Flipping vs Renting Houses

[@freedom_mentor]

Every successful real estate investor has a mentor. Get your mentor here: www.freedommentor.com/apprentice

[@cristelahopkins447]

Exactly! I never could understand wanting to deal with tenants and constant upkeep to make in a decade what a house flipper could make in a single transaction. I see comments about flipping being more work. I guess I just don't understand the hyperphobic terror over a little sweat and effort. I actually enjoy fixing up houses, and would much rather make $100 actively than $20 passively.

[@wallyjohnson4971]

Phil: I SWAN (sleep well at night). I own many SFH and Duplexes. Have for over 25 years. I am retired with a net rental income in the six figure range. I am a multimillionaire. The times I have been to eviction court I can count on one hand (eviction court boils down to how well you do screening of prospective tenants). I use property management companies to run the operation. Headaches are non existent. My wife and I travel to Europe on a yearly basis (trips paid for by tenants). My children will inherit a money making operation that will produce a comfortable lifestyle for them. My buy and hold strategy has worked very well for us. Flipping is a job. A tread mill I care not to get on. Just my two cents. PS: I do enjoy your channel.

[@freedom_mentor]

I appreciate your comment. Thanks for sharing. But while that sounds good, one could argue that it proves my point. After having owned those properties for 25 years, you only are generating in the six figure range with yearly net cashflow? It could be concluded that your extremely low net cashflow (in relation to the real estate you own) is the result of not owning high return on investment properties. They are paying your bills, but not ultra-high octane money making machines. You're losing all kinds of economies of scale too; whereas if you were to renovate and resell each one of those, especially if you could do them in clumps and 1031 exchange the money into some higher return on investment deals, you could easily be at seven figures income with the same "SWAN" experience. to each his own, but it sounds to me like you have sold yourself a little short by having so many single family home traditional rentals.

[@heribertoiribe896]

if you need the money you don't need to get a cash out refi. you can get a revolving line of credit at 5% currently an buy another property with 20% down. cash flow will keep coming. separate the taxes an insurance from principal an interest. So all your income an rent money is going to pay down the line of credit an when taxes an insurance are do just pay them with the line of credit. that's how money works for me an its not sitting in escrow. I have 5 properties an has work out for me at a young age. @@freedom_mentor

[@heribertoiribe896]

for people that don't know what a revolving line of credit is, even do the rate is higher you pay less because is simple interest. you pay much more with your 30 year Amortization schedule.

[@ARrights]

Heriberto Iribe Mind blown.

[@tomlaureys1734]

You are right Phil, Wally Johnson could do it your way and have a seven figures annual income. But why do all that flipping and have all the headaches and all the work? I think I prefer to do it Wally Johnson's way because six figures is plenty of income for the way I want to live. I don't need a 7 figure income.

[@Dud-in9iu]

Phil taught me everything I know about REI. I met him in person and he is a genuine guy. He's one of the smartest people in general I've ever met plus he has integrity which is extremely rare these days. Either way it's possible to make a good income it just depends if you want a high paying job through active Investing or passive income. Both are profitable options.

[@anamericanentrepreneur]

Dud 2000 I think Phil is the real deal-not a fake like some of the others guys 👍😀

[@ethanshenk6468]

dude.... you are so freaking good at talking. i cant explain it but ive never heard anyone speak the way you do, its awesome.

[@scottyb1637]

I screamed when you said "If you bought a house in 2012, you bought at literally the perfect time in American history". I bought my house in February 2012. My house is worth DOUBLE in just 7 years. WISH I would have bought more. You have a new subscriber!

[@freedom_mentor]

Congratulations! You may not see that ever again in your lifetime.

[@jamesallenrealestate]

I have to say I prefer rentals. Minimal stress, minimal work, and taxed better. There's nothing quite like passive income!

