All Forum Posts by: Eric Schultz

@Evan Evans

What is the $500k costing you?

There are many options to gain passive income with much less work than you are looking into.

Nice job! Madtown is a great place to be!

Thomas Lee Nuckles If it is a 5+ unit property, you should probably consider using an LLC. Otherwise, no. The property mortgage, landlord insurance policy, renter’s insurance carried by all tenants, solid property management and an umbrella policy should be more than enough asset protection on a first rental. Bank financing becomes more difficult with an LLC, not to mention the added expenses that eat up your cashflow.

Kimberley Keller We did our last flip in 2017 and started focusing more on buy-n-hold rentals for cashflow. The music hasn’t stopped yet in most areas, but it may be best to diversify your REI approach sooner than later.

I’ve found Zillow to be more accurate on properties in the Midwest than on the West Coast.

James Marshall An appraiser with the right attitude should accept you pointing out the additional comps. They still get to decide what to include in their report. I’ve walked a property after rehab with the appraiser and pointed out all of the major improvements that were made. Some improvements can be less obvious like mechanicals, electrical and plumbing.

Wes Blackwell This is merely just “re-packaging” of a re-distribution plan from the upper class to the lower. The $12k / year is less meaningful (percentage-wise) to the upper class than it is to the lower class. The money has to come from somewhere... Socialism would further increase the lack of ambition in this country. Speak with someone who has escaped to the US from a socialistic country for true perspective. Most would conclude that this isn’t where we want to end up.

Taylor Morrow Indiana is known to have some sinkhole risk. In the event of an earthquake, these areas could experience liquefaction. The only time this may be a real issue is if the builder or developer was unaware of a sinkhole infill area at the time your property was constructed. With that said, I live in a higher risk area for earthquakes and don’t see much financial sense in the earthquake policies that are offered right now. The high deductible makes it impractical. You’d be better off taking a HELOC out on the property now so it is available as an emergency fund for risks like this. There are many lenders out there that will do a 70% LTV on a rental property HELOC.

By street names. Individual bank accounts nicknamed on each property to keep things consistent with bookkeeping.

Karl McGarvey With a $100k purchase price, 20% down, 5% rate (740+ FICO) on 30-year fixed conventional, you will be right around $25K cash-to-close in several Midwest or Southeast markets on a B / C class property. Finder fees, rehab costs and cash reserves being separate, of course. Here are some other options for investing the $50k into (2) separate investment deals: 1.) Invest in a syndication deal as a limited partner. There are proven general partner/sponsor/operators all around the country: A. If you are an accredited investor, you can participate in a SEC Reg D 506c offering as a limited partner. Some offerings have a minimum of $25K investment. B. If you are not accredited, you can participate as 1 of 35 non-accredited investors or “other purchasers” in SEC Reg D 506b offering as a limited partner. This option allows you to invest along side accredited investors. Some offerings have a minimum $25k investment. 2.) Invest $25k in AHP Servicing (Google it) for a 10% preferred return while you make bigger plans for the next $25k investment. Good luck!