All Forum Posts by: Robert Schumacher

Justin R. I would recommend QuickBooks Premier - Desktop version. It allows for you to run your P&L reports & balance sheets on a property by property basis. I currently run 14 properties in the same file and it runs smoothly. The online version of QB is too basic so don’t be tempted to save the money. QuickBooks will help you setup your chart of accounts when you select your business is real estate related. Good Luck 👍🏻

Kendall Short I would want to know if they are motivated to sell. Something tells me they are happy keeping it on the market, and waiting until an inexperienced investor makes an offer. What are other similar 4-plex units selling for (sold comps) and I personally would be offering less to test the water. Remember ... we make our money on the purchase. On a side note, my grandfather always said “All that matters is that YOU are satisfied with your purchase price.” If closing on this helps you get closer to achieving your goals, GO FOR IT !! Best of Luck

Mary Jay If you own a home with some equity, you may be able to get a HELOC and utilize that as your down payment, and keep your current cash for your required reserves. I’ve done this several times. Good Luck !!

Kathleen Steele Hire an attorney and start the eviction process. Sorry your having to deal with them.

Anna Runkle I like that you have thought about the Pros & Cons but it sounds to me like you may be trying to “force” a purchase to get in the game. I really would encourage you to find an area that provides adequate return with much less risk. You may have been beat out on your first couple offers but I would keep looking in that same area if the numbers work. As an investor, we often lose out to “homebuyers” because we won’t pay the same price. There are opportunities here in CA but patience is critical. If you have challenges with the location you are talking about, and choose to throw in the towel, what is your exit strategy? Would you sell at a loss? How plentiful are buyers in that market? Location Location Location !!!

John Colin Rogers I think everyone will agree that there has been some good information in your post. What ideas do you think can be applied today to start you on your path?

@Simon C. You have $300k in equity which could easily be used to buy 2 houses for 150k each and have $2,400 a month income. I just bought a house for 153k and it will fetch $1,450 - $1,600 a month.

Chad B. I’m open to sitting down with you to answer questions and share some of the successes and misses that I’ve had over the past 28 months. I reside in Campbell, run a business in San Jose. Let me know if your interested.

After reading all the info above, I would hold onto the property. Work toward building your next cash flowing asset. I am a buy & hold investor with positive cash flow. I don’t care if the value goes down unless I’m ready to sell. I allocate my time toward finding the next purchase and make my money on the purchase. It’s easier to buy 20k under market than to give up 2/3 of my equity. I think it’s important to figure out YOUR goals. Mine was to create positive cash flow to retire in 15 years. There are lots of ways to make money in real estate. Decide what you want to be the best at and duplicate it if your successful. Best of luck.

@Tyler Psenicska Nice Job on the write up. The one thing that I personally didn’t like was that you mentioned HOA. I would want to know if the HOA was properly funded or is hurting for cash because it could trigger an assessment. While I don’t think you will make anything on this investment financially with regards to cash flow, I think the knowledge you gain is priceless, and that you will probably be okay in the long run. (1) Do you have reserves to take care of this property if it goes unrented for a few months or if the HVAC goes out prematurely? (2) Be careful trying to get top dollar for your rental (ie.. Do not take a riskier tenant for a better rent). This is a business and while the money is important, so is your time energy and your experience being a landlord. If you went to college, you paid quite a bit of money for education. IF this property costs you $200-$300 a month, you can sell it to stop the losses but you would still have the education from going through the experience which I believe is cheap compared to college. Lastly, my first rental was a HUGE success and it was rented the day after we closed escrow. We cash flowed $50 a month the first year. If I didn’t GO FOR IT, I wouldn’t be here 27 months later with 13 properties and another one under contract. I encourage you to do exactly what your doing and TAKE ACTION. Wishing you the best of luck as you take on this new journey. It’s not easy. It is work but I enjoy it and hope the same for you. Cheers PM if you want to run anything by me.