[@freedom_mentor]

Some rentals are just as much, if not, more work and stress than flipping...they're called traditional single family home rentals :)

[@jamesallenrealestate]

Eh, I think it depends. If you're talking D class neighborhoods, I'm with you. But it's hard to argue an A, B, or even C grade single family rental is just as much work as a flip.

[@mammothorbust]

I agree. Especially when you have a property management company who takes care of everything including the repairs. I do that and it's made my real estate investing truly passive. If flipping was your full-time job then that's great, but if you have a full-time job, a family, and invest in real estate on the side then flipping houses regularly would be too overwhelming.

[@jamesallenrealestate]

Exactly!

[@freedom_mentor]

I'll put together a video soon that shows how much automation one can do with house flipping and how little work it can be. @@jamesallenrealestate

[@pbong215]

Thank you Murr from impractical jokers for teaching me Real Estate

[@hirra23]

I honestly love this guy... hes literally my mentor.. all his videos are so helpful... i rent out 2 houses.. and Phil your videos help me learn so much i I appreciate it

[@ReneeB5]

Thank you Phil! I own 8 properties that total 29 units... you are correct! My monthly income is much higher than my local counterparts that only buy/rent out single family homes. All mine are multi unit properties. My expenses are lower on average as well for the exact reasons you outlined in this video. For me, it’s always been about the math. When looking at the potential properties to buy, I look at how can I keep my expenses low while obtaining the highest potential income without costing ME too much money. I never want to be out of pocket on any property if I have a unit empty. Thus far, it’s been very successful using this formula. I will say, however, lots of increases in property taxes, income taxes, insurance etc. so while we have raised rent to accommodate these increases, our monthly income % has remained the same.

[@ron3582]

Your magic formula is basic sense though, right?

[@ReneeB5]

Ron yes sir! 😉

[@LG123ABC]

What about the argument that I've seen being made on other channels that multi-unit properties have a higher level of churn compared with single family homes -- where tenants tend to stay put longer. Have you experienced this?

[@ericbrownlee8210]

Me and some good friends are looking into the flipping/renting business. We’re looking to start out with flipping several houses to build capital in the company, and then starting to get some rental properties to have long term investments so we can make money while we sleep. But hadn’t considered multi-family homes. Glad I watched this video and got your advice on not renting single family homes.

[@robify4]

Phil I simply want to say God bless you and keep you healthy and wealthy. You focus on number and number doesn't lie.

[@KevinConwayChannel]

Phil you have the best real estate channel on KZbin, without a doubt. Thanks for posting!!!!

[@Thejasonrogers]

Thank GOD I watched this before buying a sing family rental as my first investment !!! Thank you Phil!!!

[@jeanlenor1858]

I bought a duplex in 2017 for 10k which was in good condition. I rented each unit at $550/month and I did the attic and rent it for 500/month. Thats $1600/month gross without mortgage on a 10k investment. Thats unheard of. I also have good tenants who pay on time. My next move is to make a 2 br apartment rental in the basement.

[@freedom_mentor]

I love those rentals. Well done!

[@mammothorbust]

How did you find a duplex for 10k?? Where do you live?

[@jeanlenor1858]

@@mammothorbust CT

[@mikeandkathyaillon6749]

@@jeanlenor1858 CT is not landlord friendly. Have you had any evictions yet? If so, what has it cost you?

[@jeanlenor1858]

@@mikeandkathyaillon6749 I didn't say I invest in CT, I said I live there. You can't buy an empty lot for 10k in CT.

[@twowheelslater7112]

Looks like to me the answer is do the math. I love the idea of vacation rentals. Especially in places I want to go. Thats like a win win win if you have a management company that handles cleaning and all that.

[@jamiecummings6109]

I loved this video. Really filled in some blanks I had with renting vs flipping. Thank You Phil!!!!

[@webuyAzhouses]

Thank you Phil! You and your team have truely changed me & my family's life.

[@anamericanentrepreneur]

It also depends on one’s goals. Great video Phil!

[@OmarioKing_15]

I have watched a lot of KZbin videos that state the obvious. This video however is different. I have actually learnt from it.

