All Forum Posts by: Pat Jackson

I just listened to the August 1, 2018 podcast "7 paths to financial independence".  Really great episode.  They talked about the following method for those who don't want to be super active in real estate:

• Buy one house a year, ensure rent covers all expenses at a minimum 
• Have each house on a 15 or 20 year note
• Once you hit year 16 or 21 (whatever you amortize the loan for), start doing cash out refinances

This method only requires one house (more would work too) a year, and would greatly supplement or even provide a retirement.  

I have been wanting to build a portfolio of single families and small multis that cash flow ~$100 a door after expenses.  I've always thought building equity would be great; pay them off and enjoy more cash flow, do a cash out refi and buy more, cash out refi and loan the money, do a 1031 exchange into a more passive portfolio, etc.  I hadn't really ever thought about just doing the cash out refi to have cash and not pay any taxes.

This got me wondering, what about putting small multi families on as fast of a note as possible?  Ensure you can pay taxes, insurance, property management, save for vacancy, save for repairs and cap ex, but then put everything else into the principal and interest payments.  This way you pay the property off as soon as possible, allowing you to do a cash out refi asap.

Assuming you are ok with no cash flow for awhile, would this provide any tax benefit?  Avoiding rental income to take advantage of refinance income?

I met with a commercial lender today.  He could offer a 20 year note, 5.75%, and after 5 years instead of a balloon payment the loan would revert to the 1-year T bill plus 3%.

This seems unique.  I don't know much about the T bill, however as of today that rate would be lower than 5.75%.  This also avoids the balloon payment red tape and fees.  And, one could always go elsewhere to get another loan.

Thoughts?  Good?  Bad?  Indifferent?

BP meetup at 5pm on Sunday, August 5.  Come on down!

https://www.biggerpockets.com/forums/567/topics/597445-bp-meetup-in-saint-joseph-missouri?page=1#p3586223

I'm asking this from a "I'm done buying and am now holding my portfolio"

For folks that are enjoying their portfolio more than building it, what do you find to be the least amount of a pain in the ***?  The least time consuming?

I've read a lot of articles and forum posts, and listened to a plethora of podcasts.  Let's pretend one has 100 units, and they decide to stop buying.  They've now entered the "hold" part of their career.  You could have:

100 single family homes

25 quad plexes

50 duplexes

1, 100 unit apartment complex

This is hypothetical, so let's pretend they're all in a C+ neighborhood.  All under property management.  Thoughts?

I (like many I'm sure) am interested in delayed financing where I can put rehab costs on the HUD. See this recent article if you don't know what I'm talking about:

https://www.biggerpockets.com/renewsblog/work-with...

The search feature didn't seem to provide any brokers in the KC area (where I invest), so I thought I'd post on here. I welcome discussion covering delayed financing and what can and can't be on the HUD. I'd sure love to talk to a broker or two though.

The house is in Missouri (not Reno) and it is an investment, so I would like to buy more HUDS.

In short I put a house under contract with HUD, went past my 15 day inspection period, and want to back out before the 30 day closing. The house doesn't have a meter, and the utility company still hasn't installed one. Without the power on, my inspector can't do his thing. He says the A/C is old, and likely needs replaced.

Anyway, my realtor has spoken with the listing agent. She said that HUD is going to have me sign a release, however they won't let me bid on houses in the future. Will they follow through with this? Is it indefinite?

HUD isn't impressive, I'm not sure I have faith of them even keeping track of my name....

This is supposed to be a one stop shop, offered by Michael Quarles. It’s been available to anyone since January 2018. I see the appeal of one program vs podio where you sync numerous apps. That said, I can’t see how call/text isn’t a little clunky, and certainly isn’t as dynamic as Podio for a CRM. But maybe I don’t need something dynamic. At a crossroads right now, and debating which CRM to set up. I like yellowletters.com, the Michael Quarles podcasts, and his overall philosophy (haven’t taken his course). Anyway, hope someone has some input.

How is it going now?  An indepth review for sure.  I hope you're so busy you haven't had time to update.

Benjamin Maciel Glad you’re on BP! I know a very investment friendly guy I can set you up with. Do you have mortgages on your 9 properties? If so, you’ve about maxed out your options. Is your wife on the mortgages? She can get 10 too....