All Forum Posts by: John Morgan

@Dawson Burton

If you can live for free and cash flow $500/month then that’s a good deal if it’s leveraged with a loan. If it’s paid off, then not a good deal.

@Kelly Schroeder

I’ve bought 14 rentals from 5 cash out refis. I’m a fan of harvesting the equity to scale up. It’s a good way to buy houses with zero out of pocket if you don’t have the cash sitting around in savings to scale up. This has been my strategy to scale up and ramp up my cash flow. Do they cash flow much right away after I do the cash outs? No. Some only cash flow $100-$200/month. Annual rent increases make them do ok after about 2 or 3 years. But the new ones I get (for free basically) do well and my tenants are paying off all these mortgages. I’ve barely spent any of my own $ to buy rentals and have been able to scale up to 29 rentals by using equity, 401k loans, random consumer lines of credit from banks and 0% interest for a year credit card loans. I never really had much $ to invest in real estate, so I recycled equity to scale up and use OPM to buy more and more. Then pay off all the short term loans with the mailbox money.

@Jean Rhem

Run some numbers for fun on a better cash flowing property with today’s interest rate that you might be interested in. If the cash flow is the same or better and it has more upside for rent increases and appreciation over time, then dip out. I know it’s hard to give up that rate, but you need to be looking 5-10 years out with the potential of appreciation and rent increases.

@Nikelyia Waters

They’re scams. Waste of $. Real estate definitely isn’t rocket science. Go to local free real estate meetups and talk to people like us who have been doing this for years. Or ask anyone on here for free advice. Stay away from those guru courses.

They all sneak in extra people and pets. lol. I just look the other way. These people stay for many years and are paying off my mortgages while giving me good cash flow. An extra person or pet won’t put me over the edge.

@Dean Klein

I’d just pay it off if you don’t need the money to scale up or whatever.

@Natalie Brown

Welcome to finally jumping into the RE game. My only warning to you. It’s addicting. lol. Good luck!

@Cesar Coronado

I've got 11 SFR out of state and have no regrets. I self manage them and five are sec 8. The cash flow numbers are good on paper, but the appreciation will probably be weak. That's ok for me because the cash flow is good and I'm not investing in these areas for high appreciation. I've also got 18 SFR within 30 min of where I live in the Dallas area. Those have good appreciation but much weaker cash flow. So I'm a fan of both properties that have good cash flow but weaker appreciation and properties with low cash flow but good appreciation. That's why I stay diversified. And my cheap crack shacks out of state actually seem easier to self manage for some reason while my turnovers are low so far.

@Angel Arroyo

I started with only 25k ten years ago. Since then, I've scaled up to 29 SFR by using OPM. I paid my original 25k to myself back a while ago so it's all infinite cash flow from here on out. But I would recommend saving up at least 25k or figure out a way to get it. Good luck!

I've only got six SFR on sec 8 and they're all scamming the system I'm pretty sure. They sneak in their boyfriends who have jobs and basically get free housing and food stamps. Most drive nicer cars than me. There is so much waste, fraud and abuse with this program. I'm done with it. Especially if they have a two year limit freeloading off us tax payers. That will lead to frequent turnovers every couple years that will cost us a lot of $ with make readies, on an undesirable class of people nobody wants to rent to. This could get interesting if landlords like me bail on the program due to turnovers every couple years. The govt will have to step in and provide housing for these people, because a lot of us landlords will bail if we're doing turnovers for this tenant class every 24 months. No thanks.