All Forum Posts by: Rex Celle

In a situation where a property is damaged or lost due to a fire, and there is an insurance claim payout that is above and beyond the mortgage principal… Curious to hear, what would be your strategy...

@Cameron Riley At the end of the day, you are the owner of the property and responsible for all required expenses and bear many risks to maintain and provide housing to tenants. Sometimes they want you to understand their situation only, however we as property owners carry heavy responsibilities and issues that they do not understand when it comes to late payment or no payment. This is a business so we should not let our emotions distract us from the right things to do. Don’t feel guilty...

@David Zheng Fantastic David congratulations! It’s always great to hear stories like this because the reality is, taking risks and being patient pays off in just a few years. Question for you... What location is that you choose to invest in to build your portfolio of real estate?

@Vinh Huynh When investing in real estate, it’s always in your favor to have the ability to put down 25% to automatically have a good equity position in the property. If you are at a $500 negative cash flow per month, you may need to leverage other properties that you own to cover the gap for a while. Another positive to this situation would be the self funding aspect of the property since you are renting it out, so if possible, hold it for a while and apply an equity play strategy and use it to fund your next down payments to acquire more properties from a home equity line of credit. Always run a pro forma to know the P&L projection prior to the acquisition.

When investing in real estate, it’s always in your favor to have the ability to put down 25% to automatically have a good equity position in the property. If you are at a $500 negative cash flow per month, you may need to leverage other properties that you own to cover the gap for a while. Another positive to this situation would be the self funding aspect of the property since you are renting it out, so if possible, hold it for a while and apply an equity play strategy and use it to fund your next down payments to acquire more properties from a home equity line of credit. Always run a pro forma to know the P&L projection prior to the acquisition.