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Old 10-20-2016, 08:00 AM
 
33,046 posts, read 22,039,041 times
Reputation: 8970

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Quote:
Originally Posted by N.Cal View Post
Who would want to live anywhere like this? No way.

And your entire post sounds like an advert.

There are millions and millions of rent slaves who will gladly pay the exorbitant rent. Or maybe not gladly, but as slaves they will pay one way or another.

 
Old 10-20-2016, 08:01 AM
 
Location: new york
27 posts, read 11,959 times
Reputation: 14
Quote:
Originally Posted by flyonpa View Post
I noticed there is No Health Insurance (Guess it with his F/T job, or thru his parents? still?) $500/month + Deductible reserve fund of $2K?
If he is doing this F/T he now need to think about his Retirement, Disability, ~20% of Gross.

Vacant Fund: Where is the Replacement dollars for when the unit(s) are vacant and not generating income. I would assume 3-5% Each Unit vacant 1 month out of each 36months + Cost to remarket unit, Utilities for that month, New Paint, New Carpet.


Capital Replacement Funds: New Roofs? Heating Systems? Hot water Heaters? Appliances, 10/15 year Kitchen/Bathroom remodels?
You are correct, he does still have insurance through his parents so that is an additional cost.

What he is doing is putting all income from rents and paycheck into a bank account. Slowly building over time he will use the money for down payments and rehab when a unit needs it. This is not the correct way of handling this.

The vacant fund is a great point. In my APOD spreadsheet i have maintenance and repairs as separate line items both being deducted as an expense. These deductions include the cost to remarket, utilites for the vacant month, and the cost to rehab.
 
Old 10-20-2016, 08:02 AM
 
33,046 posts, read 22,039,041 times
Reputation: 8970
Quote:
Originally Posted by IncomeSimplified View Post
Bingo! That is the plan. I am 22 now and plan on purchasing a 4-plex within a couple months to start off. Hopefully everything goes as planned

Have you ever considered getting a job and being a productive member of society, instead of living off the toil of rent slaves?
 
Old 10-20-2016, 08:04 AM
 
14,257 posts, read 23,974,521 times
Reputation: 20048
Quote:
Originally Posted by Slytrix View Post
Retired sure

I agree with you.

I have a brother-in-law with 200+ rental units. I do not think that he considers himself retired at all. Even if you contract out the management and the maintenance (and the profits), real estate requires a lot of work keeping the units occupied.

Only a 22 year old with no experience in real estate would underestimate the effort required to own real estate profitably.
 
Old 10-20-2016, 08:05 AM
 
Location: MMU->ABE->ATL->ASH
9,123 posts, read 17,125,688 times
Reputation: 9979
100% occupancy....

Just wait till one of them loses their 2nd job, gets sick, has sick kid, and can't pay the rent. Start the eviction process. Months of No Rent, If the tenant is good at it they can drag it out 6-9 months, Maybe a year.

No Income from the unit, Court Fees, Process Fees, Legal Fees.. When you get them out the unit will need a total renovation and clean out.
 
Old 10-20-2016, 08:09 AM
 
Location: Sugarmill Woods , FL
6,235 posts, read 5,894,156 times
Reputation: 13647
Quote:
Originally Posted by IncomeSimplified View Post
Who would want to live like what...?
An advertisement for what?
This method wouldnt work for you anyway. You seem lazy and quick to jump to conclusions.



Taxes, maintenance and repairs are all expenses, bud. 100% occupancy.
But Wait, there's more, if you act now...........
 
Old 10-20-2016, 08:20 AM
 
33,046 posts, read 22,039,041 times
Reputation: 8970
Quote:
Originally Posted by froglipz View Post
But Wait, there's more, if you act now...........


ever notice that when people encourage you to "take action" it always involves money out of your pocket and into theirs?
 
Old 10-20-2016, 08:59 AM
 
Location: Idaho
4,621 posts, read 4,458,547 times
Reputation: 9035
[mod note: Thread closed. More appropriate to the real estate/landlord/financial/investing forum]


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