All Forum Posts by: Michael Swan

Hi @Ari Hadar

Only look at the Commercial in a 3-6 block radius, 9 block radius max, not the houses.

Swanny

Do a 3 to 6 block radius Google earth walk and see where these people will be walking to shop.  Is there anything you would like if you lived there.  Or? Payday loans, broken or boarded up Windows, unsavory characters, a lot of trash etc... really indicating you are  on the border or edge of the bad part.  

I would look for good things like grocery stores, Starbucks, Panera Bread or anything that you would like. 

Swanny

Hi @Ari Hadar

Be careful of Old Brooklyn.  Make sure it is indeed in Old Brooklyn and is not really farther North.  Those areas get bad really fast.  Plus, be careful of the age of those buildings too!! Lots of rehab and old building issues etc...

Swanny

Sure I can talk now!! PM me or go to my profile.

I love this stuff!!

Swanny

Great question Ari.  They are looking for a sucker.  $500 rents are terrible rents for a duplex.  Be careful!!

Swanny

Hi @Matthew Horstmyer

I would say biggest piece of advice on people starting out, is now watch podcast 238.  I gave a lot of advice on that podcast.  I was also featured in Brandon and Josh’s book called How to Invest in Real Estate the Ultimate Guide to getting started in the first ch one pages 25-26.  Talk to people and learn from people that own properties in the areas you want to invest.  Be careful of brokers, residential and commercial that are trying to recruit investors like many on here due to compressed cap rates and really high valuation states like I have in California.  I never take advice financial advice from people that have not traveled the road I would like to travel on.  Plus, you want get advice from straight shooters that tell about the good and the bad.  Lessons learned and land mines already stepped on can be avoided by getting advice from the right people.  Possibly, you can add value to each other and do deals together too in some form or fashion in the future too!!

Swanny

Hi all,

This is Swanny from podcast 238.  I have coached and tutored people from BP for free since that podcast first aired in 2017.  They also featured me on the front cover and a feature article in BP’s new Wealth Magazine, which is really good by the way. At the moment I am a principal in over 230 front doors and counting.

You will most likely not like my answer here.  If you only have one single family or one door I will call it, that is pretty risky, like one stock.  Especially with this eviction moratorium etc... I would highly recommend keeping about $15,000 in reserves if you have one single family or condo, townhouse type rental property.  If you have two front doors and are not house hacking maybe $20,000-$25,000.  If you have 3-5 front doors maybe $30,000 if you have 6-10 front doors maybe $35,000-$40,000 due to having economy of scale starting to kick in.  

If one ore two or even three go vacant or a tenant dies or a roof blows off or furnace need to be replaced or pipes burst etc... you will have piece of mind and be able to pay the bills for a while.  

This is coming from experience.  You can never have too much reserves when Murphy’s law rears its ugly head!!

I love this stuff!! Onward and upward!!

Hi @Melanie Daigle

I was on Podcast 238 and more recently featured on the front cover with a feature article inside too in their new Wealth magazine and have over 200 units there.  Feel free to pm me.  

Have a great Valentines Day!!

Swanny

I sold my 10 rental properties here in San Diego in 2015, 2016, and 2017.  

I went from $50,000 cash flow peak in 2013 and 2014 for my now $200,000 cash flow.  Plus, we are now refinancing all the Money we invested total out.  So, what’s the return if you have Zero invested. 
Infinity!!!

Swanny

Feel free to contact me.  California is not a place I want to have rental properties at the moment.

Swanny