All Forum Posts by: Jane A.

Really it depends on what level of leverage you are comfortable with: It is not very reasonable to pay off 3.5% interest 30 years fix mortgage as your 150K could make you a better deal secured by Realestate. 1) if you lend this money to conservative RE investor or partner with investor - you could get 5-8% return on cash and your money will be secured by rental property (I do this for my relatives and friends) 2) you could buy SFR for cash and get in rent about 1000-1300. Your return on cash is also 6-8% plus appreciation 3) you could buy a duplex with gross rent about 1600, your return on cash is still about 8-12 % as you will have higher maintenance 4) you could leverage - for example take 150K as a mortgage and buy 4plex. Your gross rent will be around 3000 per month and you return on cash will be more than 12% or so. Or you could buy 2 SFH with 50% leverage, cash on cash may be around 10 % but appreciation may be better. 5) you could take 75% leverage - put 150k down and take 450K from the bank - buy two 4 plexes and enjoy 6K gross rent and more than 15% cash on cash This is average numbers for goor areas around my location. It looks like you may be more comfortable with conservative strategy so you could just take some leverage and start building SFR portfolio in your area. You will get better quality tenants and less headache.

Put a drywall over - it may be cleaner and faster

Plumber (company) may be charging around 300 for the main drain and doubled that for midnight hour :))) if this is long term contractor he would definitely be open to negotiate the bill, especially he did not inform you in advance, and this is wrong. From my long term contractor even for evening hours I would expect 100-200 bill for the main drain

Check with RENTOMETER.com Long term tenants expect to pay less than market rate At least 10% less You could make 100-150 raise if you will be below market 10% or so. And tell tenants that if you would consider new tenants the rent will be let's say 1800 but for them as a long term tenants it will be let's say 1600 I know some places raise the rent $100 every year for the same tenants because the market But I have the same problem as you at one of my places :))) first year I did a $30 raise and tenants were arguing, next year $50 and they said thank you :))) this year I suggested 70 and I plan to stay there but I have a few back up plans

Recently I bumped into seasoned investors (couple) who started their REI 30 year ago with SFR and built their 20+ portfolio on the side of their full time jobs. Now they are unloading it and look happy with their strategy. Along the way, when interest was very high, they had negative cash flow and supported their equity growth with their salaries. I guess at least first 10-15 years. I really was impressed how their strategy worked out even they did not start with such a great opportunities as we have right now.

1 (816) 372-4548 Jorney

I know some investors who do all cash rental purchases because they are able to and they could negotiate much better deals or because they are not able to get financing. I think they have less stress overall :))) My strategy: the first step to take as much deals as possible with leverage 2) to balance portfolio based on my experience holding properties 3) to pay off during 10-15 years to enjoy higher cash flow 10-15 more years 4) exchange re into re funds and enjoy really passive income :)))

Michael Win We need to wait for some stories about investors who lost their leveraged rental portfolios during the market crash. In 2009 I met some people in Fl who lost their portfolios, but they looked so bad that I did not ask about details. But recently I took a chance to ask one guy from Las Vegas who lost his rental portfolio as well in the last crash. He told that when market in Vegas dropped 2-3 times - cash investors started to buy and they dropped the rent. So rent dropped significantly enough for that this guy was not able to make even mirtgage payments

Keep your job though :))) banks like your w2 much more than rental income :)))

Outsource Maitenence (find GC or provider or just reliable handyman) and tenants recruitment agent , choose online program to property management and you will make it. Or you could just outsource everything to PM company if you will find reliable one.