All Forum Posts by: Jeffrey Holst

I think with 1-5 properties you should just bank it, but at some point say 10+ properties you set a number aside for emergencies and you can rely on cash flow for the rest, if you have 10 different properties the chance of them all needing a roof the same week is pretty small and so saving for all 10 roofs is overkill.  We have a base amount of cash (its a big amount) to reduce risk and then dont worry too much about continuing to set aside for cap ex,  if our base amount goes down we start setting money aside to build it back to our number.  We adjust our set point quarterly to make sure we arent taking too much risk and we redeploy as much as we can above that point.

I cant speak to your market but in general I agree with @Jeremy Brown that its probably a bad idea to sell and hold cash.  I dont think timing the market is ever really possible and on top of that you have nice cashflow.  I doubt that rents will decrease in many markets and your loans are fixed rates so might as well hold on see what the market does and sell only when you have an immediate need for cash or if you find a better deal you want to get into.  It would be fine to sell these at a high price and buy something else that gets a better return if possible but in absence of that I'd hold on

Sorry I couldn't make it. Maybe next time

In truth I didn't evaluate it that carefully. I should have but my investment is very small compared to my net worth and is from my risk pool.  For a clearer understanding of my thoughts on this money check out this article I wrote for dollar stretcher

https://www.stretcher.com/stories/16/16jun27d.cfm

This investment was from my luxury tax fund and I tend to throw that money around. For example I have some in cryptocurrency some in crowdfunded start ups on startengine and wefunder and I put another chunk with a wealthfront and Robinhood both of which are roboadvisors (if anyone wants a referral to either let me know and I'll hook you up.)

@Mia Edgar

Dont walk but instead run away,  if you have to do a bunch of work you need to make sure that property is being bought at a price where you get actual sweat equity, this deal it looks like you would just get sweat and no equity.  Obviously if you can buy it for much less then the numbers are different.  

One rule you can use is the 70% rule,  which says that you should only pay 70% of the after repair value minus costs,  In this case applying that rule means that you should pay  (70% of 140K) -80K = 18K Personally I think that you might be able justify a little more than that like an 80% rule but you are buying it at 100=% and thats a bad idea

The market slowed a little nationwide last month with rising rates but the numbers indicate that that was a bit of a blip and it appears to be picking back up already.  That being said we are likely late in the cycle and so the trick now is to buy cashflow that can survive a down turn in prices and not focus too much on appreciation.  Buy below market now and make sure you have a healthy cash flow margin and you should be ok imo

Welcome, from a little ways up I75.  I like your attitude,  if you keep it up you should do just fine. the trick is to learn but also to do.  I wish you the best

I dont like the concept of this question to be honest.  I feel like the trick is to know what you want to invest in and then learn enough about it to make sure that you minimize risk while increasing your return.  I do not think that investing in real estate makes sense unless you are willing to do this. That being said I wanted to remain truly passive and didnt want to learn a lot about it but just wanted real estate exposure to balance my portfolio I think the funds offerings from RealtyMogul and Fundraise make sense, they seem to be relatively balanced and set up to generate income regularly.  Disclosure I have a small amount in Realtymogul in their Mogul Reit 1 and it pays out slightly less than 8% annualized on a monthly basis, this isnt to say it will always perform but so far it has done that for me however it is highly illiquid and it probably will remain that way. 

I have not tried this but consider does it matter how much you make?  Why not buy the house youd like to live in with the land at a price point you can afford and then generate as much extra income as possible from the land. Not every house purchase needs to be a house hack and making a little extra on the land could just be a nice bonus for living where you want to live.  Just a thought.

@Alex Washburn best of luck on the move.  Hopefully when you get here you will find exactly what you are looking for.