All Forum Posts by: Jeff Zimmerman

@Avtandil G. your experience negotiating the 6 units is unfortunately common.  It's really important to pay attention to what the owners are excluding from expenses in their marketing.  In my experience, most of the time it's not intentionally deceptive, but the owners are so unorganized and/or they don't register that they should factor utilities into their costs.  It always amazes me but it's just how it is most of the time.   I advise all of my clients to get really good at estimating costs that are typical in our area so they can buy right. 

What's up @Daniel Buck , congrats on getting up and running,  Your first deal is always the hardest so i've found that having the mindset of just getting through the first one is the best way to put your fear aside and make it happen.  The fear will always exist but i've always reminded myself of what John Wooden (legendary UCLA basketball coach) said.  he defined success as doing your best, nothing less, nothing more.  So if you get started and the first one doesn't cash flow or even loses money, it's ok, as long as you did your best you can sell that property, take your new knowledge and start on the next one.  You will also find that RE is pretty forgiving when you make mistakes.  I lost money for two years trying to add value to a property and then when i went to sell it i ended up averaging 33% average annual return (imagine how good it would've been if i couldn've gotten it to cash flow).  Now things are going really well, but you just have to get through the first one.  So be smart, do you best and it will all work out as long as you don't quit.  

If you want to talk fresno market, message me anytime.  Good luck!  

Congrats on your first one  @Robert Arroyo  what part of the central valley is the property located?

what's up @Nick Wilson , congrats on getting started! Fresno might be a good market to look into. Cash flowing SFH's are a little tougher to come by as you will be bidding against buyers who are doing an emotional buy rather than an investment purchase, however it can be done in parts of town that are slightly lower income, especially if the home needs some TLC. If you'd like to chat more about Fresno just message me, happy to give you any info you need.

i'd be intrigued by the equity line on your benicia house, even if it breaks even for a year or so until you can raise the rent again.  that money you get out of that house is free money to buy your own home which is awesome and is why we buy real estate.  i think it's a good move....as long as it does break even and you dont' have to come out of your own pocket to fund that house.  if you sell the benica house you will most likely owe capital gains, but loans are tax free, you just want someone else to pay for them! 

Good question Andrew, i think it all depends on what you want to do in Dallas or what you want to buy next and how you want to work with your taxes.  I'm not a tax pro but if you sell your home in Brentwood as your principal residence you will most likely pay way fewer taxes than if you sold it next year as an investment property, which would enable you to hold onto the cash for a bit and make a smart decision as to what to buy next.  The other side of the coin is that your appreciation in your area is most likely going to continue to be very strong where you could likely make a nice return just on your appreciation after factoring in  -$300/month.   So i guess my opinion is that if you want to buy another investment property in the next 1-2 years, it may be wise to sell it now, if you dont' want to buy for another 3-5 or more, you may want to hold onto it for now.  But again, chat with your accoutant.  I hope that helps.  Good luck! 

@Dylan Bowman congrats on getting started!  Visalia is a great community.  Let me know if I can be of any help as your are getting started!

@Kevin Moules so glad to be a part of your story man!  thanks for the shout out!!!  Here's to the next one! 

@Annalisa Brown sounds great.  I have a number of managers i can connect you with.  feel free to message me if youd' like their contact info. my phone and email are also on my profile if that's easier. 

@Annalisa Brown  congrats on getting started and making a plan!  I wish i woud've started at 23.  As far as whether to wait or to get started now, I'm always a fan of starting earlier rather than later.  Based on your scenario of waiting 2 years to manage for yourself or to hire a management company until you can move down to the valley, you will still profit more by starting sooner.  In my mind, the worst case scenario, if you buy at least at a decent price, is that you break even on your cash flow by contracting to a good management company.  Even if that's all you do, you still gain your appreciation over 2 years and then get to start cash flowing once you take over.  Additionally, the longer you wait the more cash you will have to bring to the deal due to appreciation, therefore your AAR (average annual return) will be higher if you start sooner.  Does that make sense?  Feel free to message me with any clarifications.  Good luck!