All Forum Posts by: Jay Hinrichs

@Account Closed 

  well I guess that is another way to put it.... Can't argue with any of your points.

@Terry N. 

PCF = Positive Cash Flow ... Land lording in my mind is not passive ... it requires attention to be successful.. Investing in the stock market is passive.

There are levels of ease of ownership  IE I bet your higher end home in NC is relatively easy

If you buy lower end rentals you will need to engage more often as the tenant base is more fragile by and large.

But if you take 50 to 100k and you actually net that from your sales after tax.. You could provide equity for a fix and flipper.. then get the debt from a HML and make probably many times more in actual in your pocket cash flow than owning these two homes.

@Terry N. 

  what would you do with your equity..?  Now if your going to cash out to buy a business that would bring you in monthly income.. That could be good... Or use the cash to partner with a good fix and flipper and make far more money that drip rental income.  Or you don't really need the cash and let the tenant pay the home down  nothing wrong with that especially since it is probably a easy manage property at that price point ( talking NC)

In my mind if your going into the rental business with its drip income approach IE 100 to 200 a month PCF... one should have a goal to ramp up and get as many as possible ..

@Scott Trench 

  For me it was realizing that I could meet people all over the country in one spot.. and there are some seriously knowledgeable folks on this site. So for me if I had a question about something in Texas I simply contacted one of the top Texas brains and got the answer in a few minutes as opposed to hunting for it old school style.

Also being able to reverse engineer who I want to work with,  follow post and find potential equity partners by back trolling...

Along with coming up with a new concept for a web site that I think will be very helpful to many on BP...

@Daniel Burbol 

  There is no cash flow in California  ( at least that is what many say )  Just kidding.

I like Vegas personally.. and I think there is some nice opp's there..

@Richard Rountree 

  Lots of options out there... a few things you might want to establish are

Market 

return

risk reward

ease of getting there in case you need to take something over

And of course the all important aspect of after care.. The act of buying a Turn Key home is easy and painless.. You want to be set up for years 2 and beyond that is when a rental will start to show its colors.

Some may want to buy in an area they would like to vacation in.. Say Vegas, Phx, Florida etc.  Gives you a nice tax write off to visit your property then you can have some personal time. As well as you may want your tenant to pay off your home were you may end up retiring..

@Timothy Aughinbaugh 

  have not personally done anything with B2R  but have had clients .

reports are mixed.. underwriting is pretty ridged and of course your not going to buy a property for 50k then get an arv appraisal and they will lend you 100%.. they will look to back off of equity from actual cash in.. Now someone who has owned properties for years this would be different.

I know of one company that closed.. I know of many smaller players that never could get the deals done... because of equity requirements and or other terms

@Daigo Kurosaki 

  I believe that price point for a multi family  IE 40 to 70k  will  put you square in the middle of C or D class.. which will have greater risk compared to better neighborhoods.  You may want to check closely into this.. If your buying existing multi you should be able to get Actual numbers from past years performance this helps greatly determining the future.

@Jon S. 

one way you can probably get this information from the horse's mouth is to go to any one of the plethora of RE investing clubs in the greater LA basin and just network with other attendee's there will no doubt be many who have purchased out of state and would be able to give you feedback.. FIBI is one group that I have paneled on and there were definitely many TK buyers in the audience along with the other REIA's

Hopefully though you will get some good feedback to your post.

@Gaurav M. 

  Thank you we are working hard on the website... Its going to be awesome.

I agree with the thought that you invest were your most comfortable and familiar. Learning curve with RE ( IE buying in an area you do not REALLY know anything about)  Can be steep and costly for sure...