All Forum Posts by: Ron S.

@Jacobus Bor@Joe Villeneuve   Actually Joe is correct I'm in southeast MI and yes you can make 4k  off 150k capital investment. Jacobus Your in the wrong area. In downriver MI you will need less than 10 homes leveraged to make this happen pretty easily. It is 100% percent possible.

Stephen you can still find deals like this in southeast MI everyday. You can get a 20% COC return all day long and that's on a 20 year mortgage not a 30year. In nice safe middle class neighborhoods with good schools. I guess Ben is going to ignore this post also, and that's fine. I'm loving the PIGS!!! I hate a 100% return on my money in 5 years!

That's a fair price in Mi for a reputable company with a warranty. It's not if it's being installed on the side. The 60k  btu is sized right. You could get away with a 2 ton condenser but your price difference between a 2 and 2.5 isn't much. You should also be able to get a rebate for the high eff  furnace check into that.

@Ben Leybovich   @Alex Craig Still waiting on some numbers.  I hope you can do better than a 9% return on a 200k property. There sure is a lot of room for that property to drop in value.  When we have the next market correction that Ben seems to predict is coming that 30 % drop in value is going to hurt on a 200k property or 600k apt complex. Not so much On the PIG properties.  I could have a 100 percent market drop tomorrow and I'm still ahead. Can you say the same for your properties?  Also wondering on these apt complex's you don't have furnace repairs or plumbing repairs like the PIGS do? They don't require maintenance ? Also turnover is typically much worse on Apts. I know how long term and stable tenants seem to be in apartments!  Just letting people know not to listen to people out of your area that generalize that cheap properties don't work. They defiantly do work! 

@Ben Leybovich    I disagree!  In the Southeast MI area the 30k "pig" can be a killer deal.  Just an example of the first pig I bought in 2010.  I paid $18k.  Its a 2/1 with a full basement and 1.5 car garage. In a safe city with good schools. I did 2k in rehab to get it rented in 2010.  The home was in great shape just needed cosmetics carpet and paint. Kitchen Bath Windows Roof and Cement were all newer.  I have rented to the same tenant for $750 monthly for over 60 months. Have not received a late rent check yet.  I have collected over 45k in rent on this "Pig" that cost me 18k. And this "Pig" has appreciated to 55k in value during this time frame.  About a 300 % gain in value.  My repairs have been about 2k for the 5 years. My next purchase after this one has also yielded similar results!  It can be done with good due diligence its not impossible.  If you can find me better returns than this on the more expensive homes or apts I would love to hear about it.  Cheap doesn't always mean bad it might just mean you did good! 

@Bryan N.  I'm assuming that $22 total  includes the AC also. Not bad in Mich. it would be about $21 for Furnace AC and HWT. Yes it would add up but a typical Comp. board Blower Motor type repair is usually $350 and up to repair. And I look at it also as I am not dealing with finding the company and handling the setup work to get somebody out to the home. And the tenants get a live person to talk to 24-7 and they love it! They recognize the big utility company name and realize your not sending out a handyman to fix the furnace.

@Robert Farris@Joe Villeneuve

Joe is exactly right  DTE appliance repair is great!  I have 4 homes on it currently. Its $13.95 monthly which covers  Furnace/Boiler and Water Heater.  Some other hints when calling- If you are a AAA member you get a 10% discount of the $13.95 fee. Bringing your total to $12.55 monthly. Also ask them for the landlord discount if you sign up 3 or more homes you get a month free for multiple home discount. That's one you need to ask for they wont tell you! It will cover pretty much everything on the furnace except a bad heat exchanger. If that's the case your buying a new furnace. They have a 24-7 live operator for your tenant to call and usually service within a day. Its a great peace of mind! You can also add on air conditioner for $6.95 monthly.

@Joe Villeneuve  Was wondering on your 300 monthly CF figure is that using a 30 yr mortgage?

I think that everybody has there own risk tolerance. I would believe there are many investors on this site that are earning a primary living investing in real estate. If thats the case leverage could be there way to success. If you have a good paying day job rental homes might just be a supplement to your income. I personally hate debt always have. I enjoy owning free and clear property.  Call me stupid ! Not everyone has a comfort level to have lots debt. Find a plan that works for you and stick with it.