All Forum Posts by: Account Closed

@Eric C. Interesting. I'd never sleep at night with only 1 month PITI cash on hand but to each their own. I've seen 6 months suggested several times now but Phoenix is soooo mercurial that even that scares me.

Most of my criticism comes when people read that I’m carrying $900k in debt and currently renting a room from a friend for $500/month. 😂

Out of curiosity, what is your strategy on leverage?

@Josue Vargas why? Is your lawyer a real estate millionaire? I’d prefer to get advice from people who have walked through the same fires.

@Cory Binsfield thank you. I am skeptical of lines of credit for the exact reason you mentioned.

All of my loans are 30 year conventional up to this point. I'm not trying to take advantage of the FHA rules, but was pointing out that it is an option on the next quad if need be.

I'm curious why you'd deem this strategy a house of cards though. Sure, I'm taking on high leverage but from my perspective having the cash reserves to carry PITI through 24 months at 100% vacancy is the exact opposite. At 50% occupancy or 50% rent crater I'd still be able to carry all 3 investments for four years. That's why I'm here though...to watch others poke holes in my strategy so that I can correct course! Do your worst!! Seriously though, I appreciate the critique.

@Cara Lonsdale great advice and info on the lender requirements. I have a background in data modeling and analytics so I’m keyed in on several fluctuating metrics. I am always receptive of the lessons others have learned! Appreciate the ideas!

@Mohammad Nur interesting. I’ve never heard of that for a primary, but have encountered it for a secondary home. Have you looked into private lending or seller carryback to finance yours? Just curious to see what kind of experience people are having in those markets.

@Mohammad Nur to the best of my knowledge as long as my debt to income ratios are in line I'm still eligible for one FHA loan as my primary residence which would allow me to put down even less. Keep in mind all my current loans are conventional.

@Fred Cannon 😂 thanks Fred. I won’t be giving up my day job any time soon. If I were headed that direction I’d be MUCH more concerned with immediate cash flow. Always great to hear how others approach it. Dependent on appreciation I certainly hope to be trading up to MF in the next 5-10 years. For now I’m just trying to gauge what kind of reserves others carry to absorb the ebs and flows.

@Andrew Syrios that was my thinking as well, $100k at minimum. My next step (hopefully 6 month from now) will be to buy a $600k quadplex with 5% down and live in one of the units for a year. Any thoughts on where I should be in reserves before making that leap? Keep in mind that my target property would be one where once I leave after that 1st year I’m able to cash flow $100/door fully leased up.

@Phil Denton having someone in the market who knows its inner workings inside and out is CRITICAL. I can’t stress this enough when you are getting started. I have practiced extreme humility as I’ve gotten things going and asked for help/suggestions from anyone and everyone...with the understanding that I weigh more heavily the opinions of those who have successfully done what they are proposing.

@Theresa Harris I have 3 Class A- homes that are fairly new/well maintained. I expect capex of $6k per year for the next 5 years. Purchased at $300k, $300k, $400k respectively. Any thoughts on reserves to carry the existing portfolio safely?