All Forum Posts by: Account Closed

@Mike Hoherchak yes, putting zero down does make it more risky. If you wanted to be much safer, I’d say 25-30% down. If you’ll still be able to cover your loan payments with some vacancy, then it could work... just don’t get upside down on your loan-to-value requirements.

@Erik Schneider I second Crushing It and Best Ever Apartment Syndication book.

@Jacob Phillips your head's in the right place. What are you calling CAPEX and how much are you budgeting for that? Is property improvements/renovations that will drive rents up, or more like setting aside maintenance funds? If it's the former, then you may see if your lender will let you finance a certain amount for improvements. What happens if one of your units goes vacant? What about 2 units? Just make sure you're not coming out of pocket each month.

@Rogelio Vivero this is a pretty open-ended question. There are a million ways to get started. What’s your living situation... do you need to live in a single family home or are you okay living in a multi-family building? If the latter, house-hacking would be a good option for you. Buy a low-maintenance multi-unit building in a good area and live in one of the units while your tenants help cover the mortgage. This also gets you tax benefits. Duplex is the minimum, but more units is less risky for you if you can afford it... with a 4-plex or 8-plex, it won’t have as much of an impact if one tenant moves out. This would also teach you the basics of managing tenants/rental properties and allow you to build up a cash reserve for your next deal. Last note, 1031 Exchange is a powerful tool to build wealth with deferred taxes, but meet with a real estate CPA to ensure you understand the implications of that rule. Good luck!

@Joe A. Hands down Joe Fairless (Best Ever Show)... get the book too!

I’ve also gotten good value from Rod Khleif’s podcast.

@Mike Hoherchak strategy all the way... buy right, buy for cashflow, and don’t over-leverage, and you’ll be fine.

@John Reardon I agree with your concern about San Diego... if it doesn’t cashflow, don’t buy it. Looking at less expensive markets where you can get good cashflow properties and preferably out a bit more down so you’re not as heavily leveraged... you’ll be safe during any correction. Keep in mind also that loan defaults in the US are at all-time lows, incomes are rising, and the percentage of renters in the US is still going up. Many people could choose to buy a home, but they just prefer to rent... if a recession comes, the number of folks who rent will likely go up even further. Good luck.

@Issac Harris some mentors may push you like a trainer at the gym. With others, you must bring the motivation, and they will have the experience and step-by-step program that outlines the path to success. In either case, consider that a big mistake early in your career can be a huge setback... how much is it worth to have a very experienced investor in your corner to help you avoid that costly mistake? Many investors could build their businesses and learn key lessons on their own, but they would likely take longer and start smaller than if they had the mentor’s support & guidance.

@Alex Arn thanks for the great explanation!

@Steven Bond heading to Joe Fairless’ Best Ever conference next month in Denver... first time but heard great things about past conferences.