All Forum Posts by: Jacky Tu

@Brian Briscoe Hi Brian, what would you say is an adequate amount of reserves for a small multifamily(2-4 units)? I know it depends on the condition and age of the property, but maybe a safe average amount? 

@Andrey Y.

I thought the point of BP and having a community to help each other in real estate/investing is to prove that you don’t need to be RICH to invest? You just need to educate, work hard and know your numbers.

But anyways, I think calling off cash flow for appreciation isn’t completely wrong, but it’s definitely not right either. Basic investing rules are that appreciation should be a bonus in any RE investment because you’re putting your investment in the hands of the market.

I would like to say I’m a newbie and you and everyone here probably have a lot more experience/portfolio/everything else than I, but it doesn’t make sense because it seems like you are assuming “poor” investors are dumb investors and just because they don’t have a high W2 income or a big portfolio already, that it doesn’t mean they don’t know how to run their numbers. There are plenty of people just starting out who NEED their first investment properties to have profit, even if most of it goes to CapEX/Expenses. If they’re doing their numbers correctly, then I believe high CapEX isn’t called dumb, it’s called conservative. And it sets the building block for the “poor” investor’s portfolio who are just starting out to keep their properties above water during a recession or oh I don’t know, maybe a random virus from across the ocean?!?!

Cash flow is just math, and as long as you can do the math right and come out positive to keep building a strong portfolio relative to your market, then why would it ever be a bad thing? Feel free to correct me if I’m wrong, like I said I’m a newbie and I’m all ears.

My tenant paid on time but my mom’s tenant did say she’s not able to. We told her she could pay as much as possible for now and the remainder can be split into monthly payments for the duration of the lease. She was thankful for us offering solutions and stated she wanted to resign a lease.

@Jared Lomker

Hi Jared, assuming that you want to be the main manager of the syndication, I would say like everyone else to educate yourself first and then to start small such as a duplex. I also have goals to syndicate as a manager in the future but I know that the realistic thing to do is to start with small multifamilies first to develop credible experiences and educating myself as much as possible all at the same time. I just finished the Michael Blank course, and I’m no where near an expert or even credible because of it, but I’ve definitely learned that although you don’t need to be a genius to conduct a syndication, you do need to work your tail off and be knowledgeable.

A big part of syndicating is finding investors, and to put it simply, not many investors are going to give money to people who don’t have any experiences under their belt. Speaking from my current position, the you educate and hustle, the clearer the path will become. Hope this helps in any way...

@Justin Woodworth

I would if I had to make it work! It seems that may be my only option since I don’t have the down payment. My parents travel a lot and aren’t home 9 months out of the year so I’m living at their house for free(sweet gig). Since I don’t have the 20% it seems like owner occupy IS the only way to make it work. And even then it would be pretty tough. 

@Justin Woodworth 

Awesome! I want to buy a duplex this year but it seems like I may not be able to save enough for 20-25% downpayment. So I'm trying to see other ways to make this work. If it's not a bother, would you mind telling me about the deal? I'm really interested in how to make it work in this area...

-How you financed it?

-Is that cash flow per unit or total?

-How much of that cash flow you're putting aside for expenses?

@Cameron Lam this is awesome because right now, I am basically where you are when you started. Around the same income, with one property that I’m renting out for $500 cash flow. Awesome read on your financial journey because it gave me plenty of ideas of how I can map out my own path in the future. Currently learning how to syndicate, but this post reminds me that a nice portfolio of SFHs and a couple small multifamilies here and there can get the job done as well! Thanks for the share!

Tried to make it to this one but I got called into work :(. Will hope to attend a future meetup for the first time.

Hi all! Little late to the party (1 year later), but going through the same problem that @Jared Baker was going through. Analyzing duplexes in the Madison area and can only come to the conclusion that the market here is waaaay over priced. I'm using the Syndicated Deal Analyzer from Michael Blank and all the numbers are depressingly low....(COC is <5%, DSR is <1%). This was me analyzing with the intent of renting out both units. Won't get a duplex for less than $300k here and this is with some properties more than 70+ years old.