All Forum Posts by: Bill Goodland

Nice job! Mind sharing what the rehab costs were?

Thanks again everyone for the input. I'm not money hungry by any means, in fact I've always been more than satisfied financially while still saving the vast majority of my income since I was a teen. I'm really more in competition with myself and want to generate the systems to build wealth before starting a family and really focusing on what matters most once I have achieved my medium long term goal.

@Peter Tverdov I have been writing down my goals and it has been very helpful thus far!

@Rafael Diaz Thats awesome to hear man congrats. I'd love to be where you are some day and will surely be working for it. Would you mind sharing your strategies, or what has been most effective for you? Yes I understand the basics of all aspects of REI, but I know some people have really systematized like direct mail for leads, have 3 flips at a time, wholesale the rest of the deals, and use the proceeds to fund one buy and hold and repeat for example. I personally consider flipping a very well paying but rather risky job, rather than a snowballing method to generate wealth but what has seemed to work for you the best?

Thanks, I appreciate everyones input. I am taking all of those things into consideration regarding waiting waiting to start a family and finding a balance between enjoying life, working hard and saving plenty of money(living in a low COL area). I guess to simplify the question, what strategy would you take in our current market to prioritize and accelerate increasing net worth? Cash flow in necessary for a deal and nice to have don't get me wrong, but I'm not looking to live solely off it anytime soon. 

I think communication is the most important aspect of any business relations. I would personally speak to the tenants if have had previous contact before to try to get to the bottom of all of this and then your PM. I would hope this isn't the case, but I have heard of PM incentivizing tenants to leave for a multitude of reasons including to have them move into a property the PM personally owns or if they want them out so they get a new lease up fee. That is why I would never hire a PM that incentivizes turnover by charging lease up fees. Do you happen to know if your PM does? Or has their own properties? If not, this could be a matter of piss poor tenant screening in which case the PM is clearly not doing a good enough job of either.

So I've known for years that I have wanted to get into real estate and then more I've been reading, listening to podcasts and being active on the forums have really opened my eyes to the power of REI and how it can grow your net worth(especially Brandon Turners 7 years to 7 figure wealth). Goal setting has been very important so far in my life and one I've set for myself is to have a millionaire net worth by 30. I'm sure plenty of people will debate on whether or not this goal is realistic or not shooting high enough. My circumstances are that after I am done with graduate school I will most likely gross over 100k salary with a rather flexible schedule(physician assistant). I think by living frugal and house hacking I can contribute 50k of personal funds every year for 5 years before 30. I've mapped out a few scenarios on how this might be possible by BRRRRing, wholesaling and flipping my way to more cash leading to more equity in buy and holds to greater net worth. I'm curious if anyone could provide some insight on what they're best recommendations are in this approach or what they would do if they were in my shoes. Thanks in advance.

Joe White yeah, I've had my eye on the Temple area for years now but it seems like anything within a few blocks of campus is really competitive now as so many investors have scooped up the cheap properties and renovated them. Most of the west philly properties near UPenn and Drexel seem to be the same.

I'm curious if anyone could provide me with some locations in Philadelphia to keep my eye on for primarily cash flow rentals. I am moving back to philly and after I finish graduate school plan to begin actively investing in primarily buy and hold. I do understand the potential headaches of lower income properties but my primary focus is becoming financial free ASAP through cash flow before diving into higher price points with higher quality tenants and appreciation potential. I have a decent idea of the philly market and know it totally varies so much by neighborhood. I also understand 2% rule isn't actually a rule; but am curious if anyone has experience finding 2% deals or anything close preferably without going into "war zone" territory. Thanks in advance.

Elbert Dockery correct me if I'm wrong, but I am pretty sure the 4% he is referring to is that his gross rent is 4% each month of the total purchase price of the property and not ROI, IRR or COC. 4% doubles the guideline that a "2%" property is a good deal, however I think cap ex is fair concern. My recommendation would be on paper it looks definitely worth pursuing, but make sure to sue your due diligence on potential problem tenants or future major expenses. Talking to neighbors with similar age homes may be able to provide some insight if you get the chance.

Sounds like you got a good head on your shoulders man. I am about to turn 23 and in a similar situation. Have wanted to be a REI since high school and now that I'm saving a good portion of my income I had the same thought of trying to get into wholesaling as a relatively low risk high reward option however for me personally, I think the best use of my time will be served on improving myself and my knowledge base while saving up as much as I can. Starting early definitely has its benefits, but so does starting when you're ready. If I were you, I would aggressively pay off the loans, but not in a huge chunk. The stock market on average will provide better returns than the interest on your loans so I would use that to build a large enough savings to feel relatively secure before getting a property under your belt. Yes you're at a huge advantage starting in your 20's as opposed to later in life, but starting with just 10k along with significant debt could be a much greater risk than the opportunity cost of waiting a year or so to invest when you're more settled into your job and relationship, with less debt and more money to invest once the perfect deal comes along.

I am curious to hear everyone's opinions on outsourcing property management for a portfolio of rentals to a specific person that you the investor hires. I know a lot of people prefer to manage their own properties because nobody takes care of your properties the way that you do, however I know one person can only do so much as one scales up. While I'm sure there are plenty of quality PM companies out there, most of the experiences I have heard have been rather negative such as fees incentivizing turnover and repairs being "band aid fixes" to a bigger problem. What I'm wondering if in the situation of let's say I build up a portfolio of say 20 rentals located within a half hour of one another, quality tenants in place with online rent autopay or and I no longer want to manage it myself. Is there anything stopping me from hiring a personal part time manager to basically just take the calls, contact my subs, and turn the unit over for say a flat fee each month with bonuses for every lease renewal(to incentivize keeping tenants happy)? I'd be curious if anybody has had success with, see it as an unrealistic position to manage only your rentals or if it's really only worth the effort if you want to start your own PM company?