[@livinghoperenovations9353]

I like how simply you break down this with just a marker and a whiteboard. Don't need to have great editing and fancy stuff to put out great content. Well done! New sub. 👍🏼

[@gerrywilson9162]

Phil 2020!!

[@kashfortheking]

This deserves an update for the appreciation point.

[@MitchDurfeeOfficial]

great video! I had to come back and watch again

[@anthonydooley224]

Flipping allows you to create some quick cash, however this creates a taxable event. Make sure you are planning for this. If a rental is only cash flowing $200, then don't buy it. You can't pay retail price for a rental and expect it to cash flow positive.

[@freedom_mentor]

Most single family homes in most areas will not cash flow positive paying retail.

[@NerdNest0]

Renting. Especially short term rentals. Airbnb is the best way to make a lot of money.

[@corylyons1107]

Problem with these numbers you are comparing is your 28k profit on the flip is the equity you have in the house. When you sell you receive it. But the "200 per month" can't be compared to the 28000 because the 200 per month is profit. The 28 k is still sitting there. So after your 100+ months , yes you have made that 28k but the equity is still in that house which at that point is much more than 28k because the rent also paid your principal down as you pocketed the 200 per month

[@Austin_SOLDanoRealEstate]

We STR our single family homes that used to be our primary residence on Airbnb and VRBO and make double to triple what we would make compared to Long Term Renting. Have been doing it for 2+ years and have had one not so good guest. And the equity in our property is insane because its now considered an investment property on 9 acres is through the roof being close to the Bay Area. We have also put a ton of sweat equity into it and we bought in 2011ish. Short Term Renting I think is the new game with high turnover so you are able to get into your listing often so no huge repairs, it increases the value of your property (people are buying Bnb properties for 50k+ just because its a rental), and we are making at least 2x more than we would if we long term rented.

[@freedom_mentor]

I moved completely over to short term vacation rentals about 6 years and have never looked back. It's a cash flowing dream.

[@Planetgreenzen]

You've done it again Phil. Thank you.Great video.

[@gustavovelasquez462]

Im watching this from Poland. Great advice. Amazing content

[@wingkeechan5329]

Just sold an apartment in Hong Kong bought in 1988 for HK$425k. Sold in 2017 for HK$4.4m. Self occupied for that 29 years. That's a long wait - 29 years. No capital gain tax. So, is flipping over a couple of years worth it?

[@freedom_mentor]

That's an average of about 32% return on the original investment per year for those 29 years. Excellent R.O.I.! We flip houses as fast as humanly possible. Well less than 6 months. With the Rent to Own technique, that can be a 1-2 year resell period. Then there are those investors that buy multi-family properties, renovate each unit over time, up the rents, and then resell after it is at peak performance. But I don't recommend that because if it is performing so well, why sell?

[@stephenwimer7235]

I love your videos. I wish I'd had these in the 70's.

[@mbyrdjd]

I always had a feeling this was the case, thanks for the knowledge!

[@RobbieeeG]

I feel like for your first few deal you should flip so you can get a good chunk of money quicker then with that money buy rentals.

[@sallytinay]

Thank you

[@whitneyturner3440]

I am so thankful for this channel. I had really expanded my mindset

[@davidwethington2957]

I love your point of view I'm in the learning process, and I really appreciate the other side of the argument points you bring out. Thanks.

[@paulkavanek8551]

Also, Rents go up over time, in some cases, every year. That wasn't factored into the comparison. However, I love your channel and have learned a lot on here!

[@freedom_mentor]

That was factored in! Property tax and insurance increases tend to cancel out any rental increases.

[@carlosvillalta9974]

You da man Phill!

[@ecoble7913]

I'm glad you reiterated because I was going to ask does this include multi-units & vacation rentals. Thanks! Your videos are awesome

[@sharintexas5264]

Now what’s happening is investors are buying the new build $250 - $350,000 homes and putting them into section 8. The ROI is insanely good but I have very mixed feelings about it.

