Growing investment portfolio with focus on generational wealth
Investor · Coeur d'Alene, ID · Member since 2023 · 5 posts · 2 votes
Growing investment portfolio with focus on generational wealth
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Cody FenskeBusiness Member
Post Falls, ID · Member since 2023 · 18 posts · 12 votesOh, awesome! You are doing well then! I moved out of California about 4 year ago and sold everything I had there because although the rental would have kept high returns, I didn't trust the laws and lack of landlord rights in liberal states. That's still the issue I have with other markets like Washington. I'm licensed over there as well and I often come across things that tempt me because the returns are better than here in Idaho. I'm holding out for Idaho though, unless something remarkable pops up that I can't refuse. When I bought a home in CDA 4ish years ago, I put a much larger down than I should have in retrospect. That home is meant to be a rental after I leave it this year or next, and it'll certainly cash flow very well, but I should have put less down and bought a few instead. Unfortunately the great rates felt like they would last forever and the inventory was about a third of what we currently have. I also wasn't a Realtor back then so there is a lot I should have done differently. I wish I knew then what I know now! Now that I've saved back up a few hundred thousand, I can start investing again without pulling equity from what I have. I'm currently looking for a STR in CDA or Hayden and I'm also looking for some LTR multifamily or house hack situations.
Cody Fenske - eXp Realty 532 Reviews
11 Replies
- 2yAlex BreshearsBusiness MemberLender · Springfield, MO · Member since 2020 · 351 posts · 504 votesHi Melissa and welcome to the community! BP has a wealth of information - from the bookstore to BPCon. You mentioned a wide variety of interests - so my suggestion is to focus on one or two that really resonate with you and dive in. It’s so easy to get shiny object syndrome in real estate - there are just so many ways to have opportunities.
Quote from @Melissa Svenson:
Hello Big Pocket Nation! We reside in beautiful Coeur d’Alene, Idaho. Joined Bigger Pockets to network with likeminded real estate investors while we continue to grow our portfolio for our family. Interested in LTR’s, Multi-family, hard money lending, creative financing and potential partnerships 🏠 💵 📈
If you are interested in being the lender for investors BP has a book Lend to Live - that talks about this process and how to do it. I’m one of the authors.
My suggestion would be to network with people who are doing those things and get their perspective on what they like, don’t like, what they would do differently. Don’t spend time talking to them about the mechanics of what they do - that’s available anywhere. Ask them stuff that isn’t readily available on YouTube or a forum. That will really help shape how you move forward and what opportunities you feel you want to pursue. - 2yCody FenskeBusiness MemberPost Falls, ID · Member since 2023 · 18 posts · 12 votes
Welcome Melissa! Nice to see someone else from North Idaho! I took live in Coeur d'Alene. Do you already have rentals? If so are they local or what other areas do you like investing? I am trying to keep all of mine here despite the better return in other states. I just consider us to be too blessed living here and have more faith in our market than I do others. I'm clearly biased though lol.
Cody Fenske - eXp Realty 532 Reviews - Investor · Coeur d'Alene, ID · Member since 2023 · 5 posts · 2 votes2y
Hello Alex,
Thank you for your reply and input. I truly appreciate it. I’ll add your book to my list and will heed your advice! We are shaping our goals for 2024 and the future. Love all the opportunities real estate brings.
I see you are in Springfield. It’s been a while, but I supported the Expedia project in the former airport terminal space years ago. Hopefully, it survived and is still providing jobs to the community. It was a unique project to be a part of!Kind regards, Melissa
- Investor · Coeur d'Alene, ID · Member since 2023 · 5 posts · 2 votes2y
Thank you, Cody - yes, this is a wonderful place to call home! We have rentals in CDA Place and Post Falls. For now, we are primarily focused on investing in Northern Idaho. We occasionally, get tempted by Spokane. What does your portfolio look like?
- 2yCody FenskeBusiness MemberPost Falls, ID · Member since 2023 · 18 posts · 12 votes
Oh, awesome! You are doing well then! I moved out of California about 4 year ago and sold everything I had there because although the rental would have kept high returns, I didn't trust the laws and lack of landlord rights in liberal states. That's still the issue I have with other markets like Washington. I'm licensed over there as well and I often come across things that tempt me because the returns are better than here in Idaho. I'm holding out for Idaho though, unless something remarkable pops up that I can't refuse. When I bought a home in CDA 4ish years ago, I put a much larger down than I should have in retrospect. That home is meant to be a rental after I leave it this year or next, and it'll certainly cash flow very well, but I should have put less down and bought a few instead. Unfortunately the great rates felt like they would last forever and the inventory was about a third of what we currently have. I also wasn't a Realtor back then so there is a lot I should have done differently. I wish I knew then what I know now! Now that I've saved back up a few hundred thousand, I can start investing again without pulling equity from what I have. I'm currently looking for a STR in CDA or Hayden and I'm also looking for some LTR multifamily or house hack situations.
