All Forum Posts by: Peter Baudendistel

@Michael Sepe

Quick comment before I answer. PMs provide a service, make sure you're getting good service. Good management results in better care through better tenants and vendor relationships. Sometimes you get what you pay for, so don't cheap out just to save a few bucks on the front end. Could cost you much more in the long run!

I am generally paying about 8% with 1/2 months placement charge that I roll into my monthly cash flow estimate. I.E., my PM costs about 12% of rent collected overall on annual basis, and has kept my time invested at a surprising minimum over multiple years, multiple homes.

@Bob B.

Haha. Took me a second to get that one. "What a goof, brass isn't....huh, wait a minute".

I am personally satisfied 100% with 6 months cash for all liabilities, my cash flowing properties as fast as I can get them, and 90/10 stock/bonds on my W-2 wages for all the rest. No need speculating anywhere else. Speculation is gambling, and gold has basically zero worth as an investment IMO as it generates no cash flow, and never will. It is purely valued on the unit price. No thanks.

@Joe Splitrock that's why it's important to look at the inclusive APR!

@Wendy Smith I have just locked up 4.0% (4.2% apr all in) through the Graham Parham team at Highlands Residential. I would highly recommend them as you vet alternatives... Closed with them several times, great group to work with.

@Patrick OToole there are certainly worse options than house hacking for a year. It's a great way to get a feel for things up close and personal.

My wife and I have been in the Airbnb game for years on our primary, and wouldn't change a thing. Ill hazard a guess that short term renting our primary has netted tens of thousands of dollars in net worth for us, and allowed us to purchase a dream property at 31 (150y/o farmhouse on the lake).

We make our largest income house hacking, taking in maybe 2x what our 4 current long term rentals cash flow in any given month.

I am invested in Memphis and Little Rock through Turnkey Properties (@Alex Craig @Andrew Akins) and MidSouth Home Buyers. Both markets approach 1%, and I have been satisfied with the remodel quality I have seen from both companies. Under contract on another two LR homes currently. Basic cash flows are about $300/month, but reserves need to be set aside out of that.

@Kaleb Musie

Same story here.

I purchased one in Little Rock in late 2018. I unfortunately had an eviction on my first placement due to some issues with the tenant I legitimately believe were unforeseeable. However, I was still positive overall for the first year after this issue, and don't really think I could ask for much more with how everything occured.

I closed on a second in Memphis late 2019. Nothing of note there.

I toured both homes, and several undergoing renovations in both LR and Memphis, before closing and would say I am 100% confident in the work they complete and have no questions moving forward with them in the future. Happy with both a 70k and a 120k home. Nice trims in nice areas.

I haven't met or spoken to Alex, but his people (notably Andrew) are good people, and I'll be happy to continue doing business with them in the future.

@Ebony Brown

What do you want to do, exactly? Single family, multifamily, syndications, land deals? It's important to know what end you want to serve, why are you moving forward? Often times that is more important than the how.

Personally, I got started house hacking. My wife and I airbnb'ed our personal residence. We then bought a turnkey home in the Midwest. Then upgraded our primary home into a larger house with a rental next door. Two more turnkey homes later, and I'm still house hacking with an offer on another SFH I plan to manage.

I've had several contracts fall through, both on SFH and MFH, just got to pick a place to start and begin talking to people. Offers come and go, but you've got to be around to take advantage of those you can.

Consider joining a local REIA.

@Jerry Stevenson

My first deal was a remote turnkey property in Little Rock AR. I drove 8 hours to view it before closing, met the PM, and had some fun with my old man for a day during the trip. The home cashflowed day one a few hundred a month. What did it teach me? Let go a little bit, be an educated risk taker. My first tenant paid enough to cover my annual liabilities, even considering I had to evict after 8 months due to non-payment. I was OK. It worked out. Reserves are important, even if everything check out.

My first real deal all on my own? A packaged primary home with in law house out back. I saw it linger on MLS for months, put a bid in which was ultimately rejected, they fired their agent, it sat for another few months, they listed FSBO and we reinitiated our offers. It was accepted. Long story short, the package deal sealed in about 10% equity on the big house, and we paid 35k cash for the smaller home to get the deal done. I have done no real work to the smaller home, and it is renting for 855 a month on a 2 year deal. I am completing a cash out refinancing next week and pulling out 100k of equity. I'll now be cash flowing 330ish a month, but "found" 100k for my next deal! On this, I learned to be patient. Be creative. This place languished because of the odd package circumstances. Not many people could afford the big home AND wanted a rental next door. I could, and I did. I took a 401k to make the cash deal work, and it paid off with major dividend.

@Adam L.

Having reloed under similar circumstances, I would not keep it.

Would you BUY this house to use it explicitly as a rental? If no, then don't keep it. Use the relo benefit to get out, take your appreciation already earned, and scoot it into other deals that make more sense.

Equity and appreciation don't pay the bills. Cash flow keeps you afloat when the tides go out, and you'll resent the place if you aren't making money on it but dealing with the headache of managing remotely or through a PM (and I say this as an investor with 3 remote properties).

Take the benefit and sell, in my opinion.