Can I just say I am so glad Scott asked for the background story. I was already on my, here we go again interviewing another rich couple who always did everything right. Lol
This came at this perfect time for me! I'm hearing about all the people who have positive cash flow with their new real estate assets, but I'm not seeing it after accounting for capex and operating expenses.. This shows me that many real estate investors are not properly considering these costs. Bravo!
I don't know, sometimes I feel like they can be overly conservative. My Capex has been pretty low due to doing rehabs on the front end, and so have my maintenance, vacancy rates etc. We self manage though.
Great episode! Most importantly is the stress that that one or several rentals are causing you now. I had a rental similar situation figured it was paying for itself, just keep it since it was paid off,,,that was fine when I was younger, but now I'm 59 and that property once covid it was stressing me out, even thou it was still renting, and was continuing to go up in price. I finally realized that I had entered into a different stage in my life, and simply wanted more simplicity and freedom. The stress disappeared as soon as the property sold and money was in my bank,,I sleep well with cash in my bank, I love real estate, its a great "game", but you have to know when you need to get out as well!
They need to delete their current spreadsheets and get someone to do their income/expense sheets properly. Yes, I heard her say she’s a bookkeeper and CFO and I keep the position they need to get someone else to run their numbers.
This episode is fantastic. I would love to see more along these lines: in-depth breakdowns and examinations of real estate investing (especially how to evaluate things like whether specific properties remain worthwhile investments & how to make decisions about whether to invest in a property) within the context of overall personal finances and money management. Having an actual, real life example of someone who is more like the average early stage real estate investor (as opposed to someone with dozens of properties) was particularly helpful.
THIS WAS AWESOME!! I am about to start my investing journey and have learned so much key points from this interview!! Love this content please do more interviews like this!!!
This was a great episode. Thank you, Pam, for being vulnerable and breaking down the numbers and issues here. It's not easy. But it sure is useful for a beginner like me to understand the breakdown of capital expenses, maintenance, etc to see how to calculate the numbers to figure out if a property is worth it for my financial situation. Thank you!
New here! Brilliant the way this fellow manages to tease the actual info and figures out this lady. He wonderfully assessed her total picture and gave great advice...for her sake I hope she follows it...regards from 🏴
One of the best episodes I have ever watched on BiggerPockets. All in details and calculations . Most of the deals out there are all negative cash flow even if you put 50% down . I didn’t find any property with good positive cash flow since 2020 . So I didn’t buy any . And I don’t buy out of state , learned much lesson in 2008 .
Yeah, it sounds like they didn't budget enough for maintenance amongother things. I just try to keep a buffer of 2-5k per rental. If it's paid off, it can be around 2-3k.
Wow, I am surprised they only have that much in cash. We also feel like we are living paycheck to paycheck. I started an income and expenses sheet to see where the money is going. We'll have to make some changes in order to retire.
She and her husband are not managing this rental business effectively. They should go ahead and just sell out of all these rental properties and pay off all their debt while they still can. Next, move all that equity into dividend paying stocks and they'd be all set with less work, less stress, and less risk.
I would question the property management side. If you have owned some of these for almost 10 years and you aren't cashflowing that sounds very off to me. I have had one for about that long that cash flows about $600 a month. Not bragging, I just don't understand how you can't cashflow at that price point. Usually when I meet people who are losing money it is a management issue. That coming from a guy who's wife worked in property management for quite a few years.
Well no it is what you think it is as long as one has counted. Even thing is not accounted for but the more the rent cost the more money the owners, investors etc. have.
Without a spreadsheet analysis for each individual property, the guest has no idea how her properties are performing. I'm guessing their margins are tight in a market like Michigan ... doesn't take much to swing any one property from cash flow positive to negative ...
Rental property can be costly especially when you have a lot of loans. What I do is try and get enough studio apartments out of my property. Reinvest the profit I earn. I do over business that I earn money that is used for my personal expenses.
Can I just say I am so glad Scott asked for the background story. I was already on my, here we go again interviewing another rich couple who always did everything right. Lol
This came at this perfect time for me! I'm hearing about all the people who have positive cash flow with their new real estate assets, but I'm not seeing it after accounting for capex and operating expenses.. This shows me that many real estate investors are not properly considering these costs. Bravo!
I don't know, sometimes I feel like they can be overly conservative. My Capex has been pretty low due to doing rehabs on the front end, and so have my maintenance, vacancy rates etc. We self manage though.
Great episode! Most importantly is the stress that that one or several rentals are causing you now. I had a rental similar situation figured it was paying for itself, just keep it since it was paid off,,,that was fine when I was younger, but now I'm 59 and that property once covid it was stressing me out, even thou it was still renting, and was continuing to go up in price. I finally realized that I had entered into a different stage in my life, and simply wanted more simplicity and freedom. The stress disappeared as soon as the property sold and money was in my bank,,I sleep well with cash in my bank, I love real estate, its a great "game", but you have to know when you need to get out as well!
