All Forum Posts by: Steve Hyzny

I've been on BP for a while, listening to the podcasts on my way to work, normally get about 5 min of stuff I can use, but I would get nothing from music.

So far I have used Cozy.co and it has helped me collect rents. I use to have to stop on my way home to get a check from one tenant each month, she forget to leave the check..... Cozy.co collects the rent on time every month. I just sent my 1st credit check via their site and am waiting on the results.

STESSA.com

finally 1 year of managing my 5 properties on stessa. Year end taxes was just a button click away. It pulls all my transactions form bank, credit cards and I just pick what property to apply them to. MY account loved their report vs my spreadsheet. (took me hours to do) I chore I hated into a click and choose easy task.

Rent estimator

Now my new favorite tool. My 1st rental after 7 years is vacant. I was charging 750 and was thinking 800 might be good. I just rented it for 1100, which the rent estimator said I could. Need a say more.

I just have to find a good mastermind group, I've had two and only 1 other person in the group will even post after the 1st week. I you want to share and learn together, let me know. Even better if nearby, so we know market together.

I have 5 paid off class C rentals, I use 150 of my cash flow to buy Merck stock each month in a DRiP account. Makes me feel better diversifying.

Because of them I am now looking at out of state rentals. I manage all myself but am looking for managed properties as my next level.

I am not stopping my class C's since they work and will allow me to move up to A and B's

We always grow from our experiences, so my growth is taking me out of state, I hope. If I stumble on my way uphill as I learn more, I have a solid base to fall back on to keep moving forward. With 440K in properties and 35K debt I feel comfortable to make a move where I'll be financing bigger deals and if something happens I have equity to use. So I can afford a bad tenant, roof repair, covid issues because I stand on a solid base.

When you finance everything its like an upside down pyramid. One block can bring it all crashing down. I right side pyramid with a solid base will last for 100's of years. Your family will appreciate it long after you are gone.

Let others do what they do and keep doing what works for you and expand when you are ready.

I hope you can because I do, from what I understand the LLC and you are tied together if its a sole LLC, the money while in separate accounts winds up on your taxes forms. I just formed my LLC and am buying my first property in the LLC name. I have 5 in my name.
I have been using separate bank account and credit card to keep things separate. I now have Home Depot credit card in company name to build credit and will have 1 rental in the company name. I have looked into commercial lending and a local bank will refi several properties into 1 loan to buy others in the company and not against my personal credit.

So if there are issues I hope someone tells me too.

Some will say take the deal and figure out the finances later, a little risky.

I agree with find a partner that is in a similar boat or further int he game then you, so you both can get a win. Offer to buy them out when you refi on your own. Set the terms upfront.

I have 5 properties now it been 7 years running. I purchased my first for 27K 10 K rehab and rented for 7 years, with only minor issues. Added my 2nd 2 years later, and kept looking for just the right deal. I throw a lot of low balls out there and only get a few close. I self manage and believe that diversification of my assets is important. I have a 401K and stocks enough to buy a nice house but like knowing if I fall I have something to fall on.

I take $150 each month and auto invest it in s DRiP (Direct Reinvestment Program) to buy a dividend stock with my rental payments. It automatically takes a little of my profits and puts it in stocks so I have both real estate and stocks growing for me. I know many would say I could use my stocks and leverage to buy more properties, BRRR my properties...... I have 5 SFR's worth about $550,000 and I owe 35K, I'm buying solid C rentals and pay them off, its a slower path but I'm growing and looking at doing 2 deals min a year now with less then 50% leveraging of my existing. I want room to survive any issues. I still work full time because I like what i do, but am building slowing on a solid foundation.

So the reason for my story, watch what you risk. I would save and continue looking for a good deal you can swing without putting everything at risk. With work there will always be another deal.

Are there separate utilities for the different units? If there are separate then in the future you do not need to include, if they did not separate utilities for each unit, then it will be difficult to separate charges for each unit.

I agree with Mike McCarthy, just adjust the offer if needed. Always be prepared to walk away. If the deal does not feel right to you, why force it and deal with the stress, there will be another deal.

Go, its not about the subjects you study, at a young age, it shows you can start and finish large tasks, are mature enough to complete a degree. Can follow the rules to graduate and understand you have to follow the rules. You have rules in REI and its a good lesson to learn.
It shows future employers that you can complete what you start, that applies to investor too.
You don't need to spend 6 figures, community college then a local state 4 year college costs less and provides the same life lessons.

Ask to see their current residence as part of the interview process. What their current place looks like is what your place will look like in a year. Do not believe the stories that the landlord sucks and doesn't repair things and other stories to explain why the place looks like trash.
While there are bad landlords there are more bad tenants. Stains on the carpets, holes in walls probably didn't exist when they moved in, if they did, they should not have moved in.

@Michelle Santana

You need to read your employment contract, some employers limit outside work. Some state employees have limits on outside work I’ll IL.

I have an issue that I never though of until I started looking at real estate in different markets. I'm from IL which is what I learned a high tax state not just for property but for everything.

I inherited the family house a 3 bedroom 1 1/2 bath ranch, my grandfather bought the property, dad built the house and i remodeled after my fathers passing. This makes a decision to leave emotionally difficult.

The numbers $300K+ value, nice neighborhood, park across street, forest preserves nearby, friends all around area from 5 min to over an hour away. Property taxes $10K per year with home owners exemption. I work an hour away, in an area close to Indiana and south of Chicago where housing is cheaper.

I have 4 rentals that have good equity but low cash flow. High taxes cause loss of cash flow.  All rentals near work as houses were much cheaper but good rental market.

So I started looking for rentals in Indiana and Vegas and saw taxes 10%-30% of IL for similar houses and values. As I looked I found some nice 3 bed 1-2 bath houses for $130-150K with 1K property taxes. Some with up to 1/2 acre of land by a nice lake. Gas is $0.20 a gallon cheaper in IN then IL on average, so many costs would be reduced.

Looking to retire in 5 or so years looking that moving to IN (15 minutes to work) would save me time, money and property taxes. $8-9K per year. In the 5 years to retire I could have an extra $40K and that saving continues. I could use the extra money form the house sale to fund some cash flowing properties in areas with reduced taxes that I could afford property management.

I'm slowly working on the emotional attachment to my house but wonder if anyone else has made similar choice, and how to worked out. 

I just cancelled my closing in Vegas, lost the earnest money but at worst I pickup the property at around the same price when recovery comes, at best I get it a lower price as the market adjusts to the recession. Its an investment property so you don't have to buy it.

I took my down payment and put some back into the stock market, so when it recovers I'll hopefully have more for the down on my next property. I think Vegas will be hit hard and will take time to recover.

Why risk when you are unsure of the outcome.