All Forum Posts by: Andrew McGuire

@Nick Coons

I started my career with a house hack but not in the traditional sense, I had a young family and my wifes compromise was no one was living in our house and she wanted to own. My plan at the time was to sell our primary and use the equity to buy my first 2 rentals. What ended up happening to meet "the compromise" we still sold our pimary and took all the equity out finding a new construction townhome in an area we liked. This was 3 years ago so it cost 300K we went in at 5% down or 15K + 4K closing so we got in for under 20K. This left me with 100K which was plenty to get my first rentals going. Essentially we turned 1 house into 3 which for me counts as a house hack :). I definitely would say do it if you can find a situation that works for you but don't put your family in a situation where there is a lot of discomfort, some might say do whatever it takes and that's how I was at the time but I'm glad we went the way we did. Good luck. 

Hi All, I am visiting Hawaii in July, does anyone know of any RE or related conferences July 3rd-10th? Would love to meet some local investors while out. 

Andrew

@Jeffrey Reynolds

Catch me on Glen Sutherlands podcast "A Canadian Investing in the U.S." we record next week and should be published mid April if you want to learn more about the market. 

@Kendrick Seen

Definitely agree with most that you do not want to buy something that loses money, that being said I know a couple investors who have huge monthly cashflow from other properties that are okay buying luxury STR's in Phoenix that would lose money if they had to traditionally rent them, they are okay to take that risks because they more than make up for it with their portfolio. Everyone's situation is different, I love what David Greene says about this topic. If your goal is to get out of the rat race find the highly casfhlowing markets/deals even if it means sacrificing cashflow, if you don't need the cashflow now buy in a good area that will appreciate at a higher rate and produce large cashflow 5-10 years down the road.

@Justice Staines

I'm an Agent and I will tell you don't sell it! Only sell if it is a big problem or you don't like the area which doesnt seem to be the case. Have you done David Greene's Return on equity calc? basically take the cashflow for the year and divide it by your equity and see what that comes out to, if lower than 10% maybe consider refinancing to get your hands on that equity to find a new higher performing deal. I like anywhere in Phoenix or Pinal county as long term investments and am starting to work with out of state clients to go into that market. Don't look back in 5-10 years and be like why oh why did I sell lol, I hear it all the time. Flipside if it allows you to buy a nicer or higher performing deal than maybe its worth it doing a 1031. 

Good luck 

@Sean Yang

I'm personally up on the market, I worked with an out of state investor doing a 1031 exchange into a new construction single family home in Casa Grande. Investors purchase price is 405K and will rent for 2100-2200 which is nice for AZ right now. He had a large down with the 1031 so it will cashflow nicely, I believe the market will see nice appreciation and rent increases over the next few years with how crazy expensive Phoenix is getting, in addition all of the manufacturing that is going into the area. Most of my investors are out of state and looking for STR's in AZ which isn't the case with this deal being new construction, he is going to rent room by room or Furnished finder route to try to boost cashflow knowing that he will fine if he has to go back to traditional rental. We also had to be creative purchasing as a "2nd home" as most new developments will not technically sell to investors. I am also looking at mf's in the area but they have been awful...

Good luck 

@Chris B.

I like the "hey look, we can do this the easy way or the hard way". I've had good luck saying keep this months rent and I will give you additional cash (I have offered $500) towards your next deposit. The hard way giving notices and hiring attorney to do down eviction path, luckily I have not had to do this yet. Reminding them that landlords almost always check previous eviction and you don't want to go down that path but are willing to if necessary. 

This really sucks, we sacrifice so much to buy rentals and sometimes people do not understand that and take advantage...good luck. 

@Jeffrey Reynolds 

I came across a great Youtube episode of Jesse Freagele's podcast with guest Chris Picciurro tacking this topic. It was from 12/15/2020 if you search it. Chris is a CPA that focuses his business on Canadian's looking to invest in the U.S.. Other than that come to Phoenix :), Texas is great but those property taxes will sneak up on you. 

Come out to the first of monthly "Escape 9-5 Room" Meetup. We are going to talk strategy on looking for cashflow in a piping hot market like Phoenix using creative management tactics. Will also have @Jeremy Bottlinger on hand to discuss powerful tax strategies for beginning investors. Very informal, look forward to meeting you all! 

@Nick Coons

Yes what you said but in reverse, I will evaluate for other strategies I use that are more actively managing that produce higher CoC but I still want the property to have a 1:1 DSCR (Debt Service Coverage Ratio) with all expenses/reserves. I never want to be in a situation where I am cashflow negative if AirBnb, FF or Room by Room dry up. Its hard to do but there are deals that meet that criteria out there.