All Forum Posts by: Pete T.

@Jordan Powell if the properties are all owned by different people, why would there be a discount buying more than one? If you already like the deal and have an opportunity to get a discount, that is obviously a bonus. If owned together, I am sure you could arrange a larger discount buying all together. It is also nice to have 3 places close together, but not sure exactly what you meant by less competition for rent.

Not sure that would have worked w/ VA either, as you have to occupy w/in 60 days of closing. That could have thrown a wrench later on and probably should have been mentioned by the loan officer or realtor.

What is your exact goal in this? I am assuming there is more than just wanting to own properties together or in an area you find favorable? If not, the question then becomes, can you get good deals on all of the properties? Based just on the info provided, I would guess no, especially if any of the sellers thought there was some reason you wanted to get all of the properties. Do you have any other information on this?

@Jon K. Have you rented rooms in your house before? As others have mentioned, I would have a higher standard for them. It is a whole new ball game and IMO, not worth it. Are you sure it is easier to evict them? Is it legal to rent rooms where your house is at?

@Kyle Hipp, I think he just wrote it backwards of what he was thinking based on his reply.

@Brian Phillips - so you are warning against over leverage? I can understand the stance of your reply and completely agree that there is a need for reserves. I believe the discussion is what mix of leverage and reserves people utilize and that will be different for everyone.

I would avoid it all together. Do you really want to put that much trust in something like bitcoins and risk them being unusable? Also, the issues mentioned above. I have a hard enough time keeping faith in accepting our dollar.

Ok, I want to make sure I understand what you are saying:

Coc returns matter more as your debt/equity ratio increases, and matter less as your reserves increases.

Those are the main situations from which coc returns should be evaluated vs just return or investment. If you have minimal reserves and no equity to cover your debt, coc return is more important than roi as immediate cash flow is important in this situation.

-You say Coc is more important because immediate cash flow is more important? If you CoC is high (ie-low down payment), your cash flow should be less, unless I am missing something.

If you have 10 million in reserves and your debt is covered with sufficient equity to cover, you have plenty of flexibilty and coc returns approaches worthlessness as roi is a better investment tool.

-Why would you have 10 million in reserves?

The real question is: why would you be putting your money in a deal that was 9% yield if you invested it all upfront. 9% is terrible. The goal of investing is to make the best investment, and if that investment isn't real estate, then don't buy the real estate! The same applies with people wanting to cash flow $100 per month on a property as a goal. The return on that isn't all that great for a lot of properties. Aim a lot higher. Aim for the stars. Then if you fall a little short, your still a winner! Aim a lot higher that $100 per door if that is going to be your main strategy!

-Why would you pass up good deals waiting for a great deal? How is a return of $100 CF a month not good if you put nothing down? I will take that all day long. All of these metrics have their value. As mentioned a million times previously, a lot of decisions are based on the investors goals. For me, I would much rather have a place that I placed zero money into and getting $100 a door, than one I am putting down more money to get more CF.

The right time is now. You will never know what the future holds. Find something that meets your goals and continue to learn as you go.

You can evict with no reason as long as you give 60 day notice. It is called notice to vacate.

@Ned Carey

I cant speak to MD, but that does hold true in VA.