All Forum Posts by: Jon Reed

Hello!

David's article you reference is more like a fun case study that you would put together for school. It is 100% possible but the plan is very susceptible early on since there will be things that happen, mistakes made, and unforeseen huge repairs that should have been caught during the home inspection. For example, one of my early buy and hold properties had a ban main sewer line... I was early on in investing and didn't think about paying $200 for a plumber to scope a sewer line before closing. That repair cost $3,000 and ate up most of that year's cash flow. This learning curve makes a person a better REI.

I would suggest taking the information from the article as a proof on concept and not an actual road map. The idea is to always keep your investing momentum going (trading up properties, buying new properties, flipping, whatever it takes). For example, you can turn $20,000 into a million with BRRRR even faster than 7 years and never have to sell a property.

What I am getting at is don't get bogged down in how that formula in that one paper can get you to grow your REI profile. Take the nuggets from it, combine it with a few others, figure out what works in your area/for you and just keep the momentum going.

It is cheaper to pay a person to move out then try to hire a lawyer and fight the legal battle to get them evicted. 

I would say you may be a bit far in the weeds for Cap Ex... I have found that basing expenses as a % of property value is a better estimate than trying to find exact dollar figures. 

For myself, after our first property I tossed out all of my original figures and started fresh with real world figures. So, don't get stuck trying to make all of these perfect because you will constantly be updating them as you learn more and adapt them to fit your market.

Depends how you measure return/what you are looking for. Personally I believe multi-family properties in the midwest are extremely overpriced due to the quantity of coastal investors wanting to purchasing anything with multiple units.

All depends on what your lease states. Does your lease state that you do the lawn care and pest control? If so then it is on you.. if not then you don't have to. 

The first thing you need to invest in is yourself... read every real estate book you can get your hands on until they start to sound repetitive. 

Start buying up books and reading all you can. Once you know what to do and are confident (without having to ask strangers on a forum for their thoughts) then you will be ready to buy your first property. 

Buy the next one as soon as you are financially and mentally ready. There is no set 'rule' on when to buy another. Some people can buy a new property every few weeks while other only buy one every year or two. It all depends on you.

Well.. I am a buy and hold investor so I say hold it.

1st... shop around for different property managers. In our area some managers do charge 1 months rent to lease a unit plus 10% per month. However, you can negotiate a lower leasing cost (especially if the market is hot and you know it only takes them little effort to lease). 

2nd... I would get a HELOC on the property to pull that cash out to invest into another property. That way you can keep expanding your holdings without having to liquidate a property.

39 'retire' from W2 job.