All Forum Posts by: Jack B.

Or have you? 

A woman I recently dated also has a rental portfolio and retired in her 30's. She met a lady in California who told her as you get older you won't want to deal with the hassle of tenants and rentals or PM's, and you'll want to sell like I did. I agreed with her and so did the girl I was dating for a few months at that time. 

So that begs the question, do any of you have an exit plan? Opportunity zones? 1031 into DST? What?

Thing is, continuing to grow the portfolio is risky. Keeping what I have with all that equity in there currently is a lot less risky. What say ye?

Not that long ago my net worth hit 5 million. I don't own a hundreds and hundreds of properties, I just own more than a few but they are in an expensive market and I started buying well over a decade ago.

I could keep growing my portfolio or I can take the safer route and just keep what I have. I'm at the DSCR loan junction as I won't be able to grow without DSCR loans from here on out.

I first turned 1 into 2, that into 4, that into 8, you get the idea. I can keep doing that, I can turn that into 16, and 16 into 32. 

I would get into apartment complexes but only in cash as I don't like the risky loan terms of having to refinance every 5 years. Single family has been my bread and butter, why change a variable.

I've met a lot of people who retired with a handful of paid off or leveraged properties here in their mid thirties. (I'm early 40's). Two women I dated had  done that, and they were more concerned with enjoying life with what they had and not having to work than they were with growing their money. Mind you they drove luxury cars, etc. so it's not like they were wanting for anything...

While my initial goal might have been to retire early with this, I've kept cashing out and growing it, as I've started to enjoy the "game". But, managing what I have alone is fine. Managing 50 properties by myself would be a lot of hassle and I hate PM's. So it's a balance of hassle factor and wealth building. Where to find my balance?

I understand they have a little bit higher interest rate, but what are the risks of DSCR loans? Is there a demand clause where they can call the loans for no reason? My conventional loans don't have a demand clause. They can only call the loans due prematurity if I default.

I'm hesitant to give up my conventional loans on the next cash out refinance for DSCR loans. Thing is, I will need to go DSCR loans from here on out or just stop buying new real estate altogether.

I understand they have a little bit higher interest rate, but what are the risks of DSCR loans? Is there a demand clause where they can call the loans for no reason? My conventional loans don't have a demand clause. They can only call the loans due prematurity if I default.

I'm hesitant to give up my conventional loans on the next cash out refinance for DSCR loans. Thing is, I will need to go DSCR loans from here on out or just stop buying new real estate altogether.

 As does every system...not that traffic tickets are relevant in tenant screening anyways.

He can run the background check himself for $30 a tenant instead of paying a realtor more...just google tenant background search...I've used the same service for 14+ years

Bump

Funny you mention that, I have thought about that before, that was my strategy initially, leave one conventional loan open just in case. But, since I'm about to quit my W2 and won't qualify for conventional as a result, I'll have to go the portfolio or DSCR route anyways. I might as well max out my conventional loans.

That sounds like an interesting book, thank you, I'll check it out!!

 Why would it affect FICO? But yeah, won't mean much for me, I could buy these houses cash if I wanted to.

What do you mean grass is not greener, especially in the context of the Evergreen state? Are you saying the appreciation here is good?

 475-500K. I bought two similar if not worse houses for 475 and 550K during the pandemic. The fact that these houses are available in an area well south of Seattle at this price still is an opportunity IMO. I put 400K down on both, so 40%, and when the rates drop eventually, these two properties along with my other ones skyrocket again. 

Beats losing the 400K in the stock market...It also allows me to maximize my 10 conventional loans while I have W2 income. Even if I do NOTHING else in life, I'll be set with these 10 properties in an appreciation market...