All Forum Posts by: Thomas Lorini
Thomas Lorini has started 16 posts and replied 208 times.
Post: $0 money in = $4680 in passive cashflow...another HomeRun! w/PICS
- Real Estate Agent
- Irvine, CA
- Posts 223
- Votes 140
Originally posted by @Aditya Soma:
Yes you're right @Thomas Lorini I do see that. me too actively looking for multi-fam units in Windsor
If you need any help in Windsor feel free to reach out to me.
Thanks Aditya! Any particular property manager you use or tenant finding service that’s effective? I’m really looking closer at multis there...reminds me of Hamilton 7-8 years ago, I think there are some positive changes happening in Windsor.
Post: $0 money in = $4680 in passive cashflow...another HomeRun! w/PICS
- Real Estate Agent
- Irvine, CA
- Posts 223
- Votes 140
Originally posted by @Justin Egge:
Possible dumb question here - why would cap rate be calculated prior to debt service expenses?
I would think loan costs would be deducted before NOI calculation, dropping the cap rate as result.
Hi Justin no questions a dumb question my friend. Loan costs/debt services are never factored into Cap rate. There’s tons of deeper conversations on this topic here on BP but basic premise is that Capitalization rate is not a metric of investment return on a specific investment. Cap rate is a market-driven metric, which measure the attitude and behavior of all market participants.
Here is a BP link I think will help you better understand:
https://www.biggerpockets.com/renewsblog/2016/05/31/cap-rate-formula-include-debt-service/
Post: $0 money in = $4680 in passive cashflow...another HomeRun! w/PICS
- Real Estate Agent
- Irvine, CA
- Posts 223
- Votes 140
Originally posted by @John S Lewis:
great story and i love the deal. my only question is re:
Repair/Maintenance/CapEx: $1060/year (one percent of purchase price) 1%? isn't that a bit low? watching all of brandon turners videos he always puts in at least 5% for just cap ex. so help me understand why so low.
thanks.
Hi John good question. The way I see it we just finished a complete renovation job addressing all areas of the house prior to putting in the tenant. We do this with all properties and my experience is in the first few years very little will come up. That’s why I think 1% works. Also remember we have the reserves for major issues.
Cheers.
Post: $0 money in = $4680 in passive cashflow...another HomeRun! w/PICS
- Real Estate Agent
- Irvine, CA
- Posts 223
- Votes 140
Originally posted by @Aditya Soma:
Great story!! Thank you for sharing @Thomas Lorini
Just wondering where do you invest in Canada, I mean which City/Province ?
Hi Aditya, in Ontario! Started off in GTA, heavy in Hamilton and now looking into Windsor. Looks like your live in Windsor...lots of opportunities around you my friend!
Post: $0 money in = $4680 in passive cashflow...another HomeRun! w/PICS
- Real Estate Agent
- Irvine, CA
- Posts 223
- Votes 140
Originally posted by @Rudy Estrada:
Awesome! Love reading posts like these.
Thanks Rudy!
Post: $0 money in = $4680 in passive cashflow...another HomeRun! w/PICS
- Real Estate Agent
- Irvine, CA
- Posts 223
- Votes 140
Originally posted by @Joseph M.:
@Thomas Lorini , congrats on the deal. Just wondering, do you live in Canada full time now? Or in California? You mentioned doing a flip project nearby.
Just wondering how that works for you , are you flying back and forth a lot (if still in California) ?
Thanks Joseph! I live California full time. I fly back to Canada 1 or 2 times a year. As I used to live there I built up a great team and network which I lean on to get s@&! done for me!
Post: $0 money in = $4680 in passive cashflow...another HomeRun! w/PICS
- Real Estate Agent
- Irvine, CA
- Posts 223
- Votes 140
Originally posted by @Tommy Spijkers:
Congrats! Like how you added the pictures to your post for a visual.
Thanks Tommy! Visuals def add to any story
Post: $0 money in = $4680 in passive cashflow...another HomeRun! w/PICS
- Real Estate Agent
- Irvine, CA
- Posts 223
- Votes 140
Originally posted by @Alex Shaughnessy:
I think the main point is how much closer you are to financial freedom. whether it is technically "0 money down" or not I think is irrelevant in this case. The numbers are great. good work
Exactly Alex! I was just trying to have a bit of fun in sharing my example. There are so many posts here on BP and sharing numbers can sometimes be a bit of a boring read. But you hit the nail on the head: the main point was that this deal is taking me one step closer to financial freedom!!....few more of these and I’ll be there ;)
Post: $0 money in = $4680 in passive cashflow...another HomeRun! w/PICS
- Real Estate Agent
- Irvine, CA
- Posts 223
- Votes 140
Originally posted by @Kelly Arthur:
Nice job!!! Very inspiring.
Thank you Kelly!!
Post: $0 money in = $4680 in passive cashflow...another HomeRun! w/PICS
- Real Estate Agent
- Irvine, CA
- Posts 223
- Votes 140
Originally posted by @Scott Royer:
how much did the $50k add to your other mortgage payment and impact your cash flow? Also what about the equity ratios on the first property?
Personally I’m getting concerned that folks are focusing on $2300 cash flow (like in your example) and consistently refi’ing and soon you have small margins not allowing for proper reserves and the slightest downtick in housing creates another bubble. And let’s be real some areas like mine aren’t in. I do want to I say kudos for setting up proper reserves on your deal though, a lot of folks don’t establish that up front.
Yes I’ll dig up those numbers soon. $50k over 30 years isn’t gonna add that much to monthly payments. And yes the other place still cashflows great.
I do appreciate your concern about people getting carried away with refi’’ng their properties, but I new the opportunity at hand and my market very well which helps in determining when to pull this type of trigger.
Just an FYI the unit to the right in my picture (attached to ours) sold this past August for $210k. Exact same property. So buying in at 106k using all the banks money for a cash flowing property which has comps almost double makes it not just a homer but I’d say a 2-run Homer!