All Forum Posts by: Andrew S.

Corey,

a couple of thoughts upon taking a quick glance at your spreadsheet:

I don't see property taxes accounted for?  For the 2nd property, do you mean to say that the insurance is included in the mortgage payment (escrow)?

You don't have a CapEx or a property management expense line. You may be planning on self-managing and thus not count PM (though that means you are working "for free"), but CapEx is an important piece in my opinion: you probably have three sets of appliances, HVAC, water heaters, etc to deal with for each property. Are all of those brand new or will you have to replace several or all of those in the next few years? What is the condition of the roofs for these properties? You may need to set aside significant cash to plan for CapEx. If you allow for 10% CapEx and 10%PM you'll likely be cashflow negative on both properties.

I may be misunderstanding the question, but I assume you want to take a lump sum interest free cash advance on the credit card?  Why not just do that and pay the contractor with a check (paper or electronic)?

 Hi Daniel - welcome to BP and to Raleigh!

Check out TREIA (triangle real estate investor association) for networking and the "introduction to REI" class (4 evenings) at Wake Tech Community College. The class is taught by Amy Bonis, a local mortgage broker (and BP member) who has been in the market for many years. I think the class costs $77, so well worth the expense to get an intro not only to REI, but also to the local market, as well as a chance to network with like-minded folks. Next class starts May 25.

Do sort out your financing ahead of time - Raleigh is a very hot market right now, and cash rules for the best deals.  If you do need financing, at a minimum, you need to be pre-approved (not just pre-qualified).

 Reese - you are already talking to an investor friendly agent - Dawn would be a great choice!

@Dawn Brenengen

That's definitely stuff to consider. It's easy to forgot the non-normal things. I'm thinking we can live on about $2,000/month. Naturally, I'd like a bigger buffer through rentals and also plan to do some sort of work that I enjoy to keep me busy and earn extra money.

@Tim B., The poverty line for a family of 6 in 2015, according to the Federal Government, was around $32000.  So, your projection is about 25% below poverty level.  I'm not saying that's impossible to do (it would be for ME...), but that sounds REALY, REALLY rough!

 I haven't read @Brandon Turner book, but I will disagree with the premise you are refering to.  While you can't discriminate based on the disease, it doesn't mean you have to accept someone who has this disease and then violated the law because of it (DUI, for example).  Not all alcoholics end up DUI, having the disease and making the decision to drive drunk are two separate things in my mind.  Otherwise, you could also argue that you have to accept rapists or murderers, because very likely,  they have underlying psychological disorders that "made them do those things".

Hi,

I'm looking for recommendations for a driveway and parking space construction project in Raleigh.  Project will likely involve some grading work and tree removal.

Any input appreciated!

Results will vary depending on your specific goals, cash flow targets, risk tolerance, etc. , but for me, the HOA fees have pretty much killed cash-flow prospects for every single town home/condo I have ever analyzed in the Raleigh area. While you can certainly hope for/ bank on appreciation, those assets tend not to do very well in that area either (unless they happen to be in an exceptional location). That said, others seem to be able to make the numbers work (see @Dawn Brenengen 's post)