All Forum Posts by: Aaron W.

@Kyle Fricke For residential multifamily (4 or less units), your ARV will rely more on the comps of similar properties. You could do your own research of recent sales through sites like Zillow, Redfin, etc. You can also ask a real estate broker to run this report for you.

For multifamily properties with 5 or more units, you are starting into the commercial residential space where the income approach is more widely used, which is based upon net operating income (NOI) and cap rates. In these situations, the goal is to raise the NOI in order to raise the valuation of the property.

Best of luck!

@Aaron May That's great you are maxing out your 401k!  

A lender should look at your gross pay when determining your debt-to-income, so your maxing out the 401k should not affect this. Maxing out may limit the amount of cash-on-hand to invest in real estate as you are likely investing it in stocks through the 401k, unless you have a self directed solo 401k or some other self directed account where you can use to invest in real estate. 

If you want to raise your debt-to-income, then you should focus on raising your current income or reducing any recurring debt.

Best of luck!

@Sandra Ibrahim At any moment in time throughout this journey a mentor or coach can be utilized. This coach should be able to guide you through your current phase. You may go through many different mentors or coaches, formal and informal, throughout this journey. Sometimes the best mentors are those who are a few steps ahead of where you are.

Best of luck!

@Andrew Ekmark Network, network, network!  Also, ask your current investors if they know anyone else who would be interested in this "opportunity" (use this word). If it is a great deal, then you should be able to drum up interest.  

Hard money lenders are also another alternative to get short-term financing for your project.

Best of luck!

@Nick Louie I would not work with a broker where I would need to cover the commission if it does not meet a certain percentage unless they were an awesome broker and I could not find anyone else as good as they are. 

@Kevin Tunnell I don't think there is a wrong answer here. This is about your preference and goals in investing in this property.

5-6 months from now, the rates will likely still remain low so that should be less of a worry. What I would look at is the future potential of the property. What is your goal in investing in real estate and what goals do you need to accomplish these goals? Which property will help you move closer to accomplishing the goals?

Best of luck!

@Gustavo Perez Jr Very good!

It is possible to get into real estate investing without little to no money out of your pocket. There are many articles and examples on BP talking about it. If you can find a great deal, then there is likely going to be someone out there who is willing to fund it since they don't want to do the work.

Best of luck!

@Ashley Nichols Congrats on having a paid off house!

Have you thought about taking on a partner who can bring in additional funds?  What about your partner? Can he bring in anything? So instead of adding him to title, just create a partnership with him. 

The BRRRR is an excellent strategy but it is important to buy the right property so you can take out as much equity as possible to repeat the process.

Best of luck!

@Gustavo Perez Jr What are you saving for?  What is your why in saving and investing? What goals do you need to reach to accomplish your why? 

Everyone's situation, goals, and aspirations are different. You'll want to figure yours out first before proceeding.

@Ramon E Alvarez It really depends on the situation. Now that the moratorium is extended, this does buy the tenants time if that is the reason.  During normal times, real estate is cyclical where tenants with children try to settle down before the school year begins. This could also be leading to many to be seeking new places to live.

It could be a good thing to have so many possible tenants. Screen them well and pick the best one to fill your vacancy.

Best of luck!