All Forum Posts by: Lawrence Ratliff

Originally posted by @Eric James:

$88,000 in Dallas? Sounds like that might classify as a 'war zone'. 

I would call the area a B neighborhood.  You don't get $1,295 rent in a war zone. Much success to you sir!

All you self managing landlords if you have not heard about Zelle Pay, you should check it out. It allows tenants to pay you electronically through their mobile banking app. You sent up your email in your banking app, then the tenants send the money to your email address and it is in your bank account in less than 5 minutes. No fees. It's been really great for me. You can request money from your tenant each month or they can initiate from their end. Very easy for both the tenant and you. Hope this helps! I recently bought a SFR with a tenant already in, so instead of hiring a PM I have a home warranty policy and use Zelle, so far so good. I'll bring in my PM once I need a new tenant.

Originally posted by @Scott Harper:

I like the idea. I think I will try something similar. However can you show how one of your properties is purchased and amortized 15 years and still give cash flow. I am just curious of the numbers if you have time. Thanks for the post. Very motivating

 Hi Scott, sure I'll be happy to.  The key is to find a market with relatively low home prices and high rents.  I buy in south Dallas TX and it fits the formula perfect.  I paid $88,000 for one property (20% down, 15 Year 4.125% fixed is $527 (Mortgage & Interest) + Impounds of $475 (Taxes & Insurance) + $ 129 Property Mgmt = Total $1,131.  Rented for $1,295.00.  It leaves about $2,000 a year for repairs.  Not much, but I want them paid off faster and at $70,000 loans the difference in monthly payment isn't much 15 yr vs 30 yr.    Also the Dallas rental market is hot, so vacancy in extremely low.  I hear Kansas City, MO & Dayton Ohio are other markets with similar numbers.  Again, I am not in this for income, strictly for a good retirement and assets to leave the kids. 

Originally posted by @Max T.:

I have a similar plan/path... Don't forget to pay taxes on your commissions!

 And pay taxes on rent, so it counts as income to help qualify for more properties.

Originally posted by @Cornel Smith:

I make a meager wage; live wit the parents. Thus far in 2018; saving like 400-450 per paycheck.

 Awesome!  You are well on your way!  Keep it up and you'll be there soon!

So here’s my story, why I thinks a good one, and that you can do it to. I like to buy SFR buy and hold rentals in Dallas TX. I need about $25k (20% down and about $5k rehab) to buy each one. I have a full time sales job, so bills are paid. From that I have $200 per pay period (every 2 weeks) go into a separate account. $5,200 per year, $10,400 every 2 years. Then the hustle comes in. I am also a licensed Real Estate Agent. I do 1-2 real estate transactions per year. That’s right 1-2. If I sell 1 I get about $7,500 per year, $15,000 every 2 Years. $10,400 + $15,000 = $25,400. I am married with 2 kids and love the family time, so 1-2 transactions per year is a small time commitment and just barely cuts into family time. If I sell 2 transactions in a year then I buy another property that year as opposed to every 2 years. I put all houses on a 15 year loan. They are all positive cash flow. My goal is to have 10 properties with about $15k monthly income, $180k annual. Definitely enough for me and wife to retire on. I like buy and hold because of the long term income for retirement and I’ll leave a cash flow machine to my 2 kids. Whatever life throws them money shouldn’t ever be a worry. The best part of this is that anybody can do it. You need a few things, cash (see above), good credit, a little discipline, and some serious guts (I remember sending the first wire transfer 😮). But I did it, never regretted it, and so can you. I hope this story encourages a few people. I would love to hear of others using my plan and finding success!!! Cheers, Lawrence

So here’s my story, why I thinks a good one, and that you can do it to. I like to buy SFR buy and hold rentals in Dallas TX. I need about $25k (20% down and about $5k rehab) to buy each one. I have a full time sales job, so bills are paid. From that I have $200 per week go into a separate account. $5,200 per year, $10,400 every 2 years. Then the hustle comes in. I am also a licensed Real Estate Agent. I do 1-2 real estate transactions per year. That’s right 1-2. If I sell 1 I get about $7,500 per year, $15,000 every 2 Years. $10,400 + $15,000 = $25,400. I am married with 2 kids and love the family time, so 1-2 transactions per year is a small time commitment and just barely cuts into family time. If I sell 2 transactions in a year then I buy another property that year as opposed to every 2 years. I put all houses on a 15 year loan. They are all positive cash flow. My goal is to have 10 properties with about $15k monthly income, $180k annual. Definitely enough for me and wife to retire on. I like buy and hold because of the long term income for retirement and I’ll leave a cash flow machine to my 2 kids. Whatever life throws them money shouldn’t ever be a worry. The best part of this is that anybody can do it. You need a few things, cash (see above), good credit, a little discipline, and some serious guts (I remember sending the first wire transfer 😮). But I did it, never regretted it, and so can you. I hope this story encourages a few people. I would love to hear of others using my plan and finding success!!! Cheers, Lawrence

Hello Everyone, I hope you are all finding success. I now have a few SFR long term rentals in south Dallas. I have them on 15 year loans, positive cash flow on each one (not much but I am in it for retirement income), so I am loving my current strategy of keeping them forever. I initially paid $88k, and the last one $117k, at this price increase it will tough to get to my goal of 10 houses. As much as I don’t want to I am considering another market. My perfect property is $60-$90k, with 20% down, rent covers mortgage, tax, insurance, and 10% prop mgt, with a minimum rent of $1,000. B- or better property/neighborhood. With that said, any other markets you local experts could recommend that meet my criteria? Thank you in advance.

I will be wholesaling in CA. If reassigning the contract, how is my wholesaling fee presented on the new reassigned contract? When I reassign the contract to my new buyer, does the sale price remain the same and my wholesaling fee simply become a fee to the buyer that is paid directly to me through escrow? If so does the HUD-1 get updated with my fee and then both seller and new buyer sign and return to escrow? I am trying to better understand the mechanics. Thank you!

Regarding your question where to start with your day job: any type of analyst position with a Real Estate Investment company, you should be able to start as a junior analyst with just a degree and not much experience.  The key is that an analyst role evaluates real estate assets, mostly commercial but it will give you the experience you need even if evaluating residential properties for yourself.