All Forum Posts by: Stone Jin

@Mark Kaiser Depends on your budget.  Take a look on zillow and figure out which parts are not war zones and have the best purchase price to rent ratios.   You can also tell where a lot of investors are buying by the number of listings within a few blocks.  

I try to buy properties that rent for a minimum of $1200, I know that puts in me in a good neighborhood and likely I will have enough left over after my fixed costs to make a profit.  I know a lot of others buy 20K houses and fix up and rent for 700-800 but that takes a special skill set and systems in place to make that viable.  @Andrew Fidler can help you navigate that storm if you wish to enter it.

I'm still optimistic on Toledo, it's not the same Toledo I grew up in circa 1990-2004.

@Ryan McCook I think your situation describes a lot of investors who bought 5-9 years ago in Phoenix.  We are sitting some significant equity and every month we look at the return on equity and it's like 3% 4%.  I'm just going through the review process with my wife on our portfolio performance for 2018 for our taxes, and I noticed that the cash on cash return is fairly awesome and the additional principal pay down is such a nice bonus.  Point 1 is just to sit back and enjoy the success.  Many on this thread are telling you to go larger, some much larger.  I find that to be more buying a job and headaches.  I self manage my portfolio in Phoenix with minimal touch points.  Generally only when people move out do I spend any significant time on it.  

With that said, I'm still in acquisition mode, just not in Phoenix.  We started buying in the midwest per the herd last year.  The returns are better than I can get locally even with the cost of PM.  I'm only buying in a market that I'm very familiar with, I'm not using turnkey providers, and I have boots on the ground.  So far it is working, I made 2 offers this week and the numbers look like 70K purchase price 5-8k rehab rents for 1100-1200, those numbers are winning all day long.

In terms of financing, you should look at get a business line of credit with your portfolio. That way you can have access to cash when you need it.

Best of luck

@Jack Edward Johnson it means without knowing the circumstances it doesn’t mean anything. It all depends on what your goals are and the risk profile of the property the region etc etc

The typical cost of a 1031 exchange for the buy and the sell transaction is between $800-$1200,  I'm not sure I understand your question.  Are you the buyer's agent? Are you selling the house to a buyer wanting to use 1031 exchange.  My opinion is that the fees shouldn't be considered as it is being used to defer capital gains.  It doesn't really have much to do with the purchase price.  Like if I was selling a house and a buyer offers came in below asking with some remark that the discount is to cover 1031 exchange expenses I'd tell them to go pound sand.

@Account Closed There is the 1% rule floating around BP where the monthly rent 1% of the purchase price.  I think in your example, you are just asking does the 1% rule work well?

It depends.  In markets where you have strong appreciation sub 1% rule will work, in no appreciation market in rougher neighbhorhoods you need 2%-3% to make it worth the risk.  

I use 30, with a 30 you always have the option to pay off early with no prepayment penalty.  The rate is slightly higher.  

@Ruben Rojas  How much are you looking to pull.  If it is substantial you can find many lenders that will do it, but if you have 30K properties, I'm not sure how many banks will find it worth it.   I found that Citizens bank in Toledo is fairly flexible, find a commercial bank and talk to them.  The other bank if Croghans, have a chat with them however my understanding is that they prefer to cash out larger $$$.

@Matt Dickens I would disagree about it being safer.  I think if you were to house hack a quality asset either renting out room long term or airbnb model, you would probably get the same cashflow and higher quality of tenants.  

The small MF out in the market place that will cashflow are going to be in tougher parts of town where you would get rougher tenants.  

I believe @Ben Leybovich wrote an article about house hacking in Chandler.  Maybe he can point you in the right direction.

If you are going to only use a room why not just buy a 5 bedroom house and rent out 4 rooms.  Might be a better route to go.

What's your budget?  Most of the multiplex in Chandler are in rougher parts of town.  Even those are going for sky high prices.