All Forum Posts by: Eric James

I'm also in favor of using substantial leverage. A problem I expect to have in a couple years or so is reaching my DTI ratio limit for conventional borrowing

 At that point I will need to either pay down debt or find other acceptable means of financing.

Keep in mind that a loan you take out with your IRA will likely require a large downpayment, due to it being a non-recourse loan. Also, a custodian company told me that UBIT income for an IRA (as opposed to a Roth IRA) is essentially taxed twice: when you make the income, and then again later when you withdraw it from the IRA.

A follow up question on this topic: when one IS ready to start more aggressively paying down RE debt, could it be better to choose a single property to pay off, rather than spreading the additional payments across multiple properties? I'm thinking it would be advantageous to eliminate a mortgage payment, which would take longer if you spread the payments across more properties. What do you think?

Hello @Mason Thornley , welcome. It's great you have relatives with experience. They will probably be a great resource for you. Yes, I think one really has to think carefully and be smart to purchase in the Dallas area.

@Chris Toedter , similarly, when I moved to MA a realtor told me most multi family investors in this area get little cash flow and invest just for appreciation. There are areas like like that and you may be in one. Maybe focus on another city, learn it well, and use a property manager to run what you buy. There ARE areas where good cash flow is the norm. Or, think about moving yourself to one of those areas.

Are you looking for single family? I was just looking for a primary residence, and any house reasonably priced has 10 offers within a few days. It's definitely not a buyers market, though that could be good if you make it to the selling side of the equation.

Glad to have you. I'm just to move to a bit South of your from out of state.

What I would do is sell my primary residence and look for a place at least $100k cheaper. This might decrease my social status, but it would allow me to put away more every month to invest.

I do think there are many areas that are over saturated with would-be flippers. It seems to me there are more people responding to that change by getting into related businesses, like education for wanna be flippers and hard money lending. If there's an oversupply, make money off the oversupply rather than compete against it.

It depends on your definition, but I would not call Dallas a good cash flow area.