[@tedpert8786]

Love fixing and flipping!

[@MrDavePed]

For a landlord appreciation is totally unhelpful since the property taxes will more than likely reflect any increase in market value. You won't benefit at all from appreciation unless you sell. All it can do is hurt you. ..

[@YungStokes1]

I live in Detroit man I can milk the rental market there’s thousands of good performing multi-families here

[@khall187]

Same here. This "wisdom" is all dependent on the area. I'm cash flowing 500+ on each of my properties

[@squarepegroundhole8211]

K. Hall nice profits! Are you in Detroit too?

[@YungStokes1]

K. Hall Exactly fam, what city are you in?

[@jeanlenor1858]

Same here.. Bought a 8 unit apartment building for 25k in 2018 and im currently renovating it. Cant wait to start cash flow 4k/month on it.

[@YungStokes1]

jean lenor much luck to you! What city are you in?

[@thoyo]

Seems similar to the old saying, "The only people who really got rich during the Gold Rush were those who sold the pickaxes and shovels." There will always be buyers. In a market downturn, the over leveraged and inefficient landlords are wiped out and a new wave of opportunists pick up the pieces for pennies on the dollar. Perhaps as Phil is saying, it is safer to wholesale and wholetail to the perennial buyer class than it is to join their ranks. I'm not sure what the answer is, but at least it's food for thought.

[@ssccreativision2619]

Happy Friday! Thanks for the wisdom nuggets!

[@jwc56]

Phil, how about renting vs. Airbnb's? Which is a better investment?

[@dwaal2408]

Wesley C. I mean I don’t have any properties and just getting into this and can tell you location is key in airbnb . If your in Cali and got a location let’s say close to staples center or just la In general . Of course Airbnb will get you a lot of more cash flow then renting . You could make a few hundreds to a few thousand off of one guest for a few days . Vs 2-300 hundreds monthly

[@mike73391]

I agree with everything in this video but for a fair comparison you need to include equity buildup. The cash flow is not the only positive number I think it should also included the mortgage loan principal payoff. Flipping should still come up ahead but it won’t take the 10+ years like you say in the video. Overall house renting is less upside, lower risk, less work but the aim should be to move into multi family homes like you said. I own a single family rental planning on doing a 1031 exchange to move into a multi family investment. Both strategies work doing any is better than sitting on the sidelines and doing nothing. Have a short term (flipping) and a long term goal (rentals).

[@Ryanmonts]

Yes but you have to understand the concept of liquid Capitol and how it can accelerate wealth compared to it being tied up in a rental. I'm flipping 7 or 8 a year. That generates way more money than my rentals. Hes not saying rentals are bad, just 4 plexs and up have better ROI

[@DavidGr33nx]

Bought a house for $400k. Renovate it for $50k. Selling it for $550k (negotiable). Renting out $2000 per month. However I made a special tenancy agreement that is "Rent to Buy" with a period of 5/10 years. Every 2 years I will increase the rental of the property at a fix price of $100.

[@freedom_mentor]

What is your net positive cashflow, per month, after paying all expenses including debt service?

[@mikeseifert]

Phil, your videos are awesome! Thanks!

[@roam849]

What about the principal pay of the mortgage you get from the rental payments over time? Equity over time Doesn't that go into the profit? So 200/Mon plus say 400-500 in principal on the loan that when you sell you make as well?

[@MrDavePed]

Is flipping via contract for deed advantageous? With a contract for deed you get regular cash flow without paying property tax or maintenance. You get a down payment up front and even though you sell to the strongest prospect there's the possibility of default. Also selling a house is much faster/easier via contract for deed as I understand it? Selling at a somewhat higher price also? Thanks Phil. You're the BEST real estate instructor on YooToob. ..

