All Forum Posts by: Keeton Byerly

I don't think it's Indy alone - though I see much of the same happening with Columbus.

 Great idea and I can't agree more. 

I'm in a similar situation - granted, your districts will likely have more strict code - but in my area, there's no real regulation that would prevent you from obtaining a functioning multi-family property. 

In fact, I am closing on my second property this year and I'm trying to get a mixed use status (allowing commercial operations) - my plan is to essentially convert a SFH into a duplex with an addition in the rear as a car-lot (strictly to obtain a dealer's license) and buy at car dealer's auctions for capital flows into my enterprise.

Again, I could be completely crazy - but i'm hoping to at least get a temporary variance until I can afford a dedicated lot. It should also be considered that my City is dying for new industry and will support business as much as they can.

I've seen several multi-family home listings suggest that a 25-33% expense ratio was not only possible, but commonplace. In my properties, I've been operating at about 50%. Is this something that comes with economies of scale - more properties = better discounts with insurance, etc?

Depending on your circumstances and the term of the student loans - I would recommend using the cash to finance real estate and pay off the student loans through normal payments. 6% interest is not bad at all - if you can find properties that net exponentially more in return then your loan interest - you would be doing well. 

Fantastic video

Correction:

Allow me ot explain my thought: 

I was looking at two different classes of property for about 30k - a duplex in a bad area with great numbers or a ranch 3 bedroom with bad numbers but looked really nice. Fair market rent of $1200 total for the duplex vs 700 for the house. While I liked the ranch far more, I saw that the extra rent could be reinvested into my portfolio. 

To be fair this is a finance term, but I used it to shape my investments. The idea is with time, principle will grow exponentially if dividends (rent) are reinvested.

Those that understand compounding interest will benefit from it, those who do not will pay it - Albert Einstein

I had a bit similar circumstance: for me, I used compounding interest theory to build my portfolio. Although that house may not be in a particularly great area, if the ROI is high, it's worth the trouble (though this point is totally subjective.)