All Forum Posts by: Jacob Sampson

Congrats on the first purchase!  I would recommend going conventional if that is an option.

I like the advice and opinions of both @Sharon Tzib and @Mike Makkar.  I usually max out at 60 X monthly rent for a purchase price but I am fairly conservative and need more cash flow because I stick to 10-15 year notes.  With all that, you're not that far off my numbers and will probably do fine.  I echo Mike, not the best deal but not that bad either.

I think the correct answer to these questions depends on your goals.  Aside from goals, it comes down to a properties strongest characteristic.  In this case, I think equity is it's strongest characteristic so I would.

I prefer 15 year notes.  Equity is second only to cash.  When I first got started investing I did 30 because I wanted to maximize cash flow while I was learning.  With a bit of experience, now I cap out at 15.  Sometimes I go 10 or 12, even. 

When all your cash gets eaten up by a bad tenant or new roof or whatever you will sleep better knowing that, at least, your employees (tenants) are busy paying your property off at a fantastic rate.

You run the risk of forcing your self to sell stocks at the wrong time.  If you do the numbers, you will likely find the amount of potential money you could earn from the stock market is small enough that it probably isn't worth the risk.  Unless, like @Russell Brazil , you have a very large sum of money.  If your talking about something less than 30k then the risk isn't worth the reward. 

Why are you trying to raise rent in the middle of a lease?

If your in the middle of the lease then you probably can't/shouldn't.  Especially if it isn't discussed in the lease.

After the first year lease I always go month to month.  Have they been good tenants?  If so why not just go month to month to help them out.  Just require 30 or 60 days notice.

I'm not sure about California it seems to be a pretty tenant friendly state.  You might go month to month but up rent by $50 or some other reasonable amount. 

Sounds well thought out.  I like the idea of investing in what you know (the area you live in/near).  Is the cash flow that is consistant with the local market acceptable cash flow to you?

I don't think you did anything wrong.  Your thought process seems reasonable.  A seller's response to an offer has no connection to whether or not the offer was good or bad.  Don't allow seller's responses to have any emotional/personal impact on you.  Make your offers and move on down the road.