All Forum Posts by: Stone Jin

Maybe i'm misreading but when you rent out their house, the first 670 should go to them to cover the mortgage and then you split the profit?  You just keep doing this until you can buy them out at some price they are happy with.  

Post a 2 day notice to do an inspection and then go inspect and hand him any paperwork at that time if he is there.  Basically follow the landlord tenant act to the T.  You'll likely have to evict and make sure you let the mom know to stop sending payments.  Also it's NOT your problem to find him a new home.  

Just as your employer to defer your salary until next tax year.  I've seen that happen at large multi nationals so it never hurts to ask.

How will the owner come out ahead?  He'll lose 50-60 if he sells as is.  However if he puts in another 40 he'll lose less?

Are you saying pay off your consumer debt with the 25K or pay off the mortgage?  I think if you are talking about credit cards then you should pay off debt that is 18% interest before investing in a property where you may get 10% gains.  Also I agree with @Greg Scott that you need to stabilize what you have first before going bigger.  If you get crap tenants in a duplex as well you may be out 4 rents and a friend.

If you go into property management you will only learn property management, if you go work for a contractor you will learn about construction,  if you go work for  a wholesaler you will learn about marketing and sales, if you want to learn about underwriting or lending go work for a bank, etc etc.

It really depends on what aspect of real estate you want to focus on.  However I would think that the property management route is the most simple to learn and probably the least financially rewarding.  

I agree with the comments above that most of the suggestions are basically you trading your hours for dollars.  The passive streams all require capital (real estate, stocks, bonds, lending).   So if you are trying to money up then hustle and trade as many hours you can spare for dollars.  Once you have enough dollars you can start investing in the above mentioned asset classes.

You should have criteria that is more specific than $100 per door. If you put enough of a downpayment down you can get $100 per door. For example, our first criteria is with 25% down, can we get 10% cash on cash and at least $400 a month in cashflow. We are SFH investors.

The second thing is are you willing to invest out of state.  I'm guessing it is very hard to cashflow in CA, but more midwest investors are probably getting more than $100 per door.  However investing out of state comes with it's own risks.

I have contractors who take care of all these things.  Generally I'll do the procurement.  All my contractors I've used for years and years so I can just schedule them and they go and do the work and send me a bill.  Just find a system that works for you.  The last expensive turn I had (tenant left it a huge mess and smoked inside etc), I used a painter, a landscaper, a plumber, a cabinet counter refinisher, cleaners.  The whole process took about 11 days.  I think all I did was procurement of supplies and installed 1 dishwasher.  The rest they did.  Total cost of the turn was around 6000.

I would agree with @Anthony Wick, we tried facebook for the first time and had a ton of inquiries from a ton people that I would hesitate to rent to.  We use Zillow and craigslist only if zillow doesn't provide serious leads in the first couple of weeks.  I would think a sign out front is good too, really depends on the demographics.