All Forum Posts by: Troy Forney

If you are selling to an owner occupied buyer, then yes.  Of course that depends our your tenant.  Some are not the cleanest or not willing to accommodate, and my be difficult to show the property.  From a buyers perspective, I never minded buying a property with a tenant already occupying the property.  If they don't meet our standards we just don't renew them.  

Ya already checked into that. Single family only.  Maybe low income housing? Anyone no about opportunities with that?  Just outside of an opportunity zone so no go on that. 

Hi Scott thank you for the quick response.   Don't think the area would support 200k for the home I described.  I just meant the highest sales in the market are about 200K There are no new construction comps in the immediate area, but a few in the city of Lake Station.  With a garage they go for about 190k to 200k.  So there goes the profit.  Any other suggestions?  

I have inherited two lots that were my Great Grand Fathers.   They are probably a C- area Lake Station, IN just outside Gary, IN.  They are zoned residential and need to be cleared as they have been untouched in 50 years.  We do own 1 property near here we bought for.  Area supports up to around 200k for best homes.  I would like everyone's opinion on what the best option would be.  I would like to keep them, since they have been for roughly 100 years, but not the best area.  Income would be ideal.  We can clear the land and sell the lots, worth about 10k each.  Building a 1000 sf home 3/1.5 on a crawl and no garage can be done for about 120-130k.  Rent would be 1400 to 1500 a month conservatively.  Thought about trying to find a used manufactured home and bringing it over there.  New modular also an option.  I would have to hold a mortgage on all of these options.  Any suggestions would be appreciated.  

I can’t justify putting money back into a 401k, but keep hoping someone will try to convince me. No one is taking the bait.  

Not necessarily expecting a crash. Although, I have seen more unethical and illegal situations in this market than any other over the past 20 years.  Just trying to justify putting money into 401k or other investment when Real Estate has been so good to us. 
Leveraging is about 50% Ltd and I have reserves so I feel pretty secure. Our management company does a great job of finding the best tenants. 

We had one rental at that time. We had a little bit higher turn over and rents did not increase maybe went down a hair. Is this consensus for most of you that had rentals then. I ask as I am analyzing the risks of having 100% of my net worth and passive income in real estate. Thanks in advance.

Nathan congratulations that is quite a rise to fortune. I wish it was easier to talk about. Some people will tell you everything and others get upset when you even try to discuss money. My wife and I have recently hit a milestone net worth due to our Real Estate investments. Even though it’s not that big of a deal, it kind of is. I feel like I have made it and yes, if prices drop so will our net worth.  I have tried to stay humble over the years, but lately it’s hard. As our income increases from our properties and my business, I get numb to dollar amounts and start thinking oh xxxx amount of dollars is nothing. I have told very few people and feel like an axx hole for telling them. Yet I am proud and want to shout out success from the roof tops. I know that being humble is always best. Staying frugal also gets harder. Lately even discussing money with my parents and my wife seems uncomfortable. So for me I will try to forget about it and keep it all in my head. Try not to let any spill out my mouth.

I wanted to take some time to tell my story to BiggerPockets about BiggerPockets. Around 2014 I was considering buying the last remaining parter out of a single family home rental that we had owned since 2007.  Like many people we decided to flip a house and got caught in the crash. So three of us owned a single family home. We had owned a few other properties over the years and had sold them with modest profits. My wife and I had been putting a lot of money into our retirement plans and I was very disappointed in the 7% we were averaging. You might say I was looking for “answers”. 

I did an appraisal for a guy name Jim Carlson. He had said this was a rental property and I told him I was considering getting into real estate investing more. He proceeded for the next 45 minutes during the inspection, about how he acquired 40 plus properties. He would explain and say then we used to BRRR method or debt snowball to pay them down. He would say you know what that is?? I would so no. How about the 50% rule or the 2% rule, 70% or 1% rule. I would say no. He said, you have to know what you are doing if your going to invest. Go to BiggerPockets and learn. By the way I used to be a moderator for BiggerPockets. I then preceded to buy houses like crazy over the next few years. We now have 4 sfrs and 2 duplexes that are cash flowing well with less than 50% LTV. We sold 3 as flips that were not going to rent for enough in my eyes. Looking back I wish I would have kept them. During the acquisition I would remember our conversation and play it back in my head and looking up terms and rules on BiggerPockets.

Looking back at that meeting of Jim it was like the universe was definitely telling me something. It was really a turning point in my investing career. I can’t thank Jim enough. I have left him a couple messages over the years thanking him and telling him of my progress. I feel truly blessed to have Jim that day and learning of BiggerPockets.  Thank you both for changing our lives!