All Forum Posts by: Tony SanFilippo

@Austin Steed

I agree with you and hope that your market takes off for you!  I just wish all investors would come read posts here, before they go spend their time and money on an education like that, when the education has been documented here on Bigger Pockets!  Cheers and best of luck on your next one.  The really good news, I am sure you will have next ones!

I don't understand why we investors buy without Minimum $500 positive cash flow and more if the location value will not double over the next 10 years (that is a 7% gain year after year).  @Austin Steed, Congrats for having the motivation to get in the game and I am sure you have learned a lot.  However, I think every new investor should look at this and think, what happens when the Furnace or hot water heater goes out.  If you don't have cash flow, it comes out of your pocket, hey even if you have cash flow it comes out of your pocket.  At your negative cash flow you not be able to make up for any expense.   Yes you may be able to increase rent in the future, but what about NOW?  Should we be losing money for taking a risk of appreciation?

What happens when the market takes a down turn?  Now you own more than the property is worth and have no cash flow.  This has happened in the past (2008) and helped the foreclosure boom.

As I see it investors like the example above are paying too much for property, we investors are accepting too low of a return on investment (time and/or our Money) for our risk.  It is not a get rich quick business, but new investors, don"t put your selves in a position to fail right out of the gate!  Deals are made in this business when you buy a property, not when you sell!

If we all played the game for a better return on investment, we would be getting houses a lot cheaper, instead making higher offers competing against each other or our selves.  Which puts us in higher risk position.  

Austin Steed

Austin Steed

Austin Steed

Congratulations!

I have a Sec. 8, in AZ, It has been a great rental.  They have been there 5 years., place looks great.  I have Mgt. i place, so I don't have to deal with much, but I know I have not failed an inspection, but it is a newer house that I remodeled.

I agree nice job, what town is it located?  Is it local to you?

@Nick B.

They will buy from you if they like you, if they don't have to deal with a broker, if the don't have to pay a broker commission, if they think you don't know as much and won't look at hard as a buyer that has a broker.  Just to name a few.  So Don't give up!

Congrats.  Make sure you have good cash flow and upside equity.  Values could have slow growth after this next election.

@Thomas Forsythe

Great write up and love the detail, this was a true learning experience for you and will prove to be invaluable.  You may try to get a line of equity on the property and you can then use that for future investment as well.  I have found lines of equity are best for short term investments like fix and flips, but while interest rates are low, the work for long term investments as well.  Keep up the good work.  

Sounds like you have a good skill set to do flips, but remember, you make your money when you buy the flip.  You have got to buy it right, or you could well loose money.

Cheers.

Great idea, neighbors can also help you in the buying process, they seem to love to tell you about the past owners, current tenants, other neighbors and about the neighborhood in general.  I love neighbors!

Good call.