Investing in a Depressed Area

“Long-term what are you trying to accomplish and will this help get you there?” This is mentoring session #2 with Mathieu – The Insurance Broker.

1:28 – Mathieu’s very first eviction
3:39 – Jay’s experience having to evict 3 of 4 tenants
5:12 – The “woe is me” mentality
6:35 – A bad experience Mathieu had with a potential tenant that made him not invest
8:05 – Why the area Mathieu is investing in now is a “depressed area” but he still wants to invest there
10:23 – The high Pennsylvania property taxes and why this is an issue for investing
12:07 – The update on Mathieu’s storage units
15:03 – The decreasing number of blighted properties available with more investment in Pennsylvania
17:23 – Being “right” in the long-term with investing
18:40 – Refinancing the HELOC
20:10 – Why you need to be careful with a portfolio loan
21:27 – The two exit strategies for Jay’s properties
22:32 – Jay’s duplex that he just sold for a 428% return in 3 years
23:41 – What the banks are telling Mathieu in regard to his potential investments
25:20 – What happened when Mathieu surprised his contractor with an unexpected inspection
27:25 – Diversifying your investments
29:30 – How Jay handles appliances for a 42-unit building
33:02 – The actual income from offering laundry services
36:08 – Why Mathieu is torn on doing the portfolio loan
37:04 – Thinking about what you want to accomplish in the long-term

“If you can’t rent a property for more than half a percent of what it’s worth you should have enough equity in that thing to sell it. It’s time to move on.” – Jay
“I do – I’ve got mobile homes, I’ve got apartment complexes, single-family homes – and they’re all in different cities so I’m diversifying.” – Jay
“Long-term what are you trying to accomplish and will this help get you there?” – Jay
“It’s not about what’s convenient this month or next month, but what’s going to be convenient in 10 years or 20 years.” – Mathieu