All Forum Posts by: Jeff McCaskey

Talking about regular multi units (2-4) not complexes, smaller or relative rate changes won't impact prices in the plains states in good markets anyway.

@Sal DeJulio  Seeking the advice of a lawyer on the subject would be advisable. I was not aware that you needed any real qualifications/license to manage property. I manage my own. 

Do you have any property management experience??? 

I know we all have to start somewhere but honestly I don't think I would place any property under management with anyone who has no experience with management or who had no experienced party on board for training and start up in the beginning.

I'm sure you can accomplish your goals but you might have to re-tool or tool up in some form or fashion. Just be prepared for all that!

@Tee Allen I haven't used this strategy but in my experience, getting people on the phone or face to face tends to get results of some nature.

@Toyin Dawodu The book "be a real estate millionaire" by D e a n G r a z i o s i  

is a good book and lays it out there pretty well. Covers investing front to back and everything in-between. I think anyone could read this book and do well in real estate with some basic knowledge of how things work before reading it.

I would leave it too. Looks fine. Seems like a waste of money to touch it from the pictures.

@Jason Krawitz This is a bad sign going forward. I usually give people until the 5th to pay rent to cover situations like these.

If you don't wait and rent is due on the 1st only and late after that date - then they are late and it's not your job to plan ahead for them. They have on big boy/girl panties so they should figure it out since they rented the place.

This is your first property right? Don't go soft on this, if you were clear and it's outlined in the lease then call and figure out what's going on being nice about things but you should impose your late fee if they failed to pay. Being a Sunday isn't an excuse. - it was a failure on their part to think ahead. Which their brain activity or lack there of isn't your responsibility. Plain and simple.

Hope that helps.

@Mark Jovan Welcome to BP and good luck investing!

@Udaya P. Welcome to bigger pockets newbie sir!!!

Well 100 is a nice number to start with.

I think you were on the best track with the midwest comment and investing there, your money will go further for sure.

You might want to consider being a private lender if you want some very passive money.

I say this joking but also seriously, if you were interested in being a private lender you could loan it to me. I have been looking for private money and have some people who will be able to do something in the future but not at the moment. I could make you 10K in interest in the next 3 months. I know that's not quite the 10K per month you asked for but 3 months is quite a bit shorter than 5 years. And I could repeat that performance over and over and over again.

Part of my last statement is to demonstrate that I'm in the midwest and I could get those results for a private money lender doing my own deals and if you want to be a property owner you could do the same thing. Or you could act as a private lender and make great money without what amounts to a lot of extra work.

Either way, you have a hell of place to start from and that's pretty awesome Udaya!!

Let me know if I can help you out in any way

@Jason Prendergast 

I don't think this is a tough call at all really. I think @Andy Mink pretty much had this pegged out for you. You had mentioned the goal was passive income right, well flipping isn't really all that passive, at least not in my mind. Even if you aren't the one doing the labor it's still work to make it all come out right in the end and see it done right.

Renting is more passive in my mind than flipping, or at least it is supposed to be - it can be work too depending on the situations.

So you have a property that will be worth 109-110K. 80% is 88K and you have 75K invested. So do a refi as soon as you are allowed to under your purchase guidelines and get your 75K back for your next deal and take the additional 13K and add it to the rehab budget or down payment on another property or pay yourself a wage or whatever you want to do with it - that is your profit and you still own the house and (this is the important information in making this decision) rent it out ASSUMING that local rents are enough in the area for you to cover all expenses each month.

That seems like the perfect situation considering you want to grow passive income and avoid a huge tax bill and the fact that you are in the middle of this thing as we speak.

Lots of people are in envy of where you are right now in your investing Mr. P. Best of luck on all your deals!!!

@Ryan Cauzza 

Hey Ryan, I wish I had a more established set up so that I could offer you an option like some of the others that have posted, it would be great to be in that position for many reasons.

However I would offer you some thoughts to consider. Investing close to home would be nice for several reasons, some have been pointed out in the posts here, but the plains and mid west regions offer opportunities that are much cheaper than CA and these states can provide very good cash flow opportunities as well. There is that combined with the fact that property values out here don't change near what they do in places like CA which makes them relatively stable investments as well.

If learning more about this aspect of investing seems appealing to you and the family, feel free to email me or give me a call and I'd be happy to expand on this and give you some examples to consider at the same time.

I'm sorry to hear about selling part of the ranch that has been in the family so long, even if it's a good move. I have had my own small cattle operation here in Kansas and am liquidating now in 2015 - for the better for me - but I understand some of where you come from I'm sure.

Like I said, if you want to hear more about options for doing a 1031 into investments out this way just get in touch.

Glad you found BP! Best of luck!!