All Forum Posts by: Cheryl Butler

@Kyle Waters I use websites like Thumbtack and Angie's List that have reviews and photos. I also make sure the contractors are licensed and insured. Always get at least two bids for each job so that 1) you know you aren't overpaying, and 2) you have two sets of eyes on the project. If the bids are too far apart, you know to get a third opinion. Sometimes contractors overcharge, but sometimes they just overlook things (or don't really know what they're doing). Once you get a few projects under your belt you will know who you can trust.

On a side note, I wouldn't listen to Jim. I  think your hair looks great.

I really enjoyed Bryce's perspective on real estate rental cash flow. I have often heard people say they are looking for $200-$300/month in cash flow on a property and thought that wasn't enough of a return, so I feel validated now! I always listen while driving and wind up taking calls and (a-hem) watching the road, so I will listen to this one several times to be sure I don't miss a single grain of wisdom. Thanks for another great show! 

$100K Is too much to have wrapped up in a property with no cash flow. Thomas S. is correct that you haven't accounted for maintenance, tax increases, and other variables. And even if you do get $300/month that's not a very good return on your money. I know some investors have a business plan to hold and make money on tax savings, appreciation, and debt reduction, but you said your goal is to have multiple properties, so unless you have a lot of cash I don't see how you could accomplish that without better leverage.

If you call a tail a leg, how many legs does a dog have? Just sayin'.

Welcome to BP Edward. My day job is in commercial office rentals, so let me know if you'd like some insight about the Columbus office market. Also, any chance you are going to practice real estate law in Ohio?

If they want to renegotiate the lease, which is what they are doing, then why not use it to your advantage and ask for more term? We all know how expensive turnover is, so if you can lock in one of the existing tenants for some more term you will also benefit from changing the existing lease. Win/win. 

That sounds like a good buy if there isn't any deferred maintenance, though I don't see anything for lawn care. 

I like to put as much as possible in retirement at my W2 job because not only is it tax deferred, but I can borrow against it. It's like an equity line of credit only I pay the interest back to myself instead of a lender. Truly one of the best benefits in the system.

That looks like a nice place in the pictures. I would want information about the current tenant. Are they current in their rent, do they pay on time, and are they good neighbors? Also, when does their lease expire? You could offer $50K and see what the owner comes back with. Everyone needs a place to live within their price range, so if the area is not terrible like you say, you should be able to get good tenants who are living within their means. 

I always worked when in college.  When I was young I waited tables through community college, then later I worked at a fortune 50 company, who was paying most of my tuition to get a bachelors degree. The first time school was the focus, and the second time school was a side project, and in both cases the outcome was the same: I earned a degree. The real value and education has come through life life experience.