All Forum Posts by: Lane Kawaoka

Jerry Budzinski My rentals in Seattle were cash flowing each with 600-800 a month but it was because I bought at the right time. However you need to look at the Return of deployable equity. Cashflow as a measure I was good but I was making like 5 percent on my equity. I tell you it drives me crazy when unsophisticated investors say "the Cashflow is good". NO What are the numbers and metrics. Now each rental I get typical cash flows by 400 but I think of it like 250 to be conservative and more importantly my money is not being lazy. I think if your making less than 8 percent your better off in the stock market because of the risk with liability and cap ex.

Mimi H. Since it's the weekend I'll get my word in before monday when the SDIRA JOB get on here. They will tell you all about it but the terms on the Non recourse loans are not very good. 6-8% interest rate and 30-50% down payment 😕 It's best to use for notes or as a passive syndication not when using leverage. Plus you will get so many different answers regarding UDFI Tax.

@Lesley Resnick

I want cashflow and high appreciation. Also I want nice counter tops and a 3 car garage and 10 cap. K Thanks.

Any input on how to get your PM to get your tenant signed up for lease option for a win-win exit strategy?

Here is a generic letter to send to the PM:

Hi property manager,
With the summer coming up and rent up season approaching I was wondering if you would be able to ask every one of my tenants if they were interested in purchasing the home via lease option.

Here is an idea on how to have a conversation about the proposition.

1) Praise the tenant for a good track record. And let them know we are looking to create a win-win situation.
2) Ask if they would like to own their own home one day. This also provides us information on if we need to plan for vacancy.
3) Present the lease option deal idea, if the rent is 1000, ask to raise the price to 1100 (+100) and 50 dollars goes to a deposit account and 50 goes as a fee as a deposit. We can work on the exact contract with a lawyer.This is offer is not for everyone but is ideal for someone who has recovering from bankruptcy and/or has a credit score improving. Once they are signed on with the lease option this should greatly eliminate service calls making your job easier. Also when we sell you will be the agent on record on can have the commission$.

Please report back on the following within the next month:
123 Main Street:
1) Interested in buying this home? if not why/when? any issues with current living conditions?
2) What are their barriers to a lease option? (credit score, job/location stability)

https://www.biggerpockets.com/blogs/7810/49213-cap-ex-assumptions-and-rule-of-thumbs

@Max James

I just wrote this with some cool charts on life expectancy of items.  As always with a grain of salt.

Joking aside maybe we should have moderated posts so the community does not have to rehash and re invest the wheel every 9 days for a lot of these.

If you have equity then you have choices. 1) sell your property and rent. In west coast markets and especially in HI you can command much more property than you can buying. 1a) use that money to buy rentals out of state where numbers make sense 1b) do your active investing activities such as rehabbing flipping. 2) get a Heloc and do 1a and 1b If you don't like any of these answers or not willing to do it then you need to make some concessions in life.

I'm old at 30 and now have 11 SFH in Birmingham, Atlanta, Indianapolis that I bought pretty much turnkey. Looking at stepping up to big kid investments with apartments as a passive and then a lead once I have my KP status. Dave Lamattina

I filled in the pool so Fannie Mae would loan on the home