All Forum Posts by: John Morgan

I've got 19 SFR where I've got a lot of equity built up but not a ton of cash flow. I'm ok with this because I bought 10 cash flowing houses in another state that have zero appreciation over time. But the cash flow helps pad any cap ex issues I've got with my other properties that don't have much cash flow.

I could probably afford to live off the mailbox money now after 10 years of investing in RE with SFR. My net profit is around 20k/month not counting cap ex, maintenance and vacancies. So say around 15k give or take after those random expenses. My wife retired due to the rental income 3 years ago and I could afford to retire now if I wanted to, but I enjoy my W2 which is sort of a part time job.

@Maninder Pal

6% with me.

@Austin Hunter

Go to local real estate meetups. They’re free and you’ll learn a ton from others who have been doing it. Don’t pay for your education. It’s all here for free. Just ask people and learn how they’re doing it. Good luck!

@Nicole Messina

What’s your question?

@Ryan Kinoshita

Mo tax write offs from your W2 if you make over 150k. But you will have paper losses for many yesrs that will carry forward year to year so you won’t be paying any taxes on your rental profits for years to come. So look at your investments as tax free mailbox $. I’m ok with that and haven’t ever paid any taxes off my profits from my 29 rentals.

@Heath Sizick

I own 29 SFR and have been self managing them all for 10 years. It's easy to do. And 18 are out of state. Don't over think it. When things break, they text me. Then I text someone to go fix the issue and give them my tenant's number to coordinate a good time to come. Takes me like 30 seconds. Done. All leases and most payments are done with apartments.com to DocuSign. It's free and easy to use.

@William Miller

I can totally relate. My friends, co-workers and family would say things like this to me all the time. Some still do and I'm making 20k/month profit off my rentals. Once they hear that, they'll say I wouldn't want to deal with all the headaches you go through self managing 29 SFR. It's actually pretty easy and I tell them it's not time consuming at all. I just text someone to go fix things then cash app them the $ when they're done. Takes like 30 seconds of my time when something breaks. I do all my leases and collect rent online with apartments.com. This isn't rocket science or some major time consuming side hustle.

I do self manage 10 out of state. I picked a random small town in Arkansas I never heard of and didn’t know anyone there. I bought these homes sight unseen with tenants in place. It’s worked out great. So don’t be scared of investing in a city you’ve never heard of out of state. It’s easy to do. You’ll find handymen and have boots on the ground there to help you before you know it. Good luck!

Quote from @Chris Peregoy:

@John Morgan thank you for this! Great insight! DSCR loans! Thank you! I'll be sure look into these, and thank you also for confirming that this is the way to go!
C+ class properties? Is that your designation or something the county assesses? Sec 8 seems appealing/possible here too

I aim for working class hoods which most homes look like rentals. You can tell that most are rentals because the yards don’t look great and homes aren’t in the best condition. But they’re great as rental. The price point is much cheaper and your ROI is much better than A and B class properties. And turnovers are much less since these people seem to be lifetime renters so that saves costs. And when recessions hit, these rentals are in biggest demand, not the more expensive class A and B rentals. I’ve got 5 with section 8 and those aren’t bad either. 

@Michael Goldberg

I’d take off about 10-15k for no garage. But you gain that back by the extra living space so it evens out. I’ve got 4 houses with converted garages and the appraisers count those bonus rooms/extra bedrooms as living space so my comps all came in high.