All Forum Posts by: Jonathan Stone

@Langston Carr

As a local to Little Rock, do you feel it has the same growth and employment potential as Memphis?  As an out of state spectator, I'm also on the left coast, Memphis caught my eye for the fact there is varied employment and diversity of industry.  Does LR, AK have some of those same features as near term potential?

@Karl B.

If the value of the dollar is decreased due to inflation and increased currency available why would the prices of real estate drop?

Hi BP Community!

You guys are awesome and I really appreciate this community. I wanted to ask if anyone out there has had success house hacking with a family and how you approached it and what types of properties you bought. I believe this may be the key for most people to get started. My wife and I have discussed some of the options to move forward with our REI journey, however we have a baby at home and 2 dogs and might not make ideal neighbors in a typical duplex triplex, although it may also be a temporary living situation until we move on to the next investments.

Really looking for stories or even references to podcast/webinars where this is discussed.

@Dan Cerempei

I agree with Denver.  It could easily make sense when you evaluate over the next five years to keep the property.  Also realize if you are holding 30k in equity after transactional costs of selling and buying you may not have all of that available to put into another property.  Frequently people forget the frictional cost to buy and sell a property.  Once you include the costs of selling and financing a new property your could use up 8-10% of your equity.

@Steve Morris

And at the same time Black Rock was 100% ready to make the deal with LB to acquire if the debt could be carried by the fed long enough to execute the deal. Watched that happen from the SF office of BR while working. A lot of people went crazy that day when they got the no go.

@Alecia Loveless

Thank you for the feedback. More and more I hear of people going larger and looking for efficiencies or moving to STR where there is more room for value add.

Thank you so much for this feedback!

I really think this could be our key to success as the destination areas we are looking at would be break even with a 25%+ prop management fee, but could be profitable if we managed ourselves. 

Do you use the properties yourselves at all?

@Kimberly Wood 

I understand there are some advantages to an all cash deal however I am wondering what are your teams goals.  For instance if you were to purchase this 250k place and rent it for 2000-2500 assuming you cashflow around 50% of gross rents, your return likely would be around 5% on your cash.  It seems that it would take 15 years depending on appreciation and increases in rent to be ready to make back your initial investments.  I am not suggesting it's a bad idea, but really not sure I understand the motives of buying an all cash deal with no value add.

@Brian G. Thanks for responding.

I love that you started by getting on the same page with your wife.  I recently read "The One Thing" and decided my first One Thing was making sure me and my wife were in alignment.  

We have discussed STR as an option and even looked at some possible properties but are nervous to make that time commitment. From the numbers I have seen PM for STR are often 25-35% of your gross. How are you and your wife handling that portion of the business? Self manage, with cleaning service only? Using a quality PM and finding properties that still meet your parameters?

@Alexander Felice

Thanks for the reply! I loved your BP episode and like the idea of delayed financing to increase the speed of growth with BRRRR. Sounds like you have moved onto to bigger things at this point, and I appreciate those insights.