All Forum Posts by: Wade Alderson

Buy a 3 bed 2 bath Apartment in Orlando, live in one unit and rent out the other two rooms on AirBNB, use the cash flow to level up to more apartments and expand my AirBNB business.  

Right now I am reading @Scott Trench's Excellent Book "Set For Life". His model is for folks earning $50,000 a year. I don't make that much so the living in an RV thing really makes sense if you are looking to cut living cost to the bone.  

BTW... I can not recommend the book "Set For Life" enough. 

@Wayne Yates I myself was thinking about doing this. I saw lots of videos on youtube about van dwellers who pay all expenses  with the cash flow from real estate. Funny thing... because the cost of living in an RV is so low they can save up the cash flow to invest in new properties all the faster

I am working on my 5 year plan. So far everything is in pencil and is pretty black and white. 

1st, learn to dive 18 wheeler truck and become long haul trucker

2nd live in truck most of the time to save up for investing in multi unit property (using FHA loan) cash flowing $200 per door

3rd drive truck most of the time and plow cash flow into property to pay down mortgage, do mortgage loan to buy more property 

4th drive truck until I have a cash flow of $10,000 per month

5th live in Florida as close to Walt Disney World as I can and start a vacation rental business

And then everything gets fuzzy. 

Right now I am thinking of taking a page out of Jason Heartman's book of life and just rent my place to live.

And that got me wondering. 

Understanding business as I do, I understand it can be done. But I wonder if any of you have ever lived in your own vacation rental rent free or did you pay the fee, and then just use it as a business write off, as you pocketed the profits?

I have like 5 to 7 years to figure this out (and business tax laws change) but as of right now I am scratching my head. 

I want to thank EVERYONE! EVERYONE! EVERYONE who posted on this thread. 

My take away is that I had an idea, that idea is risky, I have reassessed my idea.

I am still like 9 months away from financing my first real estate investment but now my goal is to save up like $15,000 to $20,000 for the down payment and another $6,000 to $10,000 for cost an closing and to take a few days off for recon the property, get them inspected  and ask around about what the best property managers are in an area and check them out. 

I might have put the cart before the horse by posting on this so far in advanced, but the way I see it is that the more you know about the problems you might run into the better it is to avoid those problems in the future. 

Again Thank You So Much Everyone and I look forward to doing business with those I can. 

You Guys Rock! 

@Scott Steffek you bring up an EXCELLENT point that I forgot to think about if I can get a $50K or lower turn key property with a 25% down payment that would be great, but it would not really count for much if the turn key company does like the pump and dump real estate investors who buy multi family paint and put new carpet, put just anyone in there and then say "newly renovated, fully occupied" and are out the door before the ink is dry on your check. 

Now I have another thing to worry about. 

I thought turn key meant "one and done" you pay, the property is yours (you did your due diligence and made sure the cash flow was not inflated, also have all your i's dotted and your t's crossed with eviction insurance and all that) and they manage the property for you.

Is that not correct, I mean I know there "BAD" turnkey real estate companies who take advantage of people but I would think that a simple google search would give you want you need to know (I really like Morris Investing, I researched the day lights out of them (that is how I found out the 100% cash buy in) the worse I have found is that they take a while to call you back and when they do call you need to be ready because if your not they go to the next on the list and it can take them a while to get back to you with the next deal. If I had bottomless pockets I would go that rout to grow to my goal of $8,000 a month in cash flow over the next 10 years. )

If I am understanding you correctly Scott what I should do is just buy from sellers like you from like the Bigger Pockets Marketplace and then just do the things I would do with real estate if I found it here... find property management, monitor property management... work *** off for next down payment on next deal... lather, rinse repeat until I have the cash flow I want.

Is that right? 

As someone who's bread and butter was Mobile Homes I can say that almost anyone who said "It can't be done" was wrong. As a matter of fact Mobile Homes are still a great little cash cow investment, the problem is that I have a goal to move to Florida and Mobiles Homes are a little bit more "hands on" (if you know what I mean) even when they are rent to own. Here where I am in Oklahoma you can get a mobile home on land for under $20,000 and then sell it rent to own with $1,000 down and $750 a month for 60 months. 

I know for a fact there are folks on BP who are KILLING it with Sub $40K homes because I have read post since 2011 with success stories by people who have done that Lisa Philips is one. So I kind of feel people who say it can't be done, might live in an area where that is not possible (I LOVE the "7 Years to 7 Figures" webinar but you can't even get a duplex for less than $300,000 and you can't live for free to house hack a FHA loan because the rents are to low... if I painted all of America with that brush I would never get out of Oklahoma... and that is my WHY for investing in Real Estate (there are people who have no problem driving on icy roads and in 4 feet of snow drift. I am not one of them) I know that sub $50K real estate investing can be done.

But I would rather not drive all over America to make it happen. (I will do it if I have to... I just don't want to) so If I can get into a Turn Key with out having to pay the full price I would really be happy. 

If that's not possible than so be it, and I will just have to take a drive down to Oklahoma City or even as far as Texas for the weekend every few months until I find a place that gives me what I want. 

I know people are investing in sub $50K real estate and making good cash flow after the first year or so.

I know people are buying Turn Key that cost around $40,000 and making decent cash flow (I find youtube folks saying they make $950 cash flow unrealistic so I think between $100 to $200 should be doable if I am wrong let me know) 

I know that the key to success in real estate is to leverage your debt to positive cash flow 

And again... I am new so maybe I am being stupid, I don't understand why all these things can not be combined into one nice little package (and if no one is doing that right now I think I see a business opportunity for a few of us) 

Here is the big picture the way I see it, as long as a goal is reasonable there is no reason why it can not be accomplished by you as long as you do the same  things in the same way other people have done who got what you want before you. 

But maybe I am just to new to understand that is not how turn key real estate works. 

@Federico Gutierrez I was looking at Akron Oh 

Follow up question... I am turned on by Morris Invest with his $40.000 turn key homes (they are also the one's looking for all cash buyers I hear. So that is a no go for me) . Is that realistic for me to focus on? I have been reading a lot about how lower end homes are going up in value over the last 10 years and if there is a real estate bubble now they will be the first to recover. (plus the 25% down on a sub $50,000 is a lot lower than a $100,000. Any feed back would really be appreciate. I don't care how dumb I look as long as I learn something. 

@Alex Bok Thanks for the heads up... I am all like a new puppy with the mail man walking up to the door. (Good thing my owner put a piddle pad down) I am now following you. See you in about 8 to 9 months.