All Forum Posts by: Justin B.

Welcome. I'm not too far away. I'm in Montgomery County but primarily invest in TN and MS where my brother and father are right now.

Welcome. I'm close by over in Montgomery County.

@Jeff Lubeski We are in the same exact boat. I have 5 SFR's and my plan for 2014 is to move into MFR's. We aren't setting our sites as high as 20+ but we are looking at du/tri/quadplex's and maybe as high as 10-12 units but I'd think that would be it. I think 20+ units (which may mean multiple buildings) is a big leap if all we've ever done is SFR's.

I know there are people on here who would disagree with me but it's always about what your comfortable with. I'm not comfortable quite yet with 20+units so I'm staying lower. I don't know what I don't know. I figure less than 10 units is a good way to "make mistakes" without it hurting too much so I don't make them on the 20+ units.

For a house in an area of $70k houses, a $67k quote is just too much. Go ahead and tell that contractor no thanks and move on to other contractors. Also, your numbers look too high in certain areas. Yneed to keep it consistent with your area. That means a $70k house should never have maple cabinets and granite countertops, while a $500k house would definitely want those items. So be diligent and don't let any contractor talk you into $5/sqft flooring where $1/sqft flooring would be fine for example.

I think it's free to attend the first one, then there is a yearly cost to join. Here is the website.

http://www.memphisinvestorgroup.com/

Personally, I'd rather re-finance it and get the cash tax free (see a CPA for exact details). But if you can borrow more than you can refinance, I wouldn't do it just to do it. I'd have a very specific property I would want to invest it in and run the numbers. If it still meets your goals even with that payment, then go ahead.

Not a lot of people realize that a line of credit usually has a fee to withdraw and after some time they shut it down anyway because they require a new credit check. It's not worth it IMO unless you need a specific amount (and draw only that amount) and make sure your numbers on the property you are putting it into still work.

Yes, pass. That fails my 5-minute qualification so hard!. I am getting $1,000-$1,100/month rent on $90-$100k properties. Run from this one! Either it's priced way too high, your rent figures are wrong, or it's in a neighborhood you don't want to be in!

Welcome Chris. I'm local to the DC area too. Glad to have you here!

it's not bad, but I'm consistently getting 5.75% and 10% down (even got 5% down on the last one). 20-year ammoritized with a 5-year call (so we refinance every 5 years at a minimum).

I do have to say, those are pretty bad numbers. On my 2 Memphis SFR's I was able to get 40-50% cash on cash return and a 60-70% 5-year IRR. $250/month cash flow on a 70k property gives you those numbers :)