Real Estate Broker · Scottsdale AZ & Cleveland, OH · Member since 2019 · 168 posts · 109 votes
7y
How to Scale after 5 Rental Income Properties?
I just started listening to BP Podcast a few months ago after completing the Rental Income Podcast with Dan Lane. I am enjoying it and listen while I am running or traveling. I am in the process of buying my 4th home. I have Multi Family and Single Family homes and I work full time where the pay is way too high to walk away. I say this because I now live in AZ where I have properties (Turn Key) and also in OH where my projects are intense - In OH, I am long distance BRRR'ing and long distance land lording which keeps it fun!
In regards to funding, I am using my HELOC account for the down payment. I have been saving up for 20% down payment and then buying another property. I plan on doing this one more time next year, but then after I acquire 5 properties it will be hard to acquire more due to my debt/income ratio even with an 814 credit score and no debt other than my rental income properties.
I have a serious capacity for stress and risk. I stay extremely aggressive in work, investments and in life! With the stock market being extremely volatile, just like many of the members in the BP Community, is the reason why I love real estate so much! With that being said, I wanted to reach out with my question:
After I acquire 5 properties (where my goal long term goal is to acquire 10), do you recommend paying off the 5 for a year or two until the market correction unfolds or look for other types of funding? In order for me to scale outside of just being a sole individual real estate investor, I would need some guidance on partnerships and outside funding as I have been using traditional financing.
Please send me your recommendations as I am reading lots of books and articles and networking to add more weapons to my tool belt over the next 5 years!
Investor · Whalan, NSW · Member since 2016 · 8 posts · 0 votes
7y
@Brandon Turner
What is your best advise to proceed investing in very expensive market like Sydney where prices are now going down. I'm from the Philippines and migrated to Australia and would like to start investing here. Please give some tips to proceed. Thanks very much!
Investor · Member since 2017 · 239 posts · 149 votes
7y
@Brandon Turner I went to a seminar that was talking about a 453 instead of a 1031exchange and they said it defers taxes for 30 years. I don’t know anyone who has tried this new tax strategy before and it seems risky but the tax guy said it is a better option so you aren’t forced to buy something you don’t end up wanting to own. Can you go through the pros and cons of the 453 tax deferral strategy?
Rental Property Investor · Akron, OH · Member since 2017 · 22 posts · 12 votes
7y
@Jared Smith
You can do a refi out with a commercial loan on all five properties as a bundle and start over, or you can move to commercial loans for your next properties individually. Or you can get hard money loans or even private funding. You can also do owner financing. I suggest you go to your local REIA group and you'll meet lots of people there who can help.
Real Estate Broker · Scottsdale AZ & Cleveland, OH · Member since 2019 · 168 posts · 109 votes
7y
After self-managing for +6 yrs. I have officially hired my dad who loves it (believe it or not)! In the Cleveland Market, I am having other investors/friends/colleagues reach out on property management. Outside of the standard 10% monthly rate and 1 month's rent for landing a showing, what are some good ways to structure a property mgt contract? such as hourly rates or flat rates for management, projects as well for overseeing contractors?
Also, do you recommend accepting CMHA - Section 8 Housing?
Investor · Fullerton, CA · Member since 2017 · 9 posts · 1 vote
7y
Hello Brandon!
What are the biggest differences, economically and culturally, investing in Hawaii versus investing in the Pacific Northwest and what was the biggest adjustment you had to make?
Love your podcasts! and your presence on BP has been very inspiring. I just read and watch your tips about using HELOCs but i have some quick questions I cant seem to find a straight answer for...
- Does opening mulitple HELOCs affect your DTI and Fico scores? Im curious because I have just opened 2 Helocs ($900k worth) and I have opportunity to open more with the rest of my other 3 properties but reluctant to do so. My concern is this will lock me out from qualifying for any loans to refi purchased property using HELOC monies.
- What do you think I should do... Should I stop at 2 HELOCs or leverage the rest?