All Forum Posts by: Brant Richardson

I'm in too.

Don't forget eating healthy, family time and actually doing some fun activities.
Watching TV and drinking alcohol are two of the biggest time sucks there are. 2 glasses of wine and your evening just stopped being productive. TV should only be on while you're exercising.
For me, making my early mornings and evenings productive is what makes it all possible. Having exercsie equipment at home or just running around the neighborhood helps too, 20 minute work out instead of 90 minute.

As Gerald K said, this may just be a hard person to reach, moving is a busy time. Stop texting and call them. Get a absolutely firm time that you will meet face to face with the agreed plan that you will receive the signed lease. If they fail to show up or refuse to sign then start eviction.

With those rates I would let those 7 ride. I'd leverage another 3 properties at least. If I wanted to own some outright for high cash flow I would buy more and pay in full rather than pay down those 4% loans. Once I had my passive income set up I'd buy a around the world plane ticket

Over leveraged in my opinion means not making enough cash flow. What exactly is enough cash flow is a matter of opinion and is affected by numbers in the individual property. You hear a lot of people say $100/door/month. When you have a little mortgage payment of $200/month on a little 750sqft house then you don't need a big cash flow to cover problems like missing a month of rent or needing some repairs. If you have a 2000sqft house with a $1500/mo mortgage then if you run into trouble $100/mo cash flow won't cover you very well, years of accumulation will be wiped out instantly.

www.homesteps.com
www.homepath.com

What is the value of your property? If it is a 100k property, with 70k of equity then a 80% refinance will give you 50k cash and will likely still cash flow. If it is a 200k property, then a 80% refinance will only give you 30k cash and will be less likely to cash flow.

Ok, we were using much different numbers from each other. I assumed you were using a 20% down payment and then refinancing when you got to 25% equity with a plan to buy another property needing a 20% down payment. I was also thinking along the lines of 25% equity in the current assessed value, not the original purchase price.
In your example, owing 53k on a 85k property, you are at 37% equity. If you were only at 25% equity you would owe 64k on the 85k property. If you refinanced for 68k you would only be pulling out 4k.
I am all for refinancing if you have a plan for using the capital to acquire more properties and increase cash flow. Refinancing "regardless" at 40% could lead to money sitting around not working or worse a new car or a trip to Hawaii.

Sounds about right in the acquisition phase. I might simplify it to one rule - Refinance if equity >30% and capital is needed.

On a 100k house with 25% equity, if you refinance to 20% equity you won't get much after the costs. On properties less than 100k you would want that percentage higher and more than 100k you could go lower. Why refinance above 40% if you don't have a use for the cash? Just enjoy the higher cash flow with more equity until you have a plan to put it to better use.

I would definitely take that job with your friends mother. Even if you don't make a dime it will look good on your resume, nobody needs to know why you were hired. While you are there take online classes to become an agent. You go at your own pace in those classes so there's no reason it has to take 6 months much less a year. Start building your credit history with a credit card but don't ever get into debt you can't pay in full at the end of each month. You look young and people will assume inexperienced so try to look professional and try to make yourself look good on paper with the license and credit history.