All Forum Posts by: Eric D.

 The OP stated "I have about $150,000 tied up in mutual funds that I'd like to put to better use".

That should be the comparison between what his turnkey RE investment might make and what he is getting now.

At some point, I will be selling mine and get to 100% retired on an even more passive income base.

Mine cash flow like a madman now.

How do you think the turn key provider got the property to sell to you at a profit?

Odds are, the turnkey provider found a 'deal', put a significant amount of money into it, and is selling it at a profit.  Find a turnkey BEFORE the other savvy investors find it.

Calculate your Mutual Find returns, and never go below that number.

 No.  The water was turned off, because there was no power.  A well needs power to run the pump.

The septic system typically does not over flow in the toilet.

If you use a self directed IRA, you are not supposed to do any work yourself. It all needs to be hired out, and paid for from the IRA. Otherwise, you are contributing more to the IRA than the law allows.

Use HELOC from your own residence. Or a Mortgage with 25% down. Or just save more money.

The way you break even is to wait until you find a deal that makes money, right away.

Not all properties are deals at the sellers price.  You want to make money for you, not the seller.

What is the potential to raise the rent?  My 4-plexes were considerably cheaper ($270K, and rents higher ($4,400).  

A new building, such as that one, should have lighter maintenance for a few years.

I have 24 rentals.  My expense ratio is 45.55% across all of them.  I am using actual for hard expenses, and 5% for vacancy, 10% for maintenance and 7% for property management.

I manage them myself, but a 'real' property manager will likely be 10%.  So, the 50% number is accurate.

And the expenses do NOT include a mortgage.

Here is how it happens...

The tenant rents a place with a well, not city water  A well pump needs electricity to run.  The tenant doesn't pay the electric bill, the well pump doesn't run, and no water.

I have seen this happen, although the tub was used as well.

And you should know how to screen tenants, and have an expectation as to what you allow on a background.  That is more important than any trade skills.

95% of tenant issues can be solved in the screening process.