All Forum Posts by: Tim Johnson

@Johnnie Schneider Where is your main income stream? After living in your FHA-purchased home for just one year there won't be any cash to pull out. You're correct that purchasing properties, renting them out with a cash flow, and repeating the process by adding properties IS, by definition what most REI practitioners are doing. We just can't see enough data from your situation to know how to best advise. Getting rid of any consumer debt, taking on extra work of any kind, saving like crazy, getting your girlfriend and the dogs on board, and getting 50-100K of reserves ready may be your best bet at this point. If you CAN get into a home with an FHA loan in south Florida I see no reason not to.....but still....where's the main income coming from?

@Sydrah Dai  - just a possible hint - when using zillow to help guess at rents,  don't just plug in your own address. Go to zillow as if you wish to rent and check all the units for rent in your area. You can then compare size, amenities, etc. That will give you a more accurate idea. e.g., for my rental home, zillow lists rental value as $2300 - in actuality I rent it for $1750 which is about market rate for that community.

@Josh Milewski Yeah, or ask the landlord to be up front with the tenant.....or something else - like have the landlord tell the renters that he was having an agent stop by to write up a BPO - which is different than having a prospective buyer come snooping around. Anyway, that would be me, since I'm a realtor and am always pricing properties. I guess if pushed to answer.....then yes, I'd rather move on than be secretive, less than upfront....or outright lie. The issue here is really with the seller.

@Josh Milewski - hey Josh, I would always try to avoid getting stuck between an owner and tenant. If there's some kind of trouble between them, it will surely show up again if and when you wish to go forward with an offer. Good on you for recognizing the minuses in this situation. Go with your gut - it sounds like you have good instincts.

Honestly Ashley, there are no magic pills or short cuts - if there were, far fewer realtors would fail. Having said that, who among us doesn't need advice, coaching, encouragement, accountability, etc.?

If your own brokerage doesn't provide these.....you might check out these two resources:

1. Ricky Carruth and his "Zero to Diamond" program. His coaching is all free and although he occasionally gets too hyped up for my taste, he sticks to serious, no-nonsense basics in his suggestions and plans.

2. 72SOLD - this is the BEST list-side training and "home selling program" that you could ever get involved in. It's not free but it's reasonable. There are plenty of others in the Tampa area who are already part of it. Get connected to them to hear all the details. 

@Xavier Mazza - most folks in your position - young, no W-2, still paying for college - will reach out to parents to get the ball rolling. In fact, many parents have used a home purchase in a college town to set up housing for their own child / student.....as well as to make it an investment for themselves by renting out the other rooms, thus providing free housing for their own child and getting a decent ROI on the property. Maybe your folks would be open to splitting equity / profits if you do the work of managing the house hack?

If that's not possible.....you still have multiple options to invest your capital safely until you're out of college and working. Relax....and make the most of your studies. It's not a race.

@Ashley Mason - of the many books you COULD read (and I realize you weren't asking for book recommendations) I definitely recommend "The Millionaire Real Estate Agent" by Gary Keller. Don't be put off by the title - which sounds like, and sort of is....click bait. This book is NOT about money.....although all of the smart planning, business tactics, real estate wisdom, and teaching will certainly lead to a better financial foundation (and client database). Best wishes....

@Michael Hauer Lots of folks here on BP are not doing any of the three activities that you claim encompass all of DOING real estate - e.g., realtors, making a good income by helping others buy, sell, and invest in real estate. I think there's a good argument to be made that they, too, are "doing" real estate. Cheers!

When you say your payments on the property are $2,700.... what do you mean? The PITI? Or PITI plus all other normal expenses (vacancy, excap, maintenance, management, etc.) How much are you actually cash flowing each month?

It sounds like you may be able to pull some equity from your present property - this would allow you to purchase another home, get rid of your monthly rent bill, while keeping the original property in the black and covered by rental income. Alternatively, you could also sell your present home, house-hack a duplex (or 3-4 unit) and again.....lose that monthly rent payment. 

None of us can actually answer your question without more numbers, but it sounds like you have some good options. 

 Yes, I have worked with her personally, and as I stated earlier - she really knows what she's talking about. Be aware that most of her "free" offerings (such as this 3 day webinar next week) will give you good info....but they are designed to encourage you to join her "inner circle" of investors. This inner circle is NOT free....and in fact, the price to join has risen substantially in the past couple of years, but it offers MANY advantages that are real and have created great opportunities for many investors who have the desire....but no knowledge or networks to get things going. She has over 25 "teams" operating around the U.S. that help investors buy properties out of state. These teams are made up of realtors, property managers, contractors, etc. and they allow investors to invest "out of state" in ways that would be difficult or impossible for the individual investor. 

I have not become an inner circle member but that is not because I don't believe it's good value....I am simply waiting until I have the capital to move quickly on specific properties. Hey.... at least check out her webinar next week for a taste of the possible!...and join their Facebook group for good networking.