[@freedom_mentor]

We oftentimes sell on a Rent to Own (not a contract for Deed) because when (not "if") the occupant is late or stops making monthly payments, with a Rent to Own, you can evict them in a month or two. With a contract for Deed, it requires foreclosure which can take a year or more. This video explains more: kzbin.info/www/bejne/npiXfGRolpmKkNE

[@joeld7398]

Ah wow 🔥 dope breakdown! Do more like this

[@chriscj71]

Absolutely phenomenal video. Thank you Phil

[@rayhudgens4945]

See your point but just left out equity paydown, leverage, deflation, reverse inflation on renting out SFHs. Can you really can't build wealth on flip profits vs owning SFH rentals for 20 years. I have 4 SFHs worth over 1M and should be very nice in 20 years?

[@freedom_mentor]

I have a great playlist on the subject of owning rental property: kzbin.info/aero/PLcPfCvShc59vmdxOSDKLeDgxHYq-xze9X I own more than $20MM in rental property so I certainly am pro-rental property and deeply understand the benefits. But you have to be strategic with the rental property that you own.

[@franciscoanahaw7725]

another great wisdom. Thanks for sharing.

[@LoVe-kl4zl]

Very real and knowledgeable. Thanks Phil

[@landlord5552]

Here in Åland/Finland best ROI I get from studio appartments

[@BigGus87]

Nice thanks haha that ending was good

[@user-uy3eq5hg1s]

Makes a lot of sense, Phil. Renting single family homes always seemed like a losing strategy to me. If you lose a tenant and have vacancy it can wipe out your profit for the entire year.

[@anniealexander9616]

I disagree. I bought a home in 2008. I rented it to a family who lived in it over 5 years. The rent cover the purchase price of the home. Im out of pocket for about $40,000 in renovations since i bought it but i now have a nice home to live in. I purchased another home in 2009. I just moved out of it last year. Before i moved in it, tenants would stay 2-3 years. There were only 2 families since 2009. Rent to older couples with great incomes. Young couples don't stay in these multi-units very long. They break up and move home with mom. They get ideas for new adventures and move on. They have kids destroying the property. They have parties and disturb the "good tenants".

[@JennyBrett]

I like to flip....never tried renting but I don't really want to. Possibly if the area was right.

[@mackes3683]

What do you think about short term/executive rentals that are fully furnished and equipped?

[@freedom_mentor]

If the NOI is huge, I love them!

[@rraconstruction9401]

Great video, Phil. I would love to get a copy of your book.

[@freedom_mentor]

Get one here: www.freedommentor.com/free-book

[@CarlosGomez-xy6eg]

How do you benefit from appreciation? It's called doing a cash out refi. Taking your proceeds and then buying more rentals with it. That's exactly what I did! Bought in 2012, in TN, and got $26K+ out and still cashflow each month on the new mortgage. Gonna use that to get another rental soon (financed of course).

[@freedom_mentor]

Do that model with high return on investment rentals, not traditional single family home rentals.

[@teacherhomieg]

Phil Pustejovsky what do you consider high ROI on a duplex? I’m seeing some of them have ROIs lower than single family rentals in some cases.

[@freedom_mentor]

At least a 20% CAP rate and 40+% roi @@teacherhomieg

[@teacherhomieg]

Phil Pustejovsky 20% Cap rate and 40% ROI!!!??? Wow that’s high. Must be all cash deals.

[@freedom_mentor]

No. If the Cap rate and the ROI was the same, it would be all cash deals. If the ROI is double the cap rate, you know that there was a loan involved. @@teacherhomieg

[@ReneeB5]

Phil, I’m getting to the point I think I need to utilize a property management group. I’ve heard a lot of nightmare stories from some investors. If I’m gonna grow any further I know I’m finna need one. My husband won’t be able to retire for another 2-3 years. Im currently mostly managing 8 properties/ 29 units on my own. It’s soooo overwhelming! Paperwork, maintenance, showings, leases, phone calls, etc...I’ve tried hiring help on the side, some are a total flop day one, others start out doing well... they get comfortable then start not doing quality work, Lieing about their hours, stealing off of us, etc... HELP! Thoughts?!?!

