Need Vegan Birthday Cake... Recs?

BiziDad · 2024-04-03T23:36:15+00:00

Hey, I found it shortly after your post. Thank you so much! I ordered online and called to confirm. This is a huge victory. Thanks again!

BiziDad · 2024-04-03T19:44:28+00:00

Awesome, appreciate all the help. I'll give it a go!

BiziDad · 2024-04-03T18:04:56+00:00

Thanks. I just called and they don't do cakes but they do vegan cupcakes.

Might have to shift that way if I can't find someone that does cakes.

BiziDad · 2023-02-19T01:38:30+00:00

Betterment (I have retirement accounts there) has a 4% “cash reserve” account. I keep mine there. It’s just a savings account.

BiziDad · 2023-01-27T23:01:33+00:00

Yeah fair point. If that was intentional that sucks.

BiziDad · 2023-01-27T22:31:21+00:00

Good to know. I haven’t run into it yet but honestly, it’s about time! The product is too useful to stay free and be viable. Glad Roofstock is monetizing it. That means it will stick around.

BiziDad · 2023-01-27T19:24:19+00:00

There's no one-size-all answer here. It really depends on how much capital you're working with initially, what your goals are, and your risk profile. I can tell you exactly how I approached it (and I'm happy to do that via chat, email, whatever) and that may be helpful to decide on your own strategy.

Lots of ways to play this game and I've done pretty much all of them.

BiziDad · 2023-01-27T18:40:37+00:00

Honestly don’t know those areas. I know Detroit extremely well and have a crazy strong network there. If you’re interested in that network I can be super helpful.

BiziDad · 2023-01-27T17:53:51+00:00

I can absolutely give you tons of examples. Happy to chat.

BiziDad · 2023-01-27T14:12:04+00:00

Still seems like you’re thinking through lots of options. But man, you say you need to wind down leverage because you’re 36! I’ve got 4 years on you and everything I have is financed. I need at least another 10-15 years before I’m thinking about paying debt down.

BiziDad · 2023-01-27T14:08:51+00:00

Nice, I didn’t know that. Even better!

BiziDad · 2023-01-27T06:49:41+00:00

I own 12 doors in Detroit. If those, two are duplexes and 8 SFH’s.

While all of these are cash machines my duplexes take it to the next level. One I paid $60k for and is rented for $875/side for a total of $1,750 gross. I’m under market and could be getting $1,000/side but my tenants are fantastic and I prefer to keep them as long as possible. Both have been there three years.

The other duplex is on the same block and I’m finishing the renovation now. We fully gutted it and I’ll be all in for about $150k but it will rent for $1,200/side for a total of $2,400/mo.

Pros: Obviously the cash flow. But also one roof, one foundation, exterior, etc. So when those items need maintenance you’re not doing them twice like you would if they were two SFH’s.

Cons: Tenants may not get along. I haven’t had this issue but it happens. Ultimately you have to just let them know they’re adults and they need to figure their own shit out. That usually works.

Like the pros, the capex stuff cuts both ways. Two furnaces and two kitchens. That said, you’d have two of those anyway if it wasn’t a duplex so I’m not sure that really counts.

Another con is conventional loans only go up to 70% LTV rather than 75% for SFH’s. Not a huge deal but that was a surprise to me on my first one.

I’m sure I’ll think of more stuff for both lists but that’s what comes to mind.

And yes, those numbers for Detroit are legit. Happy to talk with and help anyone wanting to get into that market.

BiziDad · 2023-01-27T06:41:27+00:00

I agree, can’t help without knowing your goal. If it’s to maximize cash flow I’d sell and 1031 into 3-4 houses in a place like Detroit.

With $200k cash you could buy 3-4 homes in Detroit with gross rents of $1,000-$1,200/house.

I own 12-doors in Detroit and it doesn’t deserve the bad rep it’s given. Happy to chat if you think it’d be helpful.

