All Forum Posts by: Joe Ferguson

2 SFR's = 2 roofs, 2 mortgages, 2 units in 2 different locations

1 Duplex = 1 roof, 1 mortgage, 2 units in 1 location

Not a big deal?.....Keep buying.

10 SFR's = 10 roofs, 10 mortgages, 10 units in 10 different locations

5 Duplexes = 5 roofs, 5 mortgages, 10 units in 5 different locations

If you are smart....

1 10-plex = 1 roof, 1 mortgage, 10 units in 1 location

I just called a guy today who had a sign in his yard. He lives far away and is tired of dealing with it. He encouraged me to look at public records which confirmed he is indeed selling at a loss. Everyone has their reasons.

@Dan Turkel That's what we are here for! It has to still cash flow 200 per door. Looks pretty good to me as long as there are no big surprises. 

Property Taxes? I would likely go a little more on capex also. Either way, if those are true rents it will still cash flow nicely.

I thought alot about this at first as well. I also have student loans and a car payment. I ultimately decided that taking the money I could use to pay off my car would be better spent on house hacking a 3 or 4 unit. Paying the car off saves me $400 per month. Worst case scenario on the multi I live for "free" which saves me my current rent of $700 per month. With 4 units I'm hoping to have a little positive cash flow to add to that. That same amount of money makes me twice as much, gives me a free place to live and gets me into the real estate game. The car can wait. One mans opinion of course. 

@Gerald Gray I clearly do not recommend doing anything you are not comfortable with. There is nothing wrong with starting with a 2-4 unit residential multifamily to get your feet wet. This will provide you with an incredible learning experience at an arguably lower risk factor (at least less money at stake). You already have the means to scale up when you are ready. 

@Carlene Rumph Welcome back to the area. 

@Phil Weiler Phil, that is a fantastic idea. How do we make this happen?

@Jonathan Vandal I have been thinking about joining TBREIA for some time. I would love to get some more feedback from you.

@Monti Harris You will regret not factoring 10% management a few years down the road when you are tired of managing and wish to turn it over to a property manager. 

Monthly cash flow $360 - PM not accounted for $278 = New cash flow $82 (Ouch!)

@Gerald Gray Do you wish to keep the two free and clear properties? If so, I would do exactly what James recommended. 

Personally,I would cash out and go all in on an apartment complex. 250K + 100K + 40K = 25% down on a 1.5M complex. Tell your relative they are about to have company.

@Max Briggs If you live in a property for 2 years you qualify for up to $250,000 capital gains tax exemption if single and $500,000 if married upon selling. You could buy a quad in which you live in one unit and rent the other 3 with a 2 year window to rehab, raise rents and create equity. You sell after year two paying no taxes and use that money to fund your next owner occupied quad while pocketing any extra. Just another way to avoid taxes.