All Forum Posts by: Joe M.
Joe M. has started 46 posts and replied 407 times.
Post: Selling townhouse to current tenant
- Erie, PA
- Posts 413
- Votes 348
What do you think the house will sell for? Sell to the tenant for that minus realtor feels.
If your numbers are right, 215 would be laughable
Post: 1 year away from investing, things to do in meantime??
- Erie, PA
- Posts 413
- Votes 348
I would find a realtor and have them set you up on the MLS with the criteria you want. No harm in that and lets you analyze some properties
Post: Is net worth a good indicator on how you are doing?
- Erie, PA
- Posts 413
- Votes 348
Thanks. I get it now. I never paid attention in math class
Post: Is net worth a good indicator on how you are doing?
- Erie, PA
- Posts 413
- Votes 348
Originally posted by @Greg Scott:
Net Worth can be a good measure of your long-term financial choices.
Based on your question about mortgages, I'm not sure you are clear on the calculation. If I have only $20,000 in cash, I have a net worth of $20,000. Now say I take that cash and put it as a down payment on a $100,000 home with an $80,000 mortgage. My assets are $100,000 and liabilities are $80,000 and I still have the same $20,000 net worth.
Now if you are smart, you are buying that $100,000 home for $90,000. Let's say you still put $20,000 down and a $70,000 mortgage. The home is worth $100,000 so your asset value is $100,000 and less your liabilities of $70,000 for a net worth of $30,000. You just increased your net worth by $10,000 by buying a house with a mortgage.
Thanks for the response.
Yep, not the same calculation haha
I put 20k down on a 100k house, now Im down 80k is how I was doing it since I still owe 80 and only have 20 into it
Post: Is net worth a good indicator on how you are doing?
- Erie, PA
- Posts 413
- Votes 348
Trying to figure out what measures to follow to see how I am doing through the years.
For those of you who take out mortgages, doesnt that set you back year after year?
I guess looking for a formula to measure and make sure Im headed in the right direction.
Post: Why are you or why aren't you investing in Flint?
- Erie, PA
- Posts 413
- Votes 348
I mean...are you investing there?
Post: Investment groups that help you find deals
- Erie, PA
- Posts 413
- Votes 348
Not sure about Erie having any turnkey companies. I live there and never heard of one, so they must not be great at marketing if there is one. I asked James Wise a while back over direct message and got some spam automated response. So not sure who he was referring to.
Post: For investors with <10 units, what are your systems?
- Erie, PA
- Posts 413
- Votes 348
Very helpful posts and thanks for the tip on Marquette tip @Dennis M.
Post: 1st month owning a SFR, tenant tells me today she pays the 3rd wk
- Erie, PA
- Posts 413
- Votes 348
Nothing more to add but join local landlord association. It costs me $80 a year and every type of lease, paperwork etc I could imagine.
Also...I would work with her based off what you are sharing.
Post: For investors with <10 units, what are your systems?
- Erie, PA
- Posts 413
- Votes 348
I currently have one rental, thinking about growing slowly. Im curious to see how others do it in terms of number of accounts, record keeping, ect. I figured there could be some good info, systems, and hacks for smaller landlords/investors.
Do you have one account for reserves, then individual accounts for each rental with just enough to pay mortgage? Or just individual accounts with reserves for each rental in them along with incoming rents?
How do you keep records? Important documents? Expenses?
Just curious to hear how others do it