All Forum Posts by: Justin Tahilramani

Unless space was a consideration I would not put them in my rental units. I have one in my PR and my wife and I love it. I also have one installed on a Duplex that I built as a short term rental property. That tankless provides unlimited hot water to both units. Its also mounted outside the house, so it saves a lot of space not having to have individual 40 gallon tanks in each unit.

Also - I would only consider a tankless if you have NG or Propane. Forget about it if your home is all electric.

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Originally posted by @Sean Confrey:

Hello BP, I am learning so much from everyone and I hope I can contribute to newbies like myself once I have some experience to share.

I am currently a homeowner & have 100k equity built up with a remaining mortgage of $125k and 15-20k cash to invest with. I am looking into purchasing my first investment property - most likely SFH as I will be priced out of multi-family unless an incredible deal comes up.

Two options I am considering & would appreciate some input:

1. Cash out refi & buying a "lower level" property for cash, making minor improvements & renting out.

2. Cash out refi to finance down payment of "better" property (nicer house, better location, higher rent, etc..), make improvements as needed & obtaining 2nd mortgage on this investment property. **

**I shouldn't have an issue obtaining 2nd mortgage as I have excellent credit & decent debt-to-income ratio

Quality of tenants & appreciation is of utmost importance to me but cash flow is king right...

Any feedback or suggestions on what a pro would do is much appreciated!!

Raleigh, NC is still experiencing a strong sellers market but should have some opportunities pop up as a result of the pandemic.

Thank you!

Sean

Have you considered Fayetteville? Pretty easy to find solid homes that cash flow nicely.

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My market doesn't seem to be slowing down on the rental side. We are in a military town, so we are somewhat insulated from everything that is going on.

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Originally posted by @Chris Stroup:

Fayetteville, NC is starting to have some MLS properties drop in price. Also, many sellers are more willing to negotiate due to uncertainty. I am a Realtor and I work with investors and financing hasn't been much of an issue. I haven't had anyone back out of a deal yet. Fingers crossed.

I have had listing agents call me and try and accept low offers that they previously turned down.

Chris - let me know if you come across any killer deals. Still buying, but im being WAY more selective.

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Originally posted by @Bruce Martin:

@Justin Tahilramani I was considered going with the older brick ranch styles but decided against it. I would be curious to hear about the competition you've had when buying these homes? I was primarily bidding on foreclosure 3/2's built in the last twenty years and there seemed to be a lot of competition.

@Reggie Ramsey very nice! You had it looking good! And you're attorney wasn't wrong with her prediction. At least they didn't trash it on their way out.

Bruce - I buy 3/1.5 and 3/2 brick ranch homes for between $45k and $65k. Some need work, others don't, but they easily rent for $795 - $895. On a PSF basis they out perform newer two story homes with garages. They are also cheaper to turn when tenant move out and are easier to rent because affordable housing is something that isn't being built anymore.

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I stay away from two story homes. I would much rather have a 3/1.5 or 3/2 brick ranch. You can find them all day long for low to mid 60's in todays market.

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Welcome - as I am sure you know, Fayetteville is a great cash-flow market.

1 Vote

Originally posted by @Soh Tanaka:

I always used "Make Deposits" or "Create Invoices" to receive rent in QuickBooks, and it was all good. Now, for the reason I don't understand, when I create a report called "Transaction Detail by Account," (which is one of the standard reports,) the class, (which I use to distinguish different properties,) don't show up when I use "Make Deposits" or "Create Invoices." Which means I won't be able to make a report by class. I can solve this problem by using "Sales Receipt" to receive rent. Any red flag using sales receipt for rent? Thanks!

I have always created invoices to receive rents in QB Online. Are you separating your assets (homes) by class? If so, you should be able to run a simple P&L report and filer by class (property).

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@Jay Hinrichs - I completely agree with your example, but it's not the "norm" in a lot of CA. Both my parents homes in OC have appreciated nicely over that past 25 years, but not at the rate of $5000/month. There is also the fact that while one may enjoy hyper appreciation during a defined period of time - at some point it will climax. My parents places reached their peak years ago and have only slightly increased in value over the past 5 years (more or less stagnant). The OP makes it sound like you can bank on $5K appreciation per month. That's just not true in my opinion.

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Originally posted by @Andrey Y.:

Originally posted by @John Collins:

Originally posted by @Andrey Y.:

I am actually cash flowing AND profiting in Hawaii specifically because rental income growth goes hand in hand with appreciation. I would STILL profit even if my rentals were unoccupied. You cannot say the same thing.

The reason I can cover missed rent payments is because I focus on profitable markets, not to be confused with "cash flow" markets on paper.

What the hell are you talking about? You can cash flow without rental income? At what price point, what mortgage did you take out and how much interest are you paying on it? Simple math is all I ask for.

Very simple example. An investor owns a $800K home in a city in California. They earn $60K per year appreciation over the long term (which is $5K per month), which the Turnkey operators will tell you you should accept a $250 per month "cash flow", more than half of which will go to fixing up your boiler, or roof down the line, while the property value doesn't even keep up with inflation.

Do you think @Account Closed @Amit M. (investors who invest for PROFIT) are worried about their tenant not making the April and May mortgage payments? Because all of the people I see worried on all the threads popping up, are not invested in profitable markets. They are invested for "cash flow" because that is what they have been hearing and reading about for the last 10 years.

This is intended to teach, so we can all learn from something like this. At the end of the day, we are all trying to become better investors. Leave the advertising to those who are trying to sell you something.

This is total BS speculation. Homes in CA do not appreciate long term at the rate of $5,000/month. You are out of your mind if you think that is the normal rate of appreciation. You are the one that is going to get hammered when tenants cant afford to pay their high dollar rents. Also - you are WAY off base about cash flow rentals. Affordable housing is probably the #1 issue facing America today. There are 1000 Americans that are barely able to keep up and need affordable housing for every 1 American who can afford to live in a HCOL area. You can have your own opinion, but dont share it in public forums like its the gospel.

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All Forum Posts by: Justin Tahilramani

Justin Tahilramani has started 21 posts and replied 826 times.

Post: Tankless water heaters

Post: Which "Level" of Rental Property Makes Sense For Me?

Post: Is it a challenge to rent a home during this pandemic?

Post: Deals coming from covid-19?

Post: First Fayetteville NC Property

Post: First Fayetteville NC Property

Post: Real Estate Agent and Investor in Fayetteville, NC

Post: How to receive rent in QuickBooks

Post: How you can profit from a Big Mortgage

Post: How you can profit from a Big Mortgage