All Forum Posts by: Salvatore Lentini

No way the Fed is going to be able to raise rates 6 times by end of year.  "Something", whether that's a recession, stock market plunge, housing price plummet etc will change those plans.  I'm no doomsdayer but whenever there are predictions of a bunch of rate hikes they never seem to happen.  I think they'll get a few bump ups in and then they'll have to stop or drop them back down.  Doesn't matter if you believe it's right or wrong, the reality is the cheap money train is too addictive for the gov't to get away from.

@Kenneth LaVoie - that's awesome.  Good for you and your wife.  In the end aren't we all just striving for goals to make ourselves happy?  (or what we "think" will make us happy?)  If you're happy with how things are going then just stay the course.  That doesn't mean you'll feel the same way in a year or 10 years but for now, if what you're doing is working and you feel good about it, who cares what the "gurus" say is the ideal way to deploy your capital.  You can always adjust your strategy in the future.  Good luck!

@Steve Vaughan - agreed.  There are things "on paper" that technically may make sense financially when it comes to real estate but we're humans and everyone is different.  Decisions need to be made based on what works best for you, your comfort level and the enjoyment you can get out of your real estate investing career.  If something makes sense mathematically but stresses you out and makes you unhappy, it's not worth it.  Leveraging can work but the numbers on paper aren't the only thing that matter.  

@Kenneth LaVoie - if you do a HELOC then you can get access to the money but not pay interest on it unless and until you use it. Depending on how big of a line you get you can become your own hard money lender. Or at least use it as down money on a value add deal that you can then refi and use the cash out to pay your HELOC back down.

@George Azita - What does your software calculate?  I'm putting together 5 year projections right now to see if I'm going to put an offer in next week.  Past few years I've been acquiring properties in the $3-$5M range.  This would be a step up but nothing I haven't done before.  Actually most of my prior deals had a lot more hair on them than this one.  Just need to show my potential investors what kind of returns to expect.  A lot of it will depend on the type of financing we get.

@George Azita - I agree, most new investors think the numbers on paper = real world results.  There are many x factors that can wipe out cashflow for the whole year.  My biggest contributor to wealth has been principal paydown (paid by the tenants) and appreciation.  I don't rely on appreciation but it sure is nice!  Where did you buy to do $40M since 2001?  Finding properties where the numbers make sense are far and few between now but I have one that I'm looking at now.  100 units near me, rents under market, simple upgrade plan, similar to other deals I've done but I'm sure there will be a lot of competition.  Reaching out to my passive investors now to gauge appetite.  Took me a few months to find this deal though.

Up until now I've only ever had people I know invest in my properties.  My portfolio is growing and in the past few years have been acquiring $3 - $5M properties.  Recently I've come across larger opportunities ($7.5M and $15M) that have significant upside and are the same as what I've been doing just more units but I will likely need to expand my investing circle to acquire them.  Just want to make sure I'm staying within the bounds of changing SEC laws.  How to market, who can invest etc.

@Aaron Wolford - if you message me I can give you some names of property management companies that have been referred to me in the past few weeks.

I have a JR in high school and we're looking at colleges.  Trying to figure out financial aid possibilities.  How do colleges and the govt look at finances when household income is not cut and dry W2 income?

My wife has part time W2 income and I'm full time real estate.  Because of depreciation and expenses, my real estate businesses show a loss on paper.  Some LLCs show a profit and others show losses but overall-combined a loss.  When that loss is combined with my wife's W2 income our household "income" or Adjusted Gross Income is very low.  Do they count assets?  All of my assets besides my personal residence are owned with partners.  Wasn't sure if they count them if they are owned in LLCs and are not sole member LLCs.

These properties were great for the beginning of my investing career.  They’ve made me good money but I’ve been buying bigger and bigger properties in the past few years here in PA. My latest, fingers crossed, is a $7M+ deal. So I decided to sell off the remainder of my Dayton portfolio to focus on my PA portfolio.

1718-1722 Rangeley Ave. Dayton OH 45403
Price: $280K
6 unit multi family, Rent: $3700/month. Taxes: $4428. Insurance: $2037.
Managed by: Independence Property Management.
Has 1 vacancy in the process of filling.

210 N Cherrywood Ave. Dayton OH 45403
Price: $185K
4 unit multi family. Rent: $2400/month. Taxes: $4343. Insurance: $738.
Managed by: Independence Property Management.
Property is fully leased.

1613 Gummer Ave. Dayton OH 45403
Price: $175K
4 unit multi family. Rent: $2600/month. Taxes: $4647. Insurance: $751.
Managed by: Independence Property Management.
Property has 2 vacancies in the process of filling.

Cash offers preferred but welcome all.  Enjoy!