All Forum Posts by: Michael K.

@Rachel De Villava

And your equity in the property is what you owe on in subtracted from what it's worth today. So it must be higher than 45k? No?

@Rachel De Villava

Condos don't tend to cashflow very well. After taxes, HOA, insurance, vacancies and repairs you're probably making less than 450 a month, if you can cash flow at all.

Whether or not to keep it relys on your particular circumstances and what you want to do long term. Do you need the money in the condo to help fund your next purchase?

@Veronica Calvillo

Don't worry about not having made a deal yet, sounds like you have a lot of ideas already!

So what is stopping you from making the next step?

I've used rentometer in the past too. Although I think it's a decent tool I also believe it tends to inflate average rents, so might want to take that into consideration. The people who are posting their apartments for rent online are probably catering to a different audience to begin with, so will be charging higher rents than people who are just relying on putting a for rent sign in the window. 

@Frankie B.

How did you pick Illinois and what is your long term strategy. This one was a single family home? Have you run the numbers on it to see what kind of a return you are getting by renting it?

@Bett Rogers

Reach out if you'd like help running through the numbers on a deal, I have a couple multifamily buildings in the city and might be able to provide you some insight! My number is 8722407300.

@Bett Rogers

for multifamily properties there are a couple things to keep in mind. #1, the more units in the property the more closely ARV will be related to net rental income. Every investor will have their own number, but if the property can't produce at least a 8-12% return people may not want to even consider it, so focus on improving aspects that will allow you to increase rents.

#2 know your area and what things rent for, be careful not to over improve your building. If the average rent in an area is 1000 dollars you could probably justify asking 1250, but if the avg. rent is 1000 and you want to get 2000 you will struggle. Renters who can afford 2000/month are more likely to start their search in 2000/month neighborhoods.

@James Ewing

BRRR requires a reasonable amount of market knowledge and execution skills, really wouldn't suggest it as your first move unless you have a background in construction (but maybe this isn't your first rodeo?)

In some markets 250k is your down payment, in other markets it could buy you a large multi-unit outright.

If you have construction knowledge the best way to make money is leverage your knowledge to buy distressed properties and rehab them. If your full-tume job is in something completely unrelated and you still want to keep your 9-5 then finding something turn-key ish that can cashflow is a better idea.

Wouldn't rush into looking at long-distance deals until you have a couple of years of experience. Another thing I thought of as I was reading your post Is to make sure you and your fiance are on the same page about the whole plan. Since you are house hacking you may need to live in a less than ideal space at first. Make sure she understands how making some sacrifices now are going to put you ahead long term. If you don't manage her expectations you may be setting yourself up for future conflict. 

@Shiloh Lundahl

Only way you are getting true passive income is from legacy stocks, stuff like Coca-Cola KO, Procter and Gamble PG, and Johnson and Johnson JNJ. If that's the case then you would need closer to a 5 million dollar equity portfolio to be cranking out 10k a month.