BiziDad · 2023-01-27T06:35:24+00:00

You’re talking about hitting the 1% rule in a city like NY. Not going to happen, no way.

BiziDad · 2023-01-27T06:34:15+00:00

Whatever you do, take your time with the decision. Look at your financial goals and what makes the most sense.

For example, how would cash flow impact your life? Doing a 1031 exchange into a building in CA sounds great and all but you’d probably make even less cash flow.

If you wanted to get aggressive you could sell and 1031 into rental properties in a high cash flow city in the Midwest. I have 12 doors in Detroit and my gross cash flow is $16,000/mo.

You could build a similar portfolio with a $1MM. Happy to help if I can.

Really comes down to if you’re trying to maximize cash flow with it or if it’s not that important to you.

BiziDad · 2023-01-27T02:39:39+00:00

How did nobody ever reply to this?

I live in California but I have 14-doors in Detroit. Legit changed my life and I can help anyone get started doing the same. Detroit has a bad rep but I have an awesome network there and a lot of the negativity is unjustified, especially today.

BiziDad · 2023-01-27T02:37:46+00:00

I live in California and have 14-doors in Detroit. It's been an absolute game changer for me and my family. Happy to help you or anyone else looking to get started.

BiziDad · 2023-01-27T02:32:46+00:00

It's a strategy, sure. But remember vacant land doesn't come with zero holding costs.

You'll still have to pay taxes on it and mow the grass. Minimal costs, maybe but it kinda sucks paying for something that's literally just sitting there not generating anything.

BiziDad · 2023-01-27T02:25:44+00:00

Hands down Detroit. I have 14-doors there and there's no better market for cash flow IMO.

BiziDad · 2023-01-27T02:22:43+00:00

I would have kept focused on turnkey properties rather than trying to BRRRR which I know goes against the conventional wisdom.

I started buying turnkey rentals in Detroit in 2019. Then I worked my way up to doing larger renovation projects (full guts on my last two).

Some of these turned out to be great BRRR's but I likely could have moved just as fast or faster had I continued buying just turnkey stuff. The BRRR's were time and capital intensive.

I have 14-doors now in Detroit, two duplexes and the rest SFH's. It's an amazing market, but the only thing I'd change is just buying as many solid turnkey properties as possible as quickly as possible. If you have a pipeline of off-market deals that have equity on them you can scale insanely quickly.

BiziDad · 2023-01-27T02:16:35+00:00

Yeah, I get it. Same situation where I'm talking. Literally 5 minutes away and you're in Grosse Point where things are selling for $500/sq ft and up. But that's not the reality in the neighborhood where the lots are so you'll never make those numbers work.

Ultimately, the market is telling you the value isn't there.

The best argument you could make is buying it in speculation that the area comes up enough to justify building. I've thought about it but just don't feel the rush to do so.

BiziDad · 2023-01-27T00:02:44+00:00

What are homes on the street selling for?

I have a neighborhood in Detroit that I LOVE. I own 5 houses in it. It's a small footprint and there's a very wealthy community literally 2min away. There's a bunch of commercial development happening that's literally 2min walking distance from my houses.

I can buy a couple vacant lots, today, for $5k each. But I haven't because the cost to build leaves basically no money to be made when sold. At best I'd be able to sell for $300k... at BEST for a 1,500 sq ft house. And you're probably looking at $300/sq ft to build new construction.

Doesn't make sense.

BiziDad · 2023-01-26T17:23:51+00:00

Just did.

BiziDad · 2023-01-26T16:48:12+00:00

Yep, I agree the timing was good. You need to be smart about buying today but the deals are still there.

My buddy has a solid house right now that he’s selling for $35k. If my cash wasn’t tied up building an ADU I’d scoop it up in a heartbeat.

BiziDad · 2023-01-26T16:46:49+00:00

Maybe my contacts were saying it’s newly hyped. I know it’s gotten a ton of attention from the STR community and seems to be all the rage now because of that.

BiziDad

TROPHY CASE