All Forum Posts by: Ryan Dossey

Using the 50% litmus test I don't know that I would do it. Using just rough math the mortgage on that property with your down payment will be around $659.00 + HOA = $919.00 a month. 1800 x 0.5= $900.00. So you would be at -$19.00 a month.

Is your goal with the property cashflow? If I were you I would want to know how long the current tenant has been in place and if there is an active lease or if they are month to month. Also make sure you check comps. You want to make sure it is reasonable to expect to get $1,800.00 a month from the next guy.

Just my $0.02

Thank you very much. @William Brace.

That is EXACTLY the kind of answers I am looking for and I appreciate you sharing your personal details. I'm a Corvette lover so sorry to hear you had to part with yours. Those new stingrays look mean don't they!?

Exactly. For a new investor I think an understanding of what goals to reach for is a wise question to be voiced. That's why I asked basically for personal testimony and success/pitfall stories. What did you accomplish in your first year? Where are you now?

We all know there are thousands of "gurus" who pretend like this is the easiest venture in the world. After listening to some of the podcasts and following some of the site creators blogs I've come to the realization that these guys are the real deal. I haven't had subscriptions, seminars, or mentor offers crammed down my throat. There isn't another community I'd rather be a member of.

And props to Christian on the motto.

I appreciate the advice. I'm looking at several different options. A friend of mine runs a "we buy houses" campaign. Most of the people who contact them either either want out or want to move on. He is using the very things you mentioned to haggle it down. Not sure if she will bite but will know in the am. He also has a lead on a 3bd 1bath that would be a little bit more that I am more interested in. Just curious from a rental perspective what some of you vets have to say?

Hey guys I will be there. Trying to get there as early as possible but my wife has some graduation ceremony that I have to attend before. I'll probably get there around 630 or so. (before home depot is done). Would that be all right?

also on the St. Louis area.

I have friends in Illinois and have considered looking across the river but I want to start local first. I just figure that will be easier unless something I just can't pass up presents itself.

From what I've been reading/listening to I fully understand the 50%, 2%, and 70% concepts. What I'm curious about is in our area using say the 50% "litmus" test what is the average cashflow one should expect in our area? I understand that this is based off of mortgage, rent, and repairs/upkeep. More just curious for my own goal setting what is reasonable/safe.

Ie: I want to be able to quit my day job in ____ years. By generating an average cashflow of ____ a property I will replace my current income with ______ properties.

I have a possible lead on a first investment property. My goal from the strategies I have been learning and studying is to build a cash flow portfolio that can eventually be sold as a whole.

The property is in a quiet area but definitely urban. I've drove the streets and it appears to be a good neighborhood. It is a 1bd 1bth with an unfinished basement, a room that was added on, a kitchen and a living room.

Comps in the area rent at $595.00

The home should appraise for around 24k.

It is owned out right. "Partner" of mine met the home owner and passed her my way.

IF I can get the property for around 12k that should get me instant equity (make your profit when you buy) and a mortgage (15 year) of around $117.00 a month including taxes/insurance.

Using the 50% "rule". The cashflow on the property should be right @ $181.00 a month.

It also passes the 2% "rule".

My exit strategy is either portfolio or try to get a lease option tenant. As a first purchase the ROI vs the risk is appealing. My concerns are that it's only a 1bd and that may make it hard to sell 5 years down the road as well as it being close to a rougher area. Obviously section 8 would always be an option with this property as well.

Thoughts of the BP community are greatly appreciated.

I have friends in Illinois and have considered looking across the river but I want to start local first. I just figure that will be easier unless something I just can't pass up presents itself. If you could pm me the location and time I think I should be able to attend. I really appreciate your offer.

From what I've been reading/listening to I fully understand the 50%, 2%, and 70% concepts. What I'm curious about is in our area using say the 50% "litmus" test what is the average cashflow one should expect in our area? I understand that this is based off of mortgage, rent, and repairs/upkeep. More just curious for my own goal setting what is reasonable/safe.

Ie: I want to be able to quit my day job in ____ years. By generating an average cashflow of ____ a property I will replace my current income with ______ properties.

Thanks Joe! I know I'm younger then a good deal of guys but figure the sooner I get started the sooner I can work for myself. I will be a regular on here and hopefully will be able to help people myself.

I am definitely going to check out the South Side Investors Club I think that's a great local resource that I don't want to leave untapped. I appreciate the run down on schedule and topic James. If you don't mine me asking what area do you focus on in Il? Feel free to pm me if you prefer.

@Phillip Vincent I will definitely take you up on that offer.

Hello Scott my strategy will be buy and hold to start. I have a seasoned investor/mentor who is partnering with me. I have been reading all I can get my hands on. I'm narrowing down the area I want to be in as well as type of property. I plan on starting with a few Sfr's then moving to Multis. I have contractors for electrical, flooring, lighting, and security in my family who have agreed to help at little cost. I just don't know the speed with which this plan will be executed. It's obviously limited by the properties that meet criteria and sticking to that.

Really curious how long some of you guys/gals have been working at this and what was accomplished in the first 12 months.

I would eventually like to do flips and other things but I want to build up cash flow and experience first.

I'm on chapter 4 of the BP beginners guide and have a few questions. Obviously goal setting is important to proper success and progress tracking. I am thinking about the next year or so and trying to decide what goals I should set for myself. As a first time REI what kind of progress is a good target to aim for. 1,2,3,4? I realize ultimately only I can determine what is realistic for me I am more just looking for someone input on what you guys have done. I work full time but am willing to work my butt off to make this happen.

What did your first year look like? Where are you now?