All Forum Posts by: Ryan Stumbo

@Dan Heuschele now that was informative and helpful without any bashing of me.. lol much appreciated. I believe you to be correct on most of what you said. I think my main goal is financial freedom and getting out of my 9-5. In order to do that I have to have good cash flow. Now if I was well established and already outside of my 9-5 job, I would definitely be more open to taking risks on high appreciating RE over cash flow. Hopefully one day I can achieve that level of comfortability to where I can just buy and hold something and wait for appreciation. Just not quite there yet. Thank you for all your insight and info.

@Casey Powers K

@Henry Lazerow got ya. The other markets I’ve bought in there are still duplexes and triplexes with positive CoCr right out of the gate or value add properties with potential to CF positive. So it is doable. But like you and some others said, maybe the Phoenix market isn’t good for my goals.

@Casey Powers you failed your communications course on constructive criticism, that I can promise you. Lol no where in the history of psychology is name calling considered constructive. But I have no more time to devote to you. Our time is gone. I wish you the best. If you reach Grant Cardone or Robert Kiyosaki level, I will be very happy for you. Better work on your people skills first though.

@Mick Hofmann thanks for the advice man without being rude. Seems to be a hard thing for people now days. I appreciate you.

@Casey Powers lol maybe you’re just rude. I didn’t dish out any criticism period to an individual, just a listing price. I’m sorry it hurt your feelings that I criticized the Phoenix market. I didn’t realize you were married to it. I said a price seemed high with the rate of return and asked a simple question if I was missing something (admitting something I’m possibly not seeing) .. just calling someone a “timewaster” or saying they scream that with no proof behind it isn’t constructive criticism. It’s just rudeness. Your communication skills are awful along with a few others on here. If you’re so into teaching people and giving them advice, I promise you aren’t going to reach very many people just being rude and assigning them a condescending name. No one respects that. It may work on the internet but in real life no one will want to be around you. I prefer just treating each person like a human and trying to politely get a point across without assuming stuff I have no clue about.

You’re right, I’m new to real estate. I’ve flipped 1 property, Airbnb 1, and turned my personal home into an Airbnb also. I have plenty to learn. I’ve learned a ton from nice folks on this post. I have learned 0 from you unfortunately. With those type of people skills, I’m going to make an assumption about you… you’re not about to reach Grant Cardone status any time soon .. lol good day

@Henry Lazerow running the numbers at an FHA loan are going to be much less favorable. I put in the exact dollar amount for every expense and put in FHA loan terms. But hey, take it up with Bigger Pockets and tell them their program doesn't work . Now if I did conventional these numbers would improve, but as I also said to another person on this thread, I want my 150k to spread over as many properties as I can and use leverage to pick up more properties. With a 500k W2 job, this seemed like the best route to stack up properties the fastest.

Man, I’ve got about 10-15 messages of people giving me great advice and being friendly in the process and educating. Then I’ve got you 3-4 folks on here that seem like know it all’s and emotionally attached to this Phoenix market. I pray for your all’s sake this market doesn’t correct itself or dip, or there’s going to be a lot of people on this thread hurting.

@Casey Powers oh FYI I have 3 properties in a year’s time. Not trying to use this to brag, but would an unrealistic buyer buy 3 properties in a year? Doesn’t seem to make a lot of sense, again bluntly speaking, but I’ll go with it.

@Casey Powers bluntly speaking back, I also don’t care what 3-4 people on this forum and 2 realtors feel about my intentions, goals, or plans, or how much they respect me. Unlike some on this forum, I wasn’t born with a silver spoon. To translate from country folk terms to city folk terms, that means I wasn’t born with a trust fund, and I grew up on food stamps and in trailer parks. It also is a reason why I’m not going to buy a multi family property for 900k when the rents are $1200 a month for 3 units. Money matters to me. I don’t just have more to blow that my family will loan me.

When I buy rentals, I look at it as a business. If I’m not making money, then why am I buying? So you’re right, comps are irrelevant to me when trying to make money. To me, I would look at someone buying a rental property based off comps as not a serious person also, so touché. I’m fine with you and whoever else hearing my “low down payment” or “low ball” offers and assuming whatever you want. I have received a lot of good advice so far on this post so I’m happy to have learned what I have so far. The negativity doesn’t affect me.

As far as not knowing what I want, I sent one reply to another posted on this thread with about 6 different qualifications I’m looking for, but let me restate them again to you personally:

1) cash flow and CoCr are my main criteria. I don’t care about appreciation as I’m not trying to sell. I’m trying to hold properties long term and pass down when I’m dead and gone. I also don’t care about comps. I want a property that will cash flow.

2) average to good location. If I’m renting I know rents can be increased easier in safer, clean areas.

3) STR or Long term leases make no difference to me. With my current properties I don't accept any bookings on my AIRBNB under 2 weeks long. I started investing for freedom and being able to have my money do the work while I go enjoy nature and life. So the more passive income and less managing I have to do the better. Anything under 2 weeks requires more effort with scheduling cleaners and flipping the rooms/houses. So in conclusion, I'm not really picky on the type of rentals I do, again as long as it cash flows and reduces my workload. I work 70 hours a week at my current W2 job, and going to do that until my passive income can cover my expenses with a little cushion on top.

4) Value adds are also ok to me. I don’t mind doing a fixer upper, again with the same OVERALL mindset… I am fixing this up to rent and hold long term. If I’m buying a house at 400k, putting 60k in, then only way to make a profit is to sell it for 550k, then I would try to avoid it. I’m not interested in flipping.

Is this enough direction or should I add more details?

@Casey Powers understandable. That makes a lot of sense. Neither realtor ever took the time to explain what they meant by saying I didn’t understand the market. It sounds as if I have my answers at this point. Appreciation is the sole driving force for pricing in these markets and most people seem to be counting on this explosion to continue indefinitely. I’m not a big believer in buying anything at its peak so I will continue to buy low and just fix them up or Airbnb them. I can be patient. I wouldn’t be shocked if another crash happens in the next 5 years or at least a correction I should say. But who knows, could also go 300% over the next 5 years. Time will tell.