All Forum Posts by: Jacob Sampson

I don't think asking price = retail value.  So paying asking price does not mean you are a retail investor.  That being said, you said something that worries me.  You said you think properties will appreciate over the next several years.  This makes me think you are trying to convince yourself to pull the trigger on a marginal deal by tacking on some other possible benefits to make the deal appear better than it is.  Or to justify it to yourself.

For me appreciation doesn't factor into my equation at all.  The deal has the potential for acceptable, to me, long term cash flow or it's no deal.

You want to buy deals that if all goes well you make GOOD money.  If several things go wrong you make less cash flow than expected.  If there are some major issues you can exit break even.  Only a total catastrophe will cause you to lose money.  To have that sort of situation you need as many options leaning in your favor as possible.  Cash flow and equity are 2 of the most important.

Not all stocks are worth buying and not all areas are worth investing in. You may need to look at alternative ways of investing in RE or other investment opportunities. REI is not the only game in town. We RE investors like to think this is the end all be all of investment strategies but this is truly just one of many investment options.

No law or requirement.  Plus, as long as they aren't making any extra principle payments then the single amortization schedule can be used for the entire life of the loan.

Congrats!  Don't fix it up to the standard you would want for your own residence.  if this is a B or C class area and you are proud of your work, you may be spending too much.

I purchase all my properties or most of my properties off of the MLS.

Insurance is just a gamble.  You are betting against the insurance company.  Personally, I don't get the fair rent option.  In 11 years and 18 units I have had exactly 0 times that I would have needed that. 

@Sean Gallagher

Valid point.  I didn't intend for it to be an attack on you.  I was just expressing my own distaste based on a couple of my own past experiences.  I made some really good money off of my mom and to this day I regret it.  I made her aware of all the details and she knew exactly what was happening but I still don't like it.  I just gave her the money back

But as long as everyone is aware of the details I truly think it's OK.  It's just not for me.  And your point is well made, I'm not aware of all the details so I apologize and leave it at what I said earlier.  I think this deals greatest value is the equity so that's what I go after, through a sell.

I think @Aaron Impens will be able to help more than I can but I would say, in the beginning or maybe always, make sure your mistakes are small ones.  Meaning start small.  You don't want to find out a 100 unit apartment complex is not for you after you have already purchased it

Can't speak to your area but I absolutely love the idea of buying a duplex and living in 1 half as a first step into this game.  if I could go back in time, I would pick a wife who would be OK with that and I would do it!

I'm in.

Yeah, I don't get @Doug's numbers.  But that being said, based on how he calculates the numbers, I will unload all of my properties to you @Doug right now.