[@bradcoddington1679]

Try finding a good property management company to help with the lease agreements tenant background and credit checks. We have a company that we work with with our rentals and they do a fantastic job of weeding out the bad actors and all it costs us is on months rental.

[@freedom_mentor]

Hire and train your own property manager. You know exactly what to do. You now need to document and systematize what you are currently doing and hire someone else to run that system. Read the book, "The E-Myth" to understand what I mean by "System".

[@anthonydooley224]

Vacancy could be a problem if you only own one or two rentals, however if you have more scale, a few vacancies don't even matter.

[@freedom_mentor]

They still matter on that specific property; which is why the single unit, single tenant, traditional single family home is not nearly as productive as flipping homes and then buying multi-family units for long term rental.

[@dannusmk1578]

Awesome! Excellent presentation, TY

[@brendahobbs4486]

Can you put home warranties on rental property?

[@lovmuzik99]

Liquid cash is gold passive income is freedom. I rather have 5K a month passive income then 200K cash on bank per say.

[@jamierose8927]

This is amazing keep it up Phil!

[@jmora6529]

Excellent analysis! Thank you!

[@vancejenkins1385]

Is there a point where it does make sense to hold the property? Like what is the trigger point for payoff (e.g. 24 months, 36 months...)? I've got a property I am in escrow on and already have someone willing to pay above what I paid without lifting a finger. IMO it is a steal either way I just don't know if there is a rule of thumb to refer to.

[@freedom_mentor]

It depends on so many factors.

[@anniealexander9616]

I understand that single family homes come with less cash flow. But roofs only need replacing every 20-30 years. Make tenants responsible for yard maintaince. Looks like single family homes would sell for more money when its time to sell. Investment property buyers are always looking for a deal. 🤔

[@toowhomitmayconcern2831]

Hey Phil, is it a good idea to refi one rental to buy another? I Cant keep my capital up so I sold my last rental.

[@Ethernet480]

Phil - Clift's notes opinion on investing in vacation rentals/condos in the Celebration, FL area? Do they have zoning issues there? I'm from out of state (MI).

[@freedom_mentor]

I don't know off the top of my head. You'll need to research it by calling the city of Celebration as well as Osceola County zoning departments.

[@lindamagwete]

Amazing video thanks!

[@busninessman123]

What type of properties are considered High ROI rentals?

[@freedom_mentor]

"High" is relative. For me, the cash on cash returns must exceed 40% and the cap rates must be above 20% for me to consider it "high". Most people would jump for joy to have a 1/4th of those figures.

[@Wherecatsrule-y6w]

What about a vacation rental property?

[@jrue305]

Hey Phil what do you think about fix cash out refi then sell rent to own on single family homes?

[@freedom_mentor]

If the return on investment is large enough, then go for it. But I doubt it will be after all that.

[@gregcastor7230]

I’m doing that now. I call it a “slow flip” and it works great ROI is infinite because I have no money in the deal after cash out refi. Average profit is $30K.

[@gulfcoastrealestate24]

Hey Phil great video thanks for sharing!

[@mammothorbust]

Interesting. I have two rental properties (condos), and am in the midst of refinancing one to take out cash and look for a single family rental. This makes me rethink that. I've been afraid that having a yard and roof at a rental property will make things more expensive. Now I'm thinking maybe I should save for longer (or try a flip or two) and use that money plus the refinance to get a multi-unit.

[@freedom_mentor]

Condos rarely cash flow very well because of the association fees, etc. Selling those and 1031 exchanging into much higher R.O.I. property would be very wise.

[@dhpitcher]

Phil could you be more specific as to what type of real estate would be considered High ROI?

[@freedom_mentor]

"High" is a relative term. To me, "high" is more than 40% cash on cash return. Most people think more than 10% cash on cash return is "high".

[@dhpitcher]

@@freedom_mentor Is it fair to say that "high" roi on rental properties is most commonly attained through short term vacation rentals?

