probably pretty conservative, but put you in the ball park. I have townhouses currently and I think I pay about $70/mo each. But if your deal can't cover an extra $30 or so bucks per month, run! :)

If financing is a risk, I'd talk to your banker first. If he/she is ok with it, then a good deal is a good deal regardless of when you find it.

I'll assume you would have adequate capital to purchase and reserves.

How are they trying to sell it? They might still be marketing it for back ups.

Most rewards come with risk, right? Its normal to be nervous when you acknowledge inherent  risk. For me, I'm more scared of waking up one day as an old man knowing I never tried to "make it". 

FWIW, even if this deal doesn't work out like you want, you probably won't lose big and you're young enough to rebound even if you do. But chances are, you'll far outpace your peers that are just showing up at their jobs each day hoping to get promoted. 

 LOL, I haven't done this with RE, but you sound like me when it comes to selling other items. For instance, I used to have a '66 Caprice. A guy walks up and asks me "what's the lowest you will sell it for"....my response was "what is the highest you will pay for it?".

I couldn't tell if the look on his face was one of confusion or one of realizing what  dumb thing to ask me (although that dumb question gets asked often).

I've never allowed pets before but considering a deposit and $100/mo pet rent. It's high but if they don't take it, oh well.

Personally, I'd look at what would be needed to make it "new" again. If the paint, flooring, etc are perfect then I wouldn't care about it being just one year older. Also do the new places come with appliances? What about lived in one?

I've always heard there can be tax savings to the seller if they finance the property to you. I'd ask them to talk to their CPA and get back to you