All Forum Posts by: Aristotle Kumpis

As you may know, California has terrible landlord laws. It's just a matter of time before the entire state is under some kind of rent control. In fact, right now Prop 33 is being voted on in this year's election.

Other states like Texas and the Carolina's will be a little less expensive, so you can put less down. More landlord friendly, and they appreciate the same as Sacramento. No one has a crystal ball to what values will do over the next 10 years. But California is not just the only place to see long term appreciation.

Depends on how much you put down. 25% or 30% down will cash flow in most markets. How much cash flow are you expecting? On a turnkey house, expect to see $250-$300 a month if you put 25% down after all expenses. We even have brand new homes that cash flow more, due to the fact that the builders offer a much lower interest rate. Or consider a multi family as well.

Like Rick said, if the numbers make sense for you then why not? People invest for different reasons. I have a client that makes over $900K a year and needs tax breaks. Do you think he really needs the cash flow now? No. So if can bring his tax liability down with income properties, it makes sense to him. If you are a buy and hold investor, then you go where the numbers still make sense. I truly believe that it's always a good time to buy real estate, as long as you know where to go and where it makes sense.

You can be the go to agent in your own community/neighborhood. You don't need to move or work in another city. I know some agents that just farm their little area and that's all they need. They do very well. Being persistent is the key with being a good agent. It might take years to get there, but stick with it long enough and good things could happen.

This is a loaded question. Since you are still young, you will most likely change careers multiple times before you really learn what you love to do for work. Selling real estate(agent) is completely different than being an investor. The majority of investors, including myself, work full or part time. We use that money to invest in real estate. Sure, there are a handful of people that are full time investors. But I have found over the years that all the guru's that advertise courses are not even investing. So like Derrick said, I probably would not recommend you throw money at a course. I have seen people spend $20K, $40K, or even $60K at courses and they still never did a deal.

I never finished college and I'm angry at myself for not completing it. I was too excited to get out there and make money. So I suffered for a long time financially. You will have a long time out there working, so I suggest you go to college. A degree is something not only to fall back on, but also gives you skills. You can always invest in real estate.

A BRRRR property is something you buy from the start. Then you go through the motions. In your current situation, you can do a HELOC but only if the home is free and clear. If it's not, then your only option is to do a cash out refi. I would recommend a cash out refi even if the rates are a little higher than your liking. The reason is because your equity is just sitting there and not working for you. Say your cash flow goes from $1100/month to $500/month after a cash out. You will be able to buy another appreciating asset and increase your net worth. Talk with a lender, there are plenty on here. And they can give you an estimate.

Are you looking to flip the property in a few years? I know of a credit union in Alabama that can do 0% down on new construction rentals if you are interested. But you will be    -$700 a month cash flow each month.

We also have a few good real estate tax experts that we work with if you are looking for some referrals.

I guess it depends on what's more important to you right now. Monthly cash flow or using the equity to buy a personal home. Just remember that if you sell it to cash out, you will have to pay taxes on that. I'd do a 1031 exchange and defer capital gains. Buy another investment property and increase your net worth. What if you purchased a home for your mother to rent back to you? You could still avoid paying capital gains, and move up into something like a single family home.