Finally have some financing- LET'S GO!!!

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Finally have some financing- LET'S GO!!!

Glen FitzmauricePro Member
Member since 2008 · 40 posts · 15 votes

Good day all.   I'm almost 55 years old and I'm looking to create some retirement income.

I've owned martial arts schools for 27 years and I'm ready to do something different.  

I own one of the commercial properties where I operate one of my karate schools.   It has two apartments that generate $28K a year and a basement where I have heated storage for cars and motorcycles that generates another  $12K.

After speaking with a few banks I have been able to acquire some financing. I can get a HELOC on my home for $85K and I can get a HELOC on my commercial building for $50K.

I'm NOT a carpenter or a handyman but I'm willing to learn.

Having said all that.....I'm really not sure where to start.   

I won't need any income from any properties I buy for the next 3-5 years.   My thoughts are to buy a distressed property, fix it up and rent it, put a mortgage on it, pay back my HELOC and repeat over and over and over.

Just not sure if I should be looking at single family homes, duplexes or multi-units.

I appreciate any help, suggestions and guidance.

Thanks all!!!

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Allie McAlister
Memphis, TN · Member since 2024 · 180 posts · 223 votes
11mo

Hi @Glen Fitzmaurice

Congrats on getting your financing lined up, that’s a huge step!

Your plan to use the HELOC to buy, rehab, rent, and refinance (the BRRRR model) makes a lot of sense, and a lot of investors get started this way. Depending on the market you're looking at, you might find it easier to start with single-family homes before moving into multi-units. They're typically simpler to finance, manage, and sell if you decide to adjust your strategy later.

If you're looking to invest outside of your local area, Memphis has been a great market for out-of-state investors because of the low entry price points, steady rents, and landlord-friendly laws. I'm an agent here and work with quite a few clients who use this exact HELOC-to-BRRRR approach.

Happy to share some examples or talk through what kind of numbers make sense for your one if that would help. You’re definitely on the right track — just take that first small deal, learn the process, and scale from there.

Best of luck!

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  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    11mo
    Quote from @Glen Fitzmaurice:

    Good day all.   I'm almost 55 years old and I'm looking to create some retirement income.

    I've owned martial arts schools for 27 years and I'm ready to do something different.  

    I own one of the commercial properties where I operate one of my karate schools.   It has two apartments that generate $28K a year and a basement where I have heated storage for cars and motorcycles that generates another  $12K.

    After speaking with a few banks I have been able to acquire some financing. I can get a HELOC on my home for $85K and I can get a HELOC on my commercial building for $50K.

    I'm NOT a carpenter or a handyman but I'm willing to learn.

    Having said all that.....I'm really not sure where to start.   

    I won't need any income from any properties I buy for the next 3-5 years.   My thoughts are to buy a distressed property, fix it up and rent it, put a mortgage on it, pay back my HELOC and repeat over and over and over.

    Just not sure if I should be looking at single family homes, duplexes or multi-units.

    I appreciate any help, suggestions and guidance.

    Thanks all!!!

    .
    Well, you start with deciding on a market. For instance I buy and sell in Arizona and Texas and dabble in a couple of other states. 

    I practice the martial arts of real estate financing called Creative Financing. You may want to look into it.

    How To Save $253,417 Buying a Property Using Creative Financing https://www.biggerpockets.com/forums/311/topics/1264302-how-...

     All it is, is learning a new move.

    0Reply
  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    11mo

    @Glen Fitzmaurice 

    Hey Glen, welcome!

    It sounds like you’ve built a great business, which gives you a solid foundation to dive into real estate. You probably already have a sense of this from running your business and owning commercial properties, but one thing that can really influence how successful your strategy is understanding how all your income streams work together from a tax perspective, especially as you plan for retirement. 

    Things like depreciation on rental units (especially now that 100% bonus depreciation is back), deductions for improvements, and how you structure financing can all impact cash flow and long-term returns. Even if you don’t need income for the next 3–5 years, thinking about taxes now can make each step of your plan more efficient and help your retirement goals come together more smoothly.

    This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.

    [email protected]941-914-7779
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  • Kate Nixon Taylor
    Lender · Cary, NC · Member since 2021 · 122 posts · 29 votes
    11mo

    It definitely depends on the market but usually 2-family or duplexes are a great place to start.

    I'd be happy to connect and when you need leverage, I can shop hundreds of lenders for you at The One Brokerage. 

    0Reply
  • Glen FitzmauricePro Member
    OP
    Member since 2008 · 40 posts · 15 votes
    11mo

    Thanks for the feedback everyone!!!

    I'm guessing it takes a little bit to figure out what your "niche" in real estate will be.

    1Reply
  • Elealeh Fulmaran
    Specialist · Member since 2025 · 483 posts · 270 votes
    11mo

    Love the plan and the momentum you've built already. With HELOCs in hand and no need for income for 3–5 years, start simple: target light‑value‑add single‑family or duplex in solid C to B areas, focus on cosmetic rehabs you can manage with a GC, get it rented quickly, then refinance into long‑term debt to replenish the HELOC and repeat. Keep your buy box tight, stress‑test rents and expenses with your PM, avoid heavy structural projects early, and line up your refi path now (conventional or DSCR) with clear seasoning requirements. First move: pick one market, one property type, and underwrite 5 deals this week to calibrate your numbers.

    0Reply
  • Allie McAlister
    Memphis, TN · Member since 2024 · 180 posts · 223 votes
    11mo

    Hi @Glen Fitzmaurice

    Congrats on getting your financing lined up, that’s a huge step!

