All Forum Posts by: Jeffrey Holst

@Ned Carey I am assuming and this is just a guess, that he is talking about the period of time it takes to recoup your investment in a particular piece of real estate. Ie how many months or years of NOI it takes to pay off the down payment

@Jordan Vanherwynen I dont think there is a rule of thumb that incorporates this. Unless you mean what my target pay back period is in which case I dont calculate it that way personally bu think you could. I typically look at cash on cash return, cash flow spread (difference between mortgage payment and NOI) and if those look good I look at long term prospects for the property and future projected resale value.

We typically are doing 20 year ams but for purpose of calculating cash on cash,  I use whatever amortization I am likely to get on that particular deal since cash on cash return is only meaningful in the context of what return I am actually getting. 

last year I committed myself to listening to the entirety of the BiggerPockets podcast,  most episodes are worth a listen but after a while it seemed a bit much.  Probably because i did 300+ in a single year so it was more than an hour every day for an entire year.  This year I am doing more audible books but I am really liking Lifebridge Capital's "The Real Estate Syndication Show with Whitney Sewell"  

(Shameless plug) I'd be remiss if I failed to mention our YouTube show the Old Fashioned Real Estate Show where we drink bourbon old fashioneds and talk about real estate.  I really like that one the best but mainly because I get to drink while filming it. 

Seriously though check out the Syndication show its quite good

My first investment was a condo,  It worked well and we still own it.  Ended up buying a second unit in the same building which we also still own. 

You can buy duplexes in Chattanooga in solid neighborhoods for 125-150K all the time, heck I have a few id probably sell at that price.  And I definitely mean you should buy and hold.  I personally wouldn't be scared of tying up my cash.  You should keep a reserve of 10K or so but unless you are 100% set to do flips which I think are much riskier than buy and hold then getting as much cash deployed at the highest return you can find as soon as possible should be the goal. IMO

@Adam Lowe flipping is getting harder in all markets this late in the cycle and given the ten years if price appreciation we have seen. It can be done but it's also a good way to not make money particularly if you are new.

My vote would be buy and hold. Perhaps a brrrr but definitely buy and hold something that cash flows well. With 40k you could put 20% down and a 100k to 150k property get solid locked in long term financing. The rest will make a nice safe reserve. If you keep saving and roll your returns into that fund you should have enough to do a second property fairly quickly.

The trick is real estate is to not lose money on your first deal and to get the ball rolling. Once you do it becomes easier. I'd probably target a duplex for my first deal.

@Stephanie Parrish we have a local meet up once a month. It's super laid back. We have about 30 or so bpers show up and we have a couple drinks. The location varies but it's always the fourth Thursday of the month. Search for Chattanooga Investor Happy Hour and you should be able to find it.

We also have a Facebook page that I could add you. The FB page helps us get the word out on the meet up each money. Let me know if you want an invite to that

We have a monthly happy hour in Chattanooga no pitches no speakers just a gathering over drinks and it's a pretty great way to get to know other investors

Brian makes solid points. I would definitely recommend staying in the 1-4 family range to ensure you can get owner financing type terms (longer amortization, lower rates, lower down payments).

Id also point out that we have a BP meet up the fourth Thursday of every month. It's basically a chance to get together with REIs locally and have a drink or a meal.  If  highly recommend attending. Next one is Thursday the 28th (next Thursday) at 5pm at State of Confusion.  Search Chattanooga Investor Happy Hour for more details if if you can't make this one but want to look out for the next.