All Forum Posts by: John Gambone

Thanks for the information @Bill Gulley. I have tried to read as many of your posts on BP as possible as I can see you are someone who knows his stuff. I appreciate you taking the time to read my question and for the answer. 

I am a very conservative person who would rather have more in reserves to protect myself so I imagine I will set my investments up with a few extra months of PITI than what is required by the lender.

Thanks again for your advice. I greatly appreciate it!

Welcome to BP @Claude Booker! I'm also a new REI investor in the Greenville area. I sent you a connection invite. Let's get together soon!

Best of luck!

Hello Everyone!

I have a couple questions that I would like to get more experienced people's thought on about Cash Reserves on SFR and Multi-Family units. And more specifically when to cap your reserve account and put the monies into cash flow and making more deals.

I am currently looking into two different types of properties that are on the opposite sides of the spectrum from each other. One is a FSBO SFR I am looking to buy for $30K and the other is a 12 unit Multi-Family from an associate of mine.

The NOI calc I am using on both has the following:

Monthly Mortgage Payment

Taxes

Insurance

Management Fee (10%)

Maintenance Cap-Ex Escrow (3.5%)

Vacancy allowance (8.125 %)

Utilities (Water and Garbage paid on the MF)

After all my expenses my cash flow per month on the MF is $1,500 and the SFR is $220. I would love to get opinions on if/when I should put a cap on my reserves (Maintence and Vacancy) and put the cash used on them into cash flow and more deals to help scale my business.

Thanks in advance for reading and your thoughts! Happy Monday!

@Dan Earth  Shoot man... I live 3 hours away from Charleston and it's one of my favorite places on earth and I don't get their every other month! I'm jealous!

@Tim Watts I love your site! It is just fantastic! I am new to the REI world and I have been going back and forth with myself in regards to SEO sites like Investor Carrot and Lead Propeller, but I think your site sealed the deal for me.

Sorry to Hijack the thread. Great job Tim!

@Account Closed  I am starting to agree more and more with @James Wise and yourself on the LLC. I think I am going to go ahead with meeting with the Real Estate Attorney some folks at my REIA recommended, but I am not going to make getting the LLC done as something I 'must' do before I pull the trigger on a property.

As for financing, I have 4 appointments set up next week with smaller local/regional banks next week to discuss my new venture and to see what they can offer. I have a decent long term W2 job, equity in my home and solid credit so I am hoping I can find a great financial partner.

Thanks again for the welcome. I will circle back with you after I meet with some banks this week and run some things by you if that is OK!

Thanks for the welcome @Chris C. ! With all of the things you have going on, it sounds like you are underplaying your knowledge level! 

I am DEFINITELY interested in direct mail marketing. I have some funds available to me, but right now it seems pretty daunting. I'd love to hear your experience when you get a few deals under your belt. 

Thanks again for reading and saying hello!

@Jason Burr, since I currently have a W2 job, I am looking for the majority of my REI business to be buy-and-hold deals run with a property manager. However, my work is in the residential building products industry and it gives me access to a number of great contractors and general handy men, so I would like to try my hand at a few lower end flips as well. The flips will mostly be used to fund more acquisitions of buy-and-holds... All this being said with zero experience in the game and just my educated guess.

 Thanks for the advice Russ... I want to find a way to retire down in your neck of the woods! Maybe I can just start buying property down there in Charleston make the move! My wife and I love Charleston. It's our home away from home.

Thanks for the advice James! I have commited to putting in an offer on at least two properties in the next 30 days. Also... GO BROWNS/CAVS/INDIANS! I'm a Akron/Cleveland boy myself and just moved down to Greenville 3.5 years ago, but most of my family including my parents is still up in NE Ohio. Next time I'm in town we should hookup! Part of my REI journey is not only for me, but to help my parents manage their retirement funds.