All Forum Posts by: Jeff Wallace

@Fabio Salas

My advice to @Tomer O. was to take his $100,000 cash and buy one single family house --- with no debt, its all cash flow after his expenses/vacancy etc, In our case, we can pay $110,000-$120,000 and get about $1400-$1500/mo for rent -- with his lifestyle, he can pile up a good amount of that monthly income for the next purchase, and once he has a few properties generating a few thousand buck a month, he can start showing the income to start qualifying for a refinance or mortgage to make additional purchases - 

@Fabio Salas

@Tomer O.

Yes, I was referring to $1,000/mo cash flow - But on an actual $100,000 investment - not a $100,000 purchase 

@Robert Campbell

That is funny - and in my experience Humor is one of the best things about the lifestyle real estate investing provides - for some reason, sitting behind a desk all day didn't spark my humorous creativity - unfortunately, I can't really post pictures of some of the "finds" i have left in conspicuous places for my contractors ---

Keep smiling and Happy Investing!

jeff

@Tomer O.

Congratulations on living FREE!! You are (almost) living the dream life of my younger self - Mine would have included some white water, skiing and SCUBA - but enough of that 

So lets talk REI -

If I were in your (rock climbing) shoes, here is what I would do - 

Use your 100k to pay cash for your first investment - you should easily be able to find a property to generate the $1,000 / mo with a $100,000 investment - Here in the houston area, we can get about $1,000 with just a bit more than $100,000 --- maybe $110,000 - $120,000  and that looks like a < 10year old home in a great neighborhood - but I'm sure you can get better returns with something less expensive in the midwest - 

Next I would just continue to enjoy your life and work occasionally while saving a bit of your income for the next purchase --- when you live below your means, it has a tendency to pile up pretty quick -- once you have a few thousand in passive income, you should be a more attractive applicant for financing to to accelerate your acquisition rate - The good news is that you are starting super young and it will be difficult to keep from acquiring a massive portfolio by the time you are at most people's "normal" retirement age-

The other option (and less desirable in my opinion - although probably easier in the beginning) is to find someone with a good job/income, but zero money to invest (this forum has them coming out of the woodwork) and partner with them on the purchase --- use part of your $100,000 for down payments on several and keep a bit in reserve for emergencies--

Whatever you do, you are way ahead of the masses- 

Enjoy the lifestyle and Happy Investing,

jeff

The landlord is irritated that, from his perspective, you decided to just go out an get a dog without seeking approval - Which is a very understandable position - He or she is having visions of a problem tenant that will be a pain in his rear for the next year - Your job now is to let the landlord know that you did in fact ask the realtor about getting a dog and that you believed a dog wouldn't be a problem - you are making a pretty big assumption that the realtor will not acknowledge the conversation --- if the landlord still refuses the dog after you have explained your side of things, then you either find another home for the pet or pay to get out of the lease .... I am a pet owner and animal lover myself, and I would hate to have to give up one of my pets as they are like family, but sometimes adults have to make adult decisions 

@Nate S.

locally we have a small cabinet builder who has started specializing in building only doors - He stays VERY busy - if you have a decent priced replacement door available (you will not be able to get these from Lowe's) I would pull the doors, pull the laminate from the cabinet boxes and replace the doors with a modern flat panel or shaker/mission style door ... then paint EVERYTHING cabinets/doors/ and even the current laminate countertop - we use a commercial grade paint vendor that paints a product that looks like stone and it is pretty durable - unless your tenant sets a hot pot on it

@Patrick W.

Hey Patrick,

I have a client who is also a Dentist - He is doing an amazing job of transitioning to "retired" primarily by living WELL below his means - at the age of 29, he has about three more years to work before he is free to do w-h-a-t-e-v-e-r he wants with his time ... good luck and happy investing.

jeff

@Stephen Au

Hey Stephen,

Congratulations on doing SOMETHING to set yourself up for financial independence - Honestly, at your age, it will be hard to make a bad LONGTERM decision wherever you decide to invest - In fact, just acquiring investment property at your age will pay HUGE returns over time - Time is the most important concept when investing - Time makes even moderate investment today seem like genius ten or fifteen years down the road - My advice -

Live below your means and invest every available penny in real estate as quickly as possible - Keep a nice pile of cash available for emergencies

@Brian Garrett

not a pissing match at all - I just think advice on the forum should be accurate - 

@Brian Garrett

agreed - 

and since your profile says you are preparing for your first deal... and my real estate investments have  allowed me to quit a $150,000/year career ....