Posted by dealmaker on July 12, 2005 at 07:25:52:
Hmmm, is there a question here?
OK, it sounds like you’ve done pretty well at buying in below market, congratulations. I see you’re in TX so I’m guessing DAL, HOU, or AUS with those FMVs.
My question for you is “are these places cash flowing”? I don’t mean "covering your PITI. I mean CASH FLOWING. Covering PITI, allowance for vacancies, repairs, PROFIT, the higher taxes that come when the homeowner’s exemptions come off, etc.
It sounds like you may be a bit resentful that your friend is making a commission off of your business. I try to do business with people that I’m buddies with, but not at MY EXPENSE. If his rates and fees are comparable fine, if not, tell him so.
Assuming you’re making money on all these units, big assumptions in TX, evaluate where you stand finacially. That means taking a REALISTIC look at your ability to withstand a market downturn and/or multiple long-term vacancies. Then when you’re comfortable add to your portfolio.
Remember, life is long. Your goal during your “working” years to acquire and maintain those assets that will support and maintain you during your retirement years.
Good luck on your journey.