All Forum Posts by: Arron Paulino

Makes sense. Maybe find somewhere not too far away from work in the suburban area/outskirts to avoid the big city prices. Yes, you'll be paying mostly interest rather than principal paydown starting out with the FHA loan hence the better play for you on paper but maybe not on the monthly.

It's not too risky so long as you pick your market(s) and do your numbers right. Yeah I was late to that city too when I started, but doesn't mean you can't make a play there. Just more fish in that pond is all so it'll take more time if you're okay with that. I too was hesitant going out of state, but I put my foot on the gas and started to make some moves. Even in my OOS market in Memphis, I'm still struggling to find something so it's been tough to move the needle. I understand how all the numbers work to make sense and it just has been more a being patient game when getting another property.

Hi Jennifer! First, I think you need to define what exactly you're looking to get out of all of this. Are you looking to invest in your state or invest out of state? Leave your W2 or just get some side income/diversify your investing portfolio? I'd attend your local REIAs if you're looking for an in-person mentor to guide you. You can find one via meetup.com and/or local Facebook groups. Keep educating yourself before you dive in so you can really set your standards and not get your hopes too high up. I'm telling you this from my experience as I was high with my expectations and really humbled myself getting to where I am now. I've gotten some rentals under my belt on my own, but nothing worth quitting my job for yet although this is my personal goal. Hope for the best and always open to chat!

 I just have to say very impressive to have accumulated $500k by 25 years old. Congrats man! All the best. I'm curious how you got to that level. I'd honestly say keep doing whatever it is you're doing as real estate can work too but keep your expectations low when starting. I'd leverage those funds to multiple cashflowing assets rather than just one property to spread out your wealth.

Happy to see you're getting into this game! It's honestly been a big learning experience for me just diving in and ironing out things as I went. I was like you and educated myself beforehand but you can only go so far until you dive in.

Sounds like you'd go for a house hack since you'd like a duplex first. You can apply for an FHA loan as a first time homebuyer to use your down payment money to get a property in your area and rent out the other half to get your firsthand experience. This is probably your preferred option. Maybe even think of moving to another city/state if you are comfortable with doing that unless you like living in your area.

In terms of out of state, try to find a landlord friendly state. You sound like me starting out and hope for the best man!

Thanks Mike! I've been doing the BRRRR strategy and it's worked. Just when the expected capex comes up it eats into the gains I had so it's almost like I said a neutral effect in obtaining and maintaining positive cash flow. Not to mention when I cash out, the interest rate isn't the same as a few years back where it has almost doubled to where I barely breakeven on these newly attained properties.

It seems to be that I need a higher number of units to make it more likely to get the numbers I'd like to see in terms of my goal of ~$5,000/month net cash flow. Maybe I should start diving into multifamily, but not sure if Memphis is the market for it although it can be. I just have seen more success with single family in my opinion.

I think I am in scale mode and am wondering how to effectively go about doing this. Right now, I've just been handling things financially on my own without any other lenders aside from the refinance part of the BRRRR. By doing this exit strategy, I was able to get these distressed properties to rent ready condition. I think the expected maintenance issues (plumbing, HVAC, and the like) really ate into cash flow that I developed over time and has kept me at a plateau-like position. Any tips on improving the game plan?

 Thanks for being available!

 I’d like to learn more about where you invest in CA. I’ll reach out

 That sounds great. I sent you a message!

Hey Travis! I currently have eight doors in Memphis. I will liquidating two of them, possibly three, to regain capital to venture into another market. I agree and I'm thinking I'll need at least double my doors to see some significance.

Your "hometown" is not too far from me! I am actually interested in investing in the Detroit area and would like to learn more. I'll send you a message and get connected.

That's the goal I'd like to get to as well in terms of rent per month. I'll be reaching out!