BUENA PARK, CA · Member since 2017 · 58 posts · 333 votes
I would like to THANK BiggerPockets for your guidance and information made available!
Reading, Listening to the Podcasts, networking on here and just everyone has been awesome!
It has been a WILD RIDE! As just a year ago I owned nothing but making my monthly payments on my primary residence here in CA, and work as a HS Teacher. Now I am in the middle of a rehab on my 3rd duplex which is going well. (fingers crossed) :)
When I retired from Coaching Football, my friend handed me a book, 'Rich Dad, Poor Dad' and I was hooked to action instead of watching others on HGTV!
I'm 37, a High School Teacher, Married with 2 Beautiful Children. I am not rich, I did not have a huge savings, I did not have parents or anyone gift me anything - I worked, and met great people that helped and guided me and I STILL HAVE TONS TO LEARN!
I am in California and my Properties are in Memphis.
Just wanted to express my gratitude and say IT IS POSSIBLE!
Great work! I’m also in California and am looking into the Memphis market with multi family properties. Are you using the Brrrr strategy?
Will keep my eyes on this post :)
@Anthony White Congrats Coach! Glad things are working out for you and yours. I love this site as well. Bigger Pockets has been and continues to be a huge resource for me. Good luck and keep us posted.
@Anthony White
Congrats! Thank you for sharing, because WOW! that is inspirational.
The sky is the limit, until you crack through that!, so keep going Anthony.
Thanks for the inspiration :) How has it been managing properties out of state? Would you recommend it or is it a headache??
Honestly I love it... I ran a High School football program and am currently a high school teacher, so watching over 15 properties seems a lot easier, especially when they pay you monthly to look over them.
I do have a a property manager, I went with the big company at first, which I just terminated my contract and then found an individual who was just as hungry and eager as me, who answers when I call, my MUST - so that has been great.
Great work! I’m also in California and am looking into the Memphis market with multi family properties. Are you using the Brrrr strategy?
Will keep my eyes on this post :)
The problem I have seen with the BRRR strategy in Memphis, is that the properties I go after as not that expensive, the cost to refinance doesn't seem worth it. Paying $6k in fees for a $40k-$60k property.
I used 3 different types of funding.
Seller financing
My HELOC
Unsecured Line of Credit
I may look at a Portfolio Loan, I am not an expert AT ALL. I still have tons to learn.
@Anthony White That is so awesome, I hope to follow in your footsteps! If you are not refinancing your money back out, do you mind if I ask how you are coming up with down payment and rehab money? Is that all just going on your HELOC, line of credit, etc?
@Anthony White That is so awesome, I hope to follow in your footsteps! If you are not refinancing your money back out, do you mind if I ask how you are coming up with down payment and rehab money? Is that all just going on your HELOC, line of credit, etc?
With the HELOC, I factored that into the purchasing price and bought the properties cash.
The next step for me would be to see about how I can bundle some properties together, Cash them out - over 30 years, then repay the equity line of credit - and now with those 'portfolio' properties rented the mortgage should be good with the rents coming in.
For the HELOC, I figured it was 10 years interest only, I bought a 8 unit property, and 2 SFR that rent out a total of $4,000/mo. My HELOC payment, interest only at 4% locked for 5 years is $555. So basically I feel like I have no reason to rush and refinance and cash out on those properties.
I also started an LLC but I am still researching and learning how to run everything through the LLC so I can remove my personal finances, credit liabilities and such from these.
So your HELOC must be massive to have been able to use it for an 8 unit and 2 SFR correct? Do you worry about trying to refinance down the road and the market having a different lending landscape?
So your HELOC must be massive to have been able to use it for an 8 unit and 2 SFR correct? Do you worry about trying to refinance down the road and the market having a different lending landscape?
Thanks for letting me pick your brain :)
Remember I live in CA, we bought at the downfall of 2008 and its is now 2018 at a peak.
I figure/hope my home will be paid off in 10 years as well, so god forbid, but if something happens, with the price we purchased at, we can sell, refi, or something else.
@Anthony White
Awesome work! It is always great to hear stories of out-of-state investing success. Especially when you have so many other things in life keeping you busy. Keep up the great work!
@Anthony White
That’s great. Awesome story. What are the average rents on the 8-plex? Most the rents I’ve seen on multifamily of that size in Memphis are really low (sub 500).
Does the increased taxes on duplexes still make it worth it for you to buy those vs single family?
Either way, off to s good start. I plan on buying a lot of those 45-65k type houses myself in Memphis. Rents for 800 or so or more and up.
That’s great. Awesome story. What are the average rents on the 8-plex? Most the rents I’ve seen on multifamily of that size in Memphis are really low (sub 500).
Does the increased taxes on duplexes still make it worth it for you to buy those vs single family?
Either way, off to s good start. I plan on buying a lot of those 45-65k type houses myself in Memphis. Rents for 800 or so or more and up.