All Forum Posts by: Matt H

The numbers don't exactly make sense to me. Seems like your operating expenses are very low. However, sometimes the numbers don't always fit into this stupid 50% formula that everyone thinks it should. So ya if it looks like it will turn a profit for you each month then I'd say it's a great building to get. Why not. Plus you're forgetting that you'll not only make that $1400 liquid cash flow but if the property increase at the rate of 5% per year that means you're making an additional $1100 per month in appreciation, and you're also making another couple hundred per month in mortgage paydown. So you're actually making a grand total each month of around: $2700.

put your money into something that is actually making your cash flow, not taking money out of your pocket each month. Sell it and reinvest in something cash flow positive.

You guys are joking right. Haven't you ever heard of buying a property below market value? I don't know if I'm gonna bother selling anytime soon anyway, so for now I guess it doesn't really matter.

I just lucked out and bought a home for $640k. There's a few comparables just doors down which are:

A smaller home for sale at $870k
A house that's the same size that just sold for 1.3m
Another home the same size that's for sale for 1.2m

Those are the closest ones to mine, just doors down, you can see them and walk to them.

Based on this information what do you think mine is worth?

Ya the AC must not be cheap.

Also for "sole proprietorships" your taxed at almost the same rate as you are personally, only that you might be able to write off a few more expenses. Within a corporation the tax rate is much lower, like about 20%.

Just out of curiosity,wouldn't you expenses on a property be far lower in southern states. I'm not sure if I got this right or not but wouldn't you have little to no heating bills? Do houses or buildings down there even have furnaces? And I think you can buy the buildings cheaper too because they don't have to be built with the construction used in cold weather climates. Up here heating bills in the winter run well into the five figures on apartment buildings. I'd think you could eliminate that by shopping down there and have a lot lower expenses.

How exactly do you get rich slow anyway? As your experience increases so will your income in this industry. So you're deals should be exponenially increasing in size and scope. Why would you want to get rich slow anyway? So that when you're 80 years old you'll eventually have a million bucks, when you're too old to enjoy it? Ya start small if that's what you're comfortable with, but in time you're bound to do bigger deals if you stick with the program.

I think people make the mistake of sometimes stereotyping various channels of advertising property. Some people say "once it hits the MLS it's already old hat". That's BS. Property hits different channels of advertising such as MLS, websites, papers etc for all kinds of reasons. So don't assume anything. There's always good deals on any of the channels out there. Although I think the best is sometimes having a good relationship with experienced commercial realtors who will sometimes send a deal to their best clients before putting it on the mLs.

Ya, never ever remodel a rental. Do not do anything to it, other than maybe paint the walls which is the cheapest way to freshen up the inside. But I wouldn't do anything to it if you're gonna rent it. Tenants never care. If it's not them wrecking the place it's their friends and relatives coming over that will. Only rehab if you're gonna flip it, then you need to rehab, and just do carpet and paint, nothign else.