All Forum Posts by: Steve Cunningham

Sometimes "cash for keys" is the best and actually, cheapest way to get someone out. Explain the pox that will follow them by having an eviction on her record and that "no more legal suits will be brought against them" if they're out in a week or two. Often works well. 

I have not found ANY lender willing to do a HELOC on a rental property that one does not reside in. Big banks like Wells Fargo did commercial loans under 1M last I checked. You may want to stick with the big guys.

29 Palms seems to be a separate entity from the other towns. Values don't rise as much as the others. Renting is dominated by the military, which isn't necessarily a bad thing, but you have to be prepared for the law that you are required to break their lease if they go. Joshua Tree is the hot commodity right now because of the VRBO craze and the popularity of the park. Be prepared to pay big there. Yucca Valley is the one that's left. It seems to be rising slow and steady. Also the farthest place some drivers are willing to commute from Riverside. So we have reasonable overall, VRBO-land and military housing. Three different type of markets in a relatively close area.

Nothing is bulletproof unless you have the riches to buy real estate at rock bottom prices and be able to sit on it for 10 years-then you shouldn't be on this forum if you can do that. One of my 4 plexes has EVERY renter laid off so do I throw them in the street and look for other out of work tenants (along with the cost of 4 evictions)? And yet taxes, insurance, mortgage and mgmt all need to be paid.(So how cold is your heart?) My other 4 plex needed an emergency reroofing so no income for awhile there. If you want to swap real estate in a bad economy then your cap rate goes to hell. So bullet proof??? We're a business like anyone else who opens a business and depends on customers coming to your door. If they don't come (or all don't pay), you lose. So be careful with the "bulletproofs".

Sounds like you need to put you're pinky to your lips like Dr Evil 😉

I would say that this is stupid, but it's spot on. Damn!

Agree. Read study read!!! Careful with interest only loans. You pay and pay and then you're in the same place as when you started. If the economy tanks, and you're not making more than your loan(s), you may have problems.

I assume that flats would be like single family homes here. Really hard to make passive income flow from them. Someone here would need 54 of them to make a good return, but I know people that do that. But it does take years to accumulate. Multi-family here do much better with cap rate and passive return.

Your pension is making a good return, but doesn't give you a passive return. Your choice on that. You could use that as a down payment and work your *** off for a pension or vise versa. And your holiday money. Once spent, all gone. Your passive income should be paying for your holiday. And if you're making $8000/mo (sorry, no pound buttons on my computer), why do you need a pension? Pensions substitute your lost wages when you stop working! If you have forever income from producing properties, you are "always working".

Investing is making money-usually upon purchase, either with a fixer or an income producer. Speculation is purchase with the hope that the economy does well or you bust. That is called gambling. Investing should be low risk. You make money by purchasing.

You should maybe start with the book Rich Dad, Poor Dad. Regardless of the controversy with the author, it has sound information on good debt, bad debt, good spending, bad spending, etc. Real Estate for Dummies will get you a good overview. Then continue reading! You obviously have the means to get started, but you need the knowledge to know what to do.

Good Luck

Bad buying decisions just suck-but it's all a learning experience. Bought a property in Colorado for $300K, lived there for 10 years, and sold it for $300K. Took the left over money, bought a foreclosure in Oregon, and made $200K on paper. Will be refinancing this next summer to buy another 4 plex. Bitter turned to sweet. Happens. Good Luck.