[@freedom_mentor]

@@dhpitcher There are many ways to get there. I prefer short term vacation rentals but there are several other ways to pull it off.

[@carlosvillalta9974]

@@dhpitcher people are killing it in big bear with rentals. i would love to flip for a rental there.

[@PacificTrekker]

Phil, thank you for your videos. There is plenty of real life real estate expertise in there. I'm wondering if you have a video on dos and don'ts of tax sales. The term could be different but basically I'm referring to forced sales by municipalities due to propery tax defaults. Such properties are usually cheaper but come with risks. The key one being issues with possession (municipalities dont guarantee vacant possession) and no access to the property before bidding. Any advice will be appreciated.

[@freedom_mentor]

I sure do! Watch this video: kzbin.info/www/bejne/qHWZZmmohryprrM and check out this video too: kzbin.info/www/bejne/jXTPdYOPlJ5nbqM

[@ArmandoPerezContractor]

Good video.I am building a duplex close to Sarasota downtown ,my controversy is "vacation rental or regular rental" What would you do.

[@Ryanmonts]

Vacation will bring more, if you can convert to corporate lodging in off season

[@freedom_mentor]

You should have already had your exit plan dialed in before you started building. You may not be able to legally do a short term vacation rental.

[@JuancoPRoFlow]

@@freedom_mentor good point there Phil.

[@justinm5725]

Just asking is it best to do duplexs

[@Ryanmonts]

No 4 plex. Or bigger.

[@senpaicatz8124]

im just gonna ask what if your rental property will be rent to own property?

[@freedom_mentor]

That could be an exception to this rule, as I mention that it is one of the 3 ways to turn a house into a cash flowing machine.

[@jeffbower4581]

I see a lot of mentions about BRRRR and how people are loving it.

[@MetalBum]

How do you save money on flip money? I was gonna do a flip in California then realized it’s ordinary income on the profits. And cali has 10+% state tax Profit. so it’s about 45% -55% taxes!!!!!!

[@freedom_mentor]

Use those funds to cover business expenses so your net taxable income is $0 on your flipping operations.

[@MetalBum]

@@freedom_mentor Well for this flip I'm going to potentially be making $35k (I'm in escrow selling now) so I'm not sure at his point how to write off the $35k... eek

[@freedom_mentor]

@@MetalBum You've still got over two months to spend those funds on "business expenses" like a car, etc. There are many ways to spend that money wisely so that you get future benefit without it showing as taxable income.

[@MetalBum]

@@freedom_mentor thanks phil I'm actually looking into that. I actually have a property management company... so i'm going to pay my property management company a 'project manager fee' I think and then write that off some more on office expenses. I saw your other videos on writing off more would that make sense?

[@JuancoPRoFlow]

High Octane ROI, that was funny. So which will these high octane roi investments be? Thanks

[@johnkao8254]

Yes, that was totally unclear. Put the money in "high ROI" rental properties. What does that mean???

[@mbossom22]

Phil your friend who purchased that property in PA for 25K, was that a foreclosure ? Also do you happen to know the average net rental income is on a 2 family or a multi family ?

[@freedom_mentor]

Duplex. As for the average net rental income per unit on a multi family; it depends on the area. A really good NOI per unit on a national level is $200 per month per unit.

[@MerkBonez]

Where do I get this book?

[@freedom_mentor]

www.freedommentor.com/free-book

[@dakotaperry-m1z]

I really enjoy how he speaks you can tell he knows his stuff, hes entertaining like trump

[@freedom_mentor]

Thank you!

[@哈哈哈笑-f4b]

"A" class content! I've been educating myself a lot about RE investments, and the more I read and watch, my questions gets more and more complicated. This content answered a lot which I couldn't figure out. Thanks Phil! Can you do a content that explains "how to invest RE rental property with $500k cash". After watching this vid i now understand it's best to invest multi family than traditional single family. But with 500k how can I invest more properly, further and safer? Thanks.

