All Forum Posts by: Mike Cahill

@Ernie Sturzinger

I am a commercial lender in NJ and what most of the folks said here is correct, with commercial, most banks will go maybe ten years fixed max. a five year rate with the reset in year 6 is a very common structure. amortization usually 25 years. some banks will do 30 for multifamily.

@James Hamling Thank you for the thoughtful response. Several good points!

@Joseph Cacciapaglia thank you for the response! That would be my plan. To eventually trade up to a small apartment building.

@Kenneth Garrett thank you for the feedback. They were trying to make the argument that one big repair could wipe out a few years profits. I know even if that did occur I could still get a nice return on appreciation though.

@Chris Ma thanks for the detailed response. Will take this into consideration

@Jonathan Greene thanks for the thoughtful response. Will keep all of this in mind.

@Andrew Hogan

Thank you for your reply. I certainly have not maxed out my income yet in my current job. But the slow wage growth can be painful sometimes. I am good at what I do but it certainly takes a while to move up the corporate ladder (hence the reason I’m looking to supplement my income with real estate)

@Kirk R. Thanks for the reply. I already own a personal residence that we love so I wouldn’t want to move out in two years (we bought it a couple years ago).

My passion is investing and real estate intrigues me. Through my job I’ve learned a lot at least on the numbers side. Can’t say I know much about the more hands on tasks but I would outsource those jobs. (Maybe that would be too expense and eat into cash flow too much, I don’t know)

My mentors have pointed out that things go wrong, tenants are difficult so real estate investing as a side thing does not pay off in the end. They said you need a lot of units (I.e full time job) for it to make sense. Just wondering what people’s thoughts are based on experience.

I currently have a full time job in finance and would like to earn passive income investing in real estate on the side. I’ve discovered a passion for it and would like to pursue it. Some real estate mentors I have, tried to make the point that Owning 1-3 single family homes is not worth it and I should just pursue my full time job? Any thoughts on this? 

@Ralph Justiz Thank you for the reply. I tend to like your strategy better and would prefer to seek nicer properties but since I am a new investor I am trying to limit my financial risk and start with one or two less expensive properties. The obvious downside is the areas these properties tend to be in. I guess it will just com down to my comfort level and what I deem to be acceptable surroundings.