    Your plan to use the HELOC to buy, rehab, rent, and refinance (the BRRRR model) makes a lot of sense, and a lot of investors get started this way. Depending on the market you're looking at, you might find it easier to start with single-family homes before moving into multi-units. They're typically simpler to finance, manage, and sell if you decide to adjust your strategy later.

    If you're looking to invest outside of your local area, Memphis has been a great market for out-of-state investors because of the low entry price points, steady rents, and landlord-friendly laws. I'm an agent here and work with quite a few clients who use this exact HELOC-to-BRRRR approach.

    Happy to share some examples or talk through what kind of numbers make sense for your one if that would help. You’re definitely on the right track — just take that first small deal, learn the process, and scale from there.

    Best of luck!

    1Reply
  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    11mo

    Glen - are you in a position to house hack? To me, that's always the #1 option in my book and the way you can best leverage. 

    If not, you could start building your portfolio through BRRRR. However, I'd caution you on doing a full gut rehab on your first property unless you have the right team in place. Perhaps do a cosmetic rehab first and then work your way up to a full gut. Making sure there's enough cash on these BRRRR projects is crucial because there will likely be times you need to front money to keep the project moving. Make sure to have plenty of reserves!

    [email protected]
    Brick House CPAs53 Reviews
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    0Reply
    • Glen FitzmauricePro Member
      OP
      Member since 2008 · 40 posts · 15 votes
      11mo
      Quote from @Aaron Zimmerman:

      Glen - are you in a position to house hack? To me, that's always the #1 option in my book and the way you can best leverage. 

      If not, you could start building your portfolio through BRRRR. However, I'd caution you on doing a full gut rehab on your first property unless you have the right team in place. Perhaps do a cosmetic rehab first and then work your way up to a full gut. Making sure there's enough cash on these BRRRR projects is crucial because there will likely be times you need to front money to keep the project moving. Make sure to have plenty of reserves!


       Thank you so much for your response!   House hacking is a possibility for sure.   And I may do that at some point in time.  

      I'm thinking right now I need to do what you're talking about and find a property that's not the greatest but also not a full rehab.

      I'm hoping I can do a few BRRR's then have a decent down payment on a 4 unit.

      My goal is to get up to $20K/month of net income.   I'd like to think I can do that in the next 5 years but not sure if that is a realistic goal.

      0Reply
    • Ken M.
      Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
      11mo
      Quote from @Glen Fitzmaurice:
      Quote from @Aaron Zimmerman:

      Glen - are you in a position to house hack? To me, that's always the #1 option in my book and the way you can best leverage. 

      If not, you could start building your portfolio through BRRRR. However, I'd caution you on doing a full gut rehab on your first property unless you have the right team in place. Perhaps do a cosmetic rehab first and then work your way up to a full gut. Making sure there's enough cash on these BRRRR projects is crucial because there will likely be times you need to front money to keep the project moving. Make sure to have plenty of reserves!


       Thank you so much for your response!   House hacking is a possibility for sure.   And I may do that at some point in time.  

      I'm thinking right now I need to do what you're talking about and find a property that's not the greatest but also not a full rehab.

      I'm hoping I can do a few BRRR's then have a decent down payment on a 4 unit.

      My goal is to get up to $20K/month of net income.   I'd like to think I can do that in the next 5 years but not sure if that is a realistic goal.

      Your comment: "My goal is to get up to $20K/month of net income. I'd like to think I can do that in the next 5 years but not sure if that is a realistic goal."

      It's an admirable goal, however if it was easy to do on  your own,  you would have done it by now. With the age and timing you mention, unless you have unlimited wealth, you need creative financing, someone who knows how to put that together for you and someone who will hold you accountable. :-)
      0Reply
    • Glen FitzmauricePro Member
      OP
      Member since 2008 · 40 posts · 15 votes
      11mo
      0Reply
    • Glen FitzmauricePro Member
      OP
      Member since 2008 · 40 posts · 15 votes
      11mo
      It's an admirable goal, however if it was easy to do on  your own,  you would have done it by now. With the age and timing you mention, unless you have unlimited wealth, you need creative financing, someone who knows how to put that together for you and someone who will hold you accountable. :-)
      I have had mentors in my other businesses and they have made a HUGE difference!!!   

      The challenge that I've found is that it can be tricky to find a mentor that is worth their salt.

      I'd love to see some names and results from some of the gurus/mentors in real estate investing.
      0Reply
    • Ken M.
      Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
      11mo
      Quote from @Glen Fitzmaurice:
      It's an admirable goal, however if it was easy to do on  your own,  you would have done it by now. With the age and timing you mention, unless you have unlimited wealth, you need creative financing, someone who knows how to put that together for you and someone who will hold you accountable. :-)
      I have had mentors in my other businesses and they have made a HUGE difference!!!   

      The challenge that I've found is that it can be tricky to find a mentor that is worth their salt.

      I'd love to see some names and results from some of the gurus/mentors in real estate investing.
      I always prefer to see results (like this)

      https://www.biggerpockets.com/forums/311/topics/1265821-using-creative-financing-to-buy-off-market-with-subject-to-and-wraps


      0Reply
  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    11mo
    Yes. Especially in your earlier investing, you don’t bite off more than you can chew. The $20k per month will require quite a few brrrs to keep you moving toward the goal. I’d focus on getting your first property and see what you like and don’t like. Best of luck!
    [email protected]
    Brick House CPAs53 Reviews
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    0Reply
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