All Forum Posts by: Tchaka Owen

@Chris DeMello - trust that you did your research properly and your comps are not off. It's starting to sound like you want the deal so badly that you're second guessing yourself. IMO, that's not wise investing. You calculate your numbers and you stick with them. If the deal works, great. If it doesn't, you move to the next one.

FYI, others have already advised that you stick to $240k and not a penny higher. You've moved that line $10k higher. Now you're looking at moving it again. Stay true to your numbers.

@Kenny Lincoln - Ick! Can't stand "DMV". One DJ decides to call it that and so many others jump on board. DMV is the hellhole you stand in line for hours to get your license renewed. 

That said, the answer to your question is yes, use that equity as long as you leave some in the home and it's still cash flowing positive. Saying that there's a 20-50% increase over 7 years due to Amazon alone is meaningless. Replace "Amazon" with pretty much anything other than "meth/cocaine/opioids" and it's still true. That's 2.5%-6.5% yearly increase, nothing to brag about in the DC area. What @Russell Brazil said is accurate, Amazon is but one blip. If anything, the strongest and most stable is the US government/military...they still operate regardless of what the economy is doing. There are many who will play the appreciation game (many of us have done it), however the safest is to make sure your numbers work and if so, move forward. Any extra appreciation is bonus. Good luck!

@Krystal Watson - I agree with Mark that $5k isn't going to make or break the deal. My question to you is this: do the numbers work for you to buy a place for $75k that brings in $700/mo? If so, go for it. If not, move on.  
Personally, it's unlikely those numbers would work for me. Once you add taxes, insurance and maintenance, how much of the $700 is left? I probably wouldn't pay more than $50k or $55k, but that's me. We all have our models and what's important is that you stay true to the numbers that work for you. Good luck! 

@Jasmine Coley - I'm trying to understand your question (or concern). I see two possible questions.

1. Can you wholesale THROUGH another wholesaler.....the answer is yes. If I have a deal I want to wholesale and I don't have a solid buyers list but know that you do, I'll come to you with a deal and we'll work out a deal, say 50/50. Or I could tell you I want $3k, anything you make over that is yours. 

2, Can you wholesale TO another wholesaler.....the answer is yes. You don't care who is on the other end as long as that person performs. And you make sure it's set up to ensure performance. Eg, no inspection period, EMD goes hard immediately, etc. Wholesaling to wholesalers is very common. The longest "chain" I've heard of was 11; when they went to closing, there were 11 wholesalers involved.

@Rik Patel - If you're in Miami, hands down DREIA. They meet monthly in MIami Shores at the Country Club on Biscayne about 1/4 mile north of 96th Street. It's one of the best REIAs you'll visit and the main man Dave Dinkel is top notch.

If you do more business in Broward, consider BREIA. 

The Washington DC area is generally white collar. Yes, there's working class mixed in however there really isn't a zip for such. 22304 is near DC so prices will be higher. If you look up stats on the zip you'll see that over a quarter of the residents have advanced degrees and the avg salary is just under $80k. Even with higher prices in the area, that's decent. So the avg couple makes close to $160k/year. You may interpret that as you like.

@Mary M. - I would actually argue that pure capitalism is the LEAST emotional (as would many political scientists).

@Account Closed - lots of good advice above. One point I disagree with is the notion that only 1 out of 10 Section 8 tenants would be good. My experience shows that they aren't that much worse than those not receiving housing assistance. I've even seen homes where the Sec 8 tenant has kept it better than most homes I've seen.  

@Cassidy Burns - Virginia is a relatively landlord-friendly state......it's my home state (Commonwealth) and it's where I still own my first home. This late-fee, start eviction, they pay and it's over crap doesn't fly. Forget the money, hire an eviction attorney and let them handle it. It sucks to come out of pocket but well worth it. I've evicted a number of tenants here in FL and while I appreciated the experience it taught, I stopped at a certain point and used an attorney afterwards. Your future will be much more pleasurable. 

@Mark Jones - I am not there to see exactly what you're seeing so it's hard to tell what you mean by bad area. When I first entered the game a mentor mentioned, "no gun or drug zones". If an area is not so good because it's low-income, it's still viable. If it's drug-filled or run by gangs, you pass....because even lower-income parents are looking for safety for their kids; they're not buying in drug/gun areas. However, there are many lower-income families who aren't in fancy areas yet do alright. So that's the first thing to figure.

You did mention there's gentrification nearby, do you see that spreading to your area soon? If so, pick this property up (potential goldmine). If not, then it might not be the right property for you. Good luck with whichever route you select! 

@Daren Miller - sounds like a solid deal! The only question is whether the 10% is your only money, because it would be great to build on this. Good luck!