Comments on: How 15 Rent Houses Can Retire You Faster than a $1 Million 401k

By: John Ryan

John Ryan — Wed, 25 Apr 2012 19:34:45 +0000

Yeah, I agree with you as I have had rentals in the DFW area for 30 yrs – it’s basically a forced savings account that you have to manage and devote time to. But, if you stick it out at the end of 30 yrs you will own something :)

By: John Ryan

John Ryan — Wed, 25 Apr 2012 19:30:43 +0000

The example is a little over-simplified. First, you cannot borrow/re-finance a home you bought as a rental as no bank nowdays will lend you money on a rental. When you get loans, there are points, closing costs, etc that can amount to over $2500 in fees etc. per home. In addition, if you have 15 homes, you will not be able to retire because you will be working to keep them up / rented / in service full time. Accounting for vacancies, large expenditures (at least one per year with that many houses), you will not get the cash flow expected – especially with mortages on all those properties.

I recommend purchasing foreclosed/under market properties (maybe one or two at first) using home equity loan and 401k loan (low interest) and paying cash (so the homes should be $50k or less apiece). Rent them and pay off the loans asap before purchasing others using the same technique. The goal is to PAY OFF THE MORTGAGE asap so that you actually own the properties. Do as much work/management as you can without hiring others. It’s a good learning experience and saves you money.

By: Jim

Jim — Tue, 20 Dec 2011 22:03:36 +0000

I have two questions.
How do you find tenants and how do you screen them? I own two rental houses and I had to use MLS to find tenants and I the listing fee is one month rent. So, I am getting only 11 month of rent and it just covers mortgage+insurance+tax. I tried to list the house by myself and no luck in getting tenants.
Can I take “Equity loan” from rental property? or I have to refinance?
Refinance normally costs $2K or more.
Also, if you don’t have 20% down you end up paying “mortgage insurance” which is expensive…

By: dfw

dfw — Tue, 29 Nov 2011 04:23:50 +0000

dont know if i am missing something, but the property value in the DFW area does not appreciate and same thing for rent. it does not increasing as above stated article.

By: Ben

Ben — Sun, 13 Nov 2011 04:51:31 +0000

agree with you completely.

By: Ben

Ben — Sun, 13 Nov 2011 04:46:03 +0000

I have 6 rental properties and I don’t know how to buy more because all the bankers said I cant get anymore loans. With the house market keep going down since 2006, it is almost impossible to get home equities out as value keep dropping. I don’t see how it is possible to buy 15 rental properties with $25k in 5 years. Maybe i am a different area than most of you guys, I am in Los Angeles area. By the way, I’ve bought all 6 units in the last 18 months. Bankers required min of 25% (my out of pocket now is about $250k) down payment for investment properties. Are you guys really able to get so many properties with so little down or almost nothing down? $5k barely covers the closing cost in my experience. This article is very motivated, but doesnt apply to current market condition anymore, maybe this was true back in 2001-2007. Maybe I am wrong, but this is only base on my experience. Really? $25k gets 15 units in 5 years? Is $25k even enough for closing cost?

By: Gabriel Boudreau

Gabriel Boudreau — Sun, 25 Sep 2011 21:34:51 +0000

After reading this article, I think my life may have changed, forever. I am a commercial truck driver for a large company but I want to be home with my family more. I recently came home from OEF Afghanistan as a soldier and I have been doing my best to pay the bills.

I have $20K-$40K saved from the deployment and my own savings plan from my weekly paycheck. My wife works but she is pregnant and will be home with the baby over the next few months. I want to put this money to work.

I read that you need 25K for 15 homes but that is if you know what is going on. I am basically a noobie. I live in a rented house with my wife.

I know there are wealthy folks making $$$ from real estate. A soldier I met in 2010 was closing on an apartment duplex in Las Vegas when we were training together. He kept asking for time off to use the phone so I asked him why and it was a $3-$4 Million dollar deal that was going down.

I know it works, I just don’t know where to start, but I think that may have changed….today.

Thank you.
SGT Boudreau
OEF X-XI

By: Anna Lisa Ramos

Anna Lisa Ramos — Fri, 23 Sep 2011 19:27:21 +0000

Hi I am very interested in how you handle your investments, how you started, any help will be so greatly appreciated. I live in Amarillo Tx and me and my partner want to start working on investment properties and well we need all the help to get going, thanks & God Bless!
Anna Lisa Ramos

By: Mike Cannetti

Mike Cannetti — Wed, 20 Jul 2011 21:14:30 +0000

I would like to go into some details with you when you have a chance.

By: Jerry Gurley

Jerry Gurley — Tue, 05 Jul 2011 15:40:56 +0000

Mike;

Would love to pick your brain regarding MHPs. They seem like a great opportunity. Would buy your lunch one time if you have time.

Thanks
Jerry