All Forum Posts by: Stephen Diakos

Welcome to BP. I lived in Tallahassee for just shy of 11 years prior to moving to NC. Still have my rental down there and always looking for others. Happy to help with anything. Good luck.

I treated my MBA like any other investment. Of course tuition costs have changed since I did mine but if you spend $50,000 to get the degree, and the degree earns you an extra $10,000 a year, that's a 20% return. Not bad. That being said, if you go to one of these crazy expensive online $100,000+ programs and earn the same $10,000 a year, maybe not so good. Mine ended up paying for itself in 3 or 4 years. All depends on the cost of the program and what you expect to earn when you're done. 

Turned 41 in June and aiming for "retiring" by 50 at the latest. Working on a 50 doors by 50 years plan.

I'm fortunate enough to have not had any turnover to the local properties that I own and manage myself. However, when the time comes, I've installed KwikSet smart key locks which can easily be "changed" to work with any key. No need to change the whole lock set. The property management company that handles my out of state property tells me they do the same thing. 

You have some good variables in there...7% for vacancy, 8% for CapEx, 10% for Management, 12% for maintenance, 37% total. I would think that's a bit high as most would look at around 25% as a grand total. Only thing you may want to change, and I'm sure you've already looked into this, you're assuming a 20% down payment and often you'll find 25% is needed for investment properties. You're cash flow is also under $200 a month per door. Not sure what your goal is but that's usual a decent number to look for. You're also assuming nearly 2% for rent which is always a good thing and hopefully attainable. I'm sure if you adjust some of those reserves and the down payment you may find it to still be an alright deal.

If all else is equal, as you say, the first thing that pops in my head is a pseudo multi-family scenario. Having 1 house with 1 rental income, versus 2 of each. If you don't have a tenant in that 1 house, your cash flow is 100% gone. However, if 1 of your 2 houses are not rented, you still have half of your total cash flow and hopefully that can help sustain the vacancy in the other house until you get it rented. If the overall cash flow in both scenarios is the same, you mitigate your risk a bit by having 2 units. 

Thanks

Afternoon, 

I'm in Winston and use Grady Ellis, The Ellis Firm, for all my closings and RE legal items. 

Thanks

We just closed a refinance on our primary residence. Went from a 30-year to a 15-year and got in at 2.875% with closing costs and what not all rolled in. We always paid extra so the payments are nearly the same and we got back a few hundred bucks as well. We're in NC by the way.

Afternoon, 

I'm in Winston as well and am up for a get together, virtual or otherwise. 

Thanks

Hey Justin,

Welcome to BP. I live and invest in Winston-Salem and the surrounding areas as well as in Tallahassee, FL where I used to live. You'll find Winston is a great town with some good single family opportunities but not the best area for multifamily. I'm concentrating my MF efforts in Florida as Tallahassee/FSU provides more options and I already have a good Property Manager in place. 

I'm always looking to connect, discuss, and learn a few things. I wish you luck. 

Thank