All Forum Posts by: Stone Jin

@Shay Singh 

Be careful about leveraging especially if you believe the market is going to decline in the next 5 years.  With the 400K cashout you are already leveraged and if you leverage against that you will be 100% leveraged which will make you vulnerable in a down market.  

Also as a newbie, I would stay clear of C and D class property.  It takes a certain type of investor to handle those type of deals.

Buying a note that gives you 10% is fine if you understand the equity position and which position you are in.  There are plenty of crowdsourcing sites that offer 8-11% returns on 1st position notes where there is at least 25% equity in the deal.  

Owning B+ properties outright in certain markets will likely be the safest play but those deals are hard to find where you can make 12% cash on cash.  You can look at small multifamily like an 8 plex or 3-4 sfh.  Good luck

AZ and IN are two of the most landlord friendly states.  In AZ you can evict and have your property back in just about 3 weeks from the day you send notice.  I believe IN is similar from what I hear from my IN investor friends.

I'm not sure I'm answering your question correctly, but when we jumped in 2009, condos were going for 25% of what they sold for in 2007.  My wife and I had good income and healthy savings and after doing the math we figured there was no way to lose in that climate.  So we were positioned well to take advantage of the housing crisis.

I think things are totally different in today's market.  Many of the markets will not yield cashflow without large down payments.  If you have the right deal and have the funds to buy and support it, then you are positioned.  If you do not have the funds or the ability to get funds then you are NOT well positioned.  The amount of funds needed obviously varies market to market.

You can sell it whenever you want, I don't think there is any law that says you can't unless you got some type of down payment assistance that locks into some term.  

Why don't you just rent it out or do a cashout refi or get a heloc?  What did you want to do with the gains?

As for strategies, you can eliminate flipping, wholesaling, development as they are jobs and not cashflow vehicles.

48K a year in cashflow on 400K investment, so that's a 12% cash on cash return.  I'm sure there are many markets in the midwest you can just buy 5 80K houses that each cashflow $800 per month.   

As for the rest of the strategies, it all depends on what you are comfortable doing.  Student rentals and airbnb have higher returns but usually have more turnover and work involved.  Notes and traditional buy and hold have less turnover and work.  

Since this is all hypothetical- not sure what you are looking for.

I was having a chat with my wife about potential markets for investing and we got onto an interesting topic.  Would you invest out of your local market for the same returns as your local market?  We are in the Phoenix market and the returns on buy and hold are not super great at the moment, however the question is should we consider a market that will yield the same returns?  If so, what would be some reasons you would do it.

I invest in multiple markets.  My take is to pick 2-3 markets and stick with those and get some momentum.  I wouldn't have 10 houses in 10 markets.  That'd be a nightmare.  It takes a lot of effort to find the right team, so when you do you want to leverage those processes.

@Kyle Hassig we did everything with just our capital. I should have reached out to friends and family to see if they wanted to pool together or if they wanted to buy and I could help by procure or management. Also now that I’m investing out of state. I should have done that a lot sooner too

How much would it be to find permanent renters instead of dealing with airbnb.  If the difference is marginal would that be a better route?   Airbnb is a job and should be treated as such whereas roommates should be less hassle. 

@Sarah Young There are tons of people who just talk in a certain way and do not realize they are offending others.  She sounds like a solid tenant, if she just wants repairs on her schedule just have her schedule it with your contractor/handyman.  I have my handyman/ac guy, garage guy, tree guy, whatever guy just contact the tenant directly to schedule.  I get a bill at the end of it and life goes on.