They need to delete their current spreadsheets and get someone to do their income/expense sheets properly. Yes, I heard her say she’s a bookkeeper and CFO and I keep the position they need to get someone else to run their numbers.
For a bookkeeper...shes sounds super unsure of her numbers. No wonder why they're living paycheck to paycheck or worse. Scott did a good breakdown
Very interesting. Yes, some people think cash flow is rent minus mortgage, but of course its more than that.
This episode is fantastic. I would love to see more along these lines: in-depth breakdowns and examinations of real estate investing (especially how to evaluate things like whether specific properties remain worthwhile investments & how to make decisions about whether to invest in a property) within the context of overall personal finances and money management. Having an actual, real life example of someone who is more like the average early stage real estate investor (as opposed to someone with dozens of properties) was particularly helpful.
THIS WAS AWESOME!! I am about to start my investing journey and have learned so much key points from this interview!! Love this content please do more interviews like this!!!
This was a great episode. Thank you, Pam, for being vulnerable and breaking down the numbers and issues here. It's not easy. But it sure is useful for a beginner like me to understand the breakdown of capital expenses, maintenance, etc to see how to calculate the numbers to figure out if a property is worth it for my financial situation.
Thank you!
New here! Brilliant the way this fellow manages to tease the actual info and figures out this lady. He wonderfully assessed her total picture and gave great advice...for her sake I hope she follows it...regards from 🏴
One of the best episodes I have ever watched on BiggerPockets. All in details and calculations . Most of the deals out there are all negative cash flow even if you put 50% down . I didn’t find any property with good positive cash flow since 2020 . So I didn’t buy any . And I don’t buy out of state , learned much lesson in 2008 .
What is your specific reason for not buying out of state?
Great show. Love hearing someone from a BP pod talk about realistic expenses and positive cashflow 💸
Scott did a great job getting to the meat of her finances
I always ask friends who own boats, if we should buy or rent a boat and they say rent. Boat = break out another thousand.
I learned so much in today's show.
This was super informative! Love digging into the numbers.
Yeah, it sounds like they didn't budget enough for maintenance amongother things. I just try to keep a buffer of 2-5k per rental. If it's paid off, it can be around 2-3k.
Would be cool to download before and after numbers and the analysis. To see.
Wow, I am surprised they only have that much in cash.
We also feel like we are living paycheck to paycheck. I started an income and expenses sheet to see where the money is going. We'll have to make some changes in order to retire.
Great episode. I have some rentals that are also negative cashflow. I need to get rid of them and reallocate my equity into something better.
She and her husband are not managing this rental business effectively. They should go ahead and just sell out of all these rental properties and pay off all their debt while they still can. Next, move all that equity into dividend paying stocks and they'd be all set with less work, less stress, and less risk.
Wtf horrible idea? This is a real estate channel
Wow, this was a very informative episode. I will r/a my rentals. Thanks
I would question the property management side. If you have owned some of these for almost 10 years and you aren't cashflowing that sounds very off to me. I have had one for about that long that cash flows about $600 a month. Not bragging, I just don't understand how you can't cashflow at that price point. Usually when I meet people who are losing money it is a management issue. That coming from a guy who's wife worked in property management for quite a few years.
Too much leverage at a very high cost. This is a situation in which one should never be in.
My wife won’t let us do loans for our rentals. Let me say that having $0 loans on 7 rentals makes things very simple.
Meaning you have 7 houses 🏡 paid off
Then you're a rich pos who isn't in need of any of this channels advice 🙄
Well no it is what you think it is as long as one has counted. Even thing is not accounted for but the more the rent cost the more money the owners, investors etc. have.
I can’t find any positive cash flow property in sacramento. Should I buy cheap house or nice 3 bed 2 bath house?
Bad area to look in if you're not already rich
@@jtowensbyiii6018 I’m not rich 😢
Without a spreadsheet analysis for each individual property, the guest has no idea how her properties are performing. I'm guessing their margins are tight in a market like Michigan ... doesn't take much to swing any one property from cash flow positive to negative ...
A CFO that doesn't know how to do a real cash flow statement. Hope she listens to the advice here as well as read some of the Biggerpockets books.
Great podcast! Keep up the good work!
I love investing in any asset that can grow and generate more income ...../.././
I like the lady because she's in the game.
Rental property can be costly especially when you have a lot of loans. What I do is try and get enough studio apartments out of my property. Reinvest the profit I earn. I do over business that I earn money that is used for my personal expenses.
Very interesting
If nothing else, pay off the 10% interest private money first.
Get rid of the dang boat! Problem solved lol
A boat will keep you broke
Making payments = paycheck to paycheck
What a mess - the beginning list. It’s like spaghetti.
Now I know why I don't watch this show anymore. Her
Scott is way to young to be losing that much hair.
But he has really nice mic 🎙
Hey now... be nice :(
@@scotttrench4169 You have a full head of hair, bro! Don’t worry