All Forum Posts by: Tenzin Tomcho

@Minka Sha

I’m not sure why you would want to keep this.

1: You are already- $500 a month or -6000 a year in cash flow.

2: you are forgetting the 10% of the rent usually goes to upkeep/repair and your time.

In the end, you are losing about 800 to 900 a month. And rent is not gonna go up by $900 in few years. Maybe 10 years later.

Now imagine, if you did 1031 and plus put that $900 that you are losing into new investments. And run some numbers..

So before doing anything, i would redo the cost of keeping the place. And actually time and cost. You lost will be a lot higher

and it’s not worth the stress. Especially when market prices are dropping already.

@Dan Heuschele

You are willing to pay for overpriced house with little or no cash flow knowing if the market correct itself you will lose 20k.

All I’m saying is, don’t just buy something just because. If there is no cash flow when market is already at the peak. You are gonna be in - If market fixes itself.

If you do find a good deal with good cash flow then go for it. Just don’t buy stuff with little or no cash flow because everyone is buying it. I have seen 2 of my friends paid 600k for house with - cash flow but they bought it because everyone is talking about RE. Buying something with - cash flow will become liability and that’s not how anyone should do business.

Unless you are super rich or somehow got lucky with a deal, everything else is way overpriced. Outta 100 you might find 1 that will cash flow but with a lot of extra cost of rehabilitation. It’s just best to save that money and wait till market correct itself in year or so and buy something bigger and better. I’m sure they are already a lot of people saving and getting ready to take advantage of when the market fixes itself. I see no reason for rushing to buy something with little or no cash flow. When the market correct itself, seller will be fixing everything new and you can buy it as almost new :). So unless you can find that perfect deal with cash flow, just save up so when the market comes around. You’ll be all set :)

@Tyler Battaglia

1. house appraisal: so you know how much it is actually worth and don’t have to worry about over paying.

2. Home inspections : will give you list of things that’s gonna need to be fix or in future.

3. GC to get estimate on all the fixup

4. Run the numbers.

It’s also good idea to have structure engineer to looks at the house. This will rack up the most $$ but to me, I value this over a lot of other stuff.

@Scott Kelley

Cash flow always. If their is no cash flow then you are just gambling and it’s all just wishful thinking of the uncertainty of the future. Market is already at the peak. without cash flow, What’s your exit strategy. If you buy it at 300k and next year it’s only worth 250k. You gonna pay mortgage outta your pocket? Just because everyone is buying doesn’t mean you have to buy it. If there is no turnkey property than maybe look into fixer upper one. One that will give + cash flow. If you can’t find any, play the waiting game like rest of us.

Better do it fast, kicking someone out during winter is tuff

@Alyse Oz

HD/Washington Ave. look for contractor and just talk to them.

Wait till summer is gone. Winter is when you look for GC :) summer is GC peak cycle and will ask more

New here but I been doing a lot of research in that area you are trying to BRRR. If you goal is to rent it to students, I won't go pass 18 st and I would say 20th is pushing it. I was gonna do BRRR in temple for 120k but after doing few research and talking to students, I learned that they have this imaginary student house line. Within those line, I saw at least 100 BRRR still waiting to be rented/sale. Especially in the outta areas like 18st. Not sure how much of help this info does but hope it helps :) since I'm in same shoes trying to find a place for myself too

 University area( 52 and Down) Philadelphia