Cody Fenske - eXp Realty 532 Reviews - Investor · Coeur d'Alene, ID · Member since 2023 · 5 posts · 2 votes2y
Sounds like you have your head in straight, Cody! Learning is certainly part of the journey. We got lucky with low rates still in place on one property then found a unicorn subto in Post Falls recently. We're in the same boat when it comes to Washington though. Have to remind ourselves who's on first there 😩 Hope you find a STR or LTR that pencils out well! I'd love to house hack if my family would let me!
- 2yCody FenskeBusiness MemberPost Falls, ID · Member since 2023 · 18 posts · 12 votes
Yeah, the house hacking certainly can't work well with family lol. My wife and kids would keep that off the table for my main residence, that's for sure! I recently saw a great multigenerational setup in Post Falls that would be perfect for house hacking though. When I see places like that I get tempted to throw up a door to divide the living spaces and make a couple of units out of the one. Or just rent each room for 600 or 700 a pop. I have some young clients who are wise to that because they moved out of a house that was setup like that. A couple of these kids are getting pretty good cash flow despite the current rates so it's definitely an impressive model!
Cody Fenske - eXp Realty 532 Reviews - Specialist · NJ · Member since 2022 · 1k+ posts · 649 votes2y
What a cool name for a city.
Yes, the elusive scaling objective. How do you do this investing to scale and grow out a worthwhile portfolio along the way. Well, that will depend on a few external factors like market, rates, capital access.
I looked into the Boise market for my clients. Boise has shown great appreciation in their economy and housing market. But, Boise is one of those markets that is ultra competitive and inventory owned for the most part by the wholesalers. Numbers off the MLS there do not work for a good investment. It's one of those markets where deep pockets win over investment savvy, unless you can carve out your own wholesale channel and get a deal per month to come your way on your own.
I work on scaling strategies for my clients all the time. The kew factors are: Inventory(choices), project turnover (close to close/refi), resources to make the moves, and resources to find, rehab, and then sell the flips and a lender for the bridge loans and the refis.
Most people, most, will have a hard time scaling on their own, especially of their home market is un-investable to them.
I keep my clients busy by opening up markets and making those key relationships and putting an infrastructure in place that will find, lend on, and rehab houses. I have an investor that's been with me since thanksgiving, she is in 4 nice projects. I have a BP member here been with me from July, he is in his third project - his first hold - a triplex.
My group generates short term cash with the SFH and then will hold the 2 - 4 unit stuff. I've said it here before, only about 50% of the SFH that I price into a DSCR work, whereas, I have never had a 2 - 4 unit NOT work with DSCR pricing.
- 2yDon SpaffordPro MemberInvestor · Idaho Falls, ID · Member since 2016 · 912 posts · 629 votes
@Melissa Svenson Welcome to BP! This is a great place to get started and learn a lot! I highly recommend paying at least for a Pro membership to access everything. I used BP as my mentor when I started. I listened to or watched all of the podcast episodes and webinars. I advise you to do the same and read many books, connect with people here, ask questions and even answer questions in the forums. Once you get started investing, you will be surprised how quickly things will begin to change for you. I started with a fourplex. BP forums helped me learn about 10% down payment options from local lenders and that I could borrow from my 4001k for the down payment. Once I did that, I kept doing more and pushing myself. In a few years I was doing some big commercial RE syndication deals which is now what I focus on, in additional to some JV opportunities. We also still help people looking to buy both STR and LTR in the East Idaho areas. Idaho is a great market not just for the appreciation but generally good tenants. There is a lot of growth still happening in East Idaho so there is still a lot of room to take advantage on everything that is to come.
- Investor · Coeur d'Alene, ID · Member since 2023 · 5 posts · 2 votes2y
Thank you for your reply, Don. I am a PRO member so all set there! We've been in and out of investments for almost 20 years while W2'ing. Now I have more time to focus on growing our portfolio. Best of luck!
- Real Estate Agent · Member since 2023 · 18 posts · 1 vote2y
Quote from @Cody Fenske:
Oh, awesome! You are doing well then! I moved out of California about 4 year ago and sold everything I had there because although the rental would have kept high returns, I didn't trust the laws and lack of landlord rights in liberal states. That's still the issue I have with other markets like Washington. I'm licensed over there as well and I often come across things that tempt me because the returns are better than here in Idaho. I'm holding out for Idaho though, unless something remarkable pops up that I can't refuse. When I bought a home in CDA 4ish years ago, I put a much larger down than I should have in retrospect. That home is meant to be a rental after I leave it this year or next, and it'll certainly cash flow very well, but I should have put less down and bought a few instead. Unfortunately the great rates felt like they would last forever and the inventory was about a third of what we currently have. I also wasn't a Realtor back then so there is a lot I should have done differently. I wish I knew then what I know now! Now that I've saved back up a few hundred thousand, I can start investing again without pulling equity from what I have. I'm currently looking for a STR in CDA or Hayden and I'm also looking for some LTR multifamily or house hack situations.
I may have a few leads on STR's in Coeur D'alene, as I do property management locally and come across off market sellers : )
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