[@freedom_mentor]

Use the $500,000 for the down payment (along with a reserve amount) on a larger multi-family property, if not more than one.

[@jazzy8766]

With 500 k you should invest in multiple properties

[@jayc4715]

Great info..BUT..its easier to find great deals on single family homes and theres alot more available compared to multi family.

[@pk_Consistent]

Great vid thank you for sharing

[@megenberg8]

appreciating real estate? hopefully, it won't go much higher, as so many young are not able to buy a home, and we have a home shortage generally as has been so often reported in recent years. this morning i hear it's been seller's market for some time. last week it was said to be a buyer's. but housing has been overpriced for so long! a modest (could use a redo) 3 brm cape cod @ 100,000+ is common if not the near norm! some are (initially, at least) asking twice that! flipping is still essential for starting out from zero and gathering $$ for more lucrative investments. this fellow has it right! it sure is tough out there at first, but gains are poss. there are a lot of properties that w/ a bit of repair and attention, one can either sell (or rent, at least for a time). and it helps to have at least one partner, even one's spouse. my brother started this way in the late 70's and became a builder, eventually. i must say though, the bills need to be paid (your costs of living) as you go. your daily expenses must be totally independent. you require the time and freedom to succeed w/o having to be concerned w/ having a roof over your head, etc. no one can go it alone, maybe a person w/ great talents could forge ahead, but it takes a bit of $. you must have able/dependable workers and a way of directing others professionally. your time must be applied wisely as only a competent person does. i think that so many good opportunities exist that there simply are not enough people w/ the required essentials ($$) and energy. you need a certain independence. this man is a teacher par excellence!!

[@freedom_mentor]

There is an affordability crisis but that's an incredible opportunity for real estate investors in and of itself.

[@freedom_mentor]

@PearlPerlita Venegas Take this free course: courses.freedommentor.com

[@SCP-001DatabaseAdministrator]

Prices up because of the dirt pimps

[@kevinrichardson8591]

I have a different outlook on rentals. In fact I dont believe they are profitable with single family homes. You have your loan or mortgage to pay along with insurance and taxes, hopefully you are making over what you owe in rent, and assuming you always have a tenant, you still have maintenance cost monthly, heating and air units are not cheap, appliances, flooring, plumbing, it adds up. Why not take that same single family home, owner finance it to a tenant buyer or stretch out a lease option for 3 to 5 years. You get down payment up front, charge the tenant buyer a little more month to month, and there's NO MAINTENANCE for you because you basically become the bank and the tenant BUYER who is purchasing the property assumes the maintenance. Depending on the deal u made you could be killing it in the end on the purchase option as well so that's 3 profit periods on 1 deal, in the beginning you are getting a down payment anywhere from 3 to 10 percent, then you get a cashflow monthly all while saving on monthly expenses, and when they buy the profit in order with the deal you made could be a home run depending on the purchase price you negotiated and the sales price you negotiated with the tenant buyer.

[@freedom_mentor]

You have the exact same outlook on Single Family Homes as me.

[@kevinrichardson8591]

Thanks Phil!!! Lol, i have the right mindset, now just time to nail down my first deal..Cool to know you actually reply on youtube, not many ppl with real estate investment channels do! I was wondering, assuming you are a man who's can see things coming in the finance world..I'd love to pick ur brain on what u r doing to prepare for a tank like it looks like we r screaming towards.

[@freedom_mentor]

Why do you think we are "screaming towards a tank"? @@kevinrichardson8591

[@dewayneanderson8985]

Single families are great. I have had great success.

[@chukmuoneke]

GREAT LESSON (AS ALWAYS!!!) PHIL. How can one reach out to you directly?

[@kayabm5141]

If you buy a foreclosed single family at below market value i dont see why there wouldnt be a good ROI even on a rental proerty.

[@freedom_mentor]

It all depends on the property's net cash flow...some states have very high property taxes and high insurance rates yet low rental incomes (aka New Jersey Shore)