All Forum Posts by: Brad Clarizio

 @Joel- what you just said is such a simple idea, but has been eye opening for me. I think I'm over complicating all of this. I need to find out what I have to make, get there, and then make my decision. I love your thought about finding something in RE. Obviously, that's my passion, so why not pursue it? Thanks for the sound advice! 

Hey Sean...thanks for the perspective. I guess for me, I'm reaching my ropes on the corporate world faster than I ever intended. I could definitely leverage my equity without selling, which is likely what I'll do, but depending on what path I take it will cut my margins down so far and increase the risk too much. For example, I have a house I paid 69k for, put 17k down and at this point owe almost exactly 50k. It's worth 110k, but if I took out 40k in equity, that payment+mortgage would be so close to the rent it would be dangerous, and I'd be under water if I ever went 1-2 months without a tenant. I just have to be careful not to over leverage. Also, one of my properties is residential but was rezoned as commercial if it ever burnt down, so I'm not able to take any equity out unless I'm doing a commercial loan. 

I am meeting today with a Franchise owner of a daycare...it would require me to sell all of my rentals. However, I would own the land and building that I'd be erecting for the daycare, which is nearly $1M in value. At this point, I'm undecided where I'll land. I just know I have land somewhere other than where I am now...soon. 

Hey Sean...thanks for the perspective. I guess for me, I'm reaching my ropes on the corporate world faster than I ever intended. I could definitely leverage my equity without selling, which is likely what I'll do, but depending on what path I take it will cut my margins down so far and increase the risk too much. For example, I have a house I paid 69k for, put 17k down and at this point owe almost exactly 50k. It's worth 110k, but if I took out 40k in equity, that payment+mortgage would be so close to the rent it would be dangerous, and I'd be under water if I ever went 1-2 months without a tenant. I just have to be careful not to over leverage. Also, one of my properties is residential but was rezoned as commercial, so I'm not able to take any equity out unless I'm doing a commercial loan. 

I am meeting today with a Franchise owner of a daycare...it would require me to sell all of my rentals. However, I would own the land and building that I'd be erecting for the daycare, which is nearly $1M in value. At this point, I'm undecided where I'll land. I just know I have land somewhere other than where I am now...soon. 

I'd love to hear others thoughts on this!

@John Horner

I'd love to meet up. I've been successful on my current path, but my mind doesn't stop when it comes to taking a step forward...and a big step at that. 

I'll send you a PM. 

@Allen Fletcher

Thanks for the quick reply. Truthfully, I haven't went too far down the rabbit hole of PM, so I'm unsure if they would still be profitable. My net cashflow is about 50% of gross income, so they are "cash cows" when it comes to RE.  The biggest thing I see with having someone manage them is that most of the time, they don't require a whole lot- but when it rains, it storms. I just have it in my mind that 90% of the time I can do it and 10% I can't, yet having them managed is 100% cost. 

The other thing is, and I have to be cautious because I'm on a public forum- I don't LOVE my profession anymore, I'm kind of getting burned out. That's why I see RE as a way out, and truthfully, can't stop thinking about how to make it my FT job. 

And you're right- it is a good problem to have. :) 

Hi everyone,

I sat down yesterday to do my rental accounting for May, and I can't help but think the business model I've been following is scaleable, so I'm looking for guidance on taking my business to the next level (or not?).

Currently, I own 7 units in Columbus, OH  that I self manage while working a full time, long hour, relatively stressful job. No kids now, but I know that when my wife and I do, I'll come to a crossroads on my business vs. my job (likely sometime soon). All 7 of my units are profitable, and I'm currently sitting on around 300k in equity between the 7 houses (I've invested well and at the right time in Columbus). I've thought about the following:

1. Sell all 7, take the ~250k after expenses and do a 1031 exchange to use as a down payment on a 20+ unit apartment complex (~1M or so)- this option would bring my career decision making process quicker. 
2. Take on a partner- I've heard positives and negatives with this approach, and I'd be EXTREMELY cautious on who I took on, but I know that at some point, I can only take this beast so far. 
3. Do nothing- continue my existing model by acquiring 2 properties every 12 month period, knowing that I'll soon have to switch to having the properties managed as my career grows.
   

My ultimate goal is for RE to be my only career, however for now, I'm able to manage both. Although, certain days/weeks, it's been a bit too much and I know it's not sustainable. 

I feel as if I'm to the point where I'm no longer a beginner (I'm 26 but started at 21), but I'm not yet an expert. From a financial perspective, I'm doing well but I'm having an internal battle with what I WANT to do vs. what I feel like I should do. I want to do RE full time, so looking for guidance on what has worked for you on making that jump. Shameless plug: I'd love a mentor. 

Thank you,

Brad

Most of my properties are 2x expected expenses. So a mortgage of $400 a month, with tax and insurance, usually tents for $800. I have 3 in my portfolio that meet that criteria. Now others that don't have a mortgage are obviously different. Tax and insurance is around $150 a month and they rent for around 4x that number. 

It's old town east. Good area to be targeting and good luck, the big fish already have their eyes on it.

Currently have 8, all self managed. I have a contractor do rehab and major repair, but I handle things like leaks, bug remediation, etc. 

I'm thinking at 15 it's time to make a decision- do this as my full time career or hire a PM.