All Forum Posts by: Branden Drebing

@Austin Steed - I can relate to that last piece. Quickly running numbers on deals from Redfin has me thinking I found a gem until I realize that I'm not including expenses for capex, vacancies, HOA, etc...

@Bill B. - I appreciate your insight, and I had a feeling that expecting to add enough value to be able to pull money out with a refi was a long shot. Given your experience with the local market, if I were to buy a SFH now and not do any rehab/refinance, do you think that it would cash flow 12 months from now? I'm wondering if I should continue renting an apartment until things cool down or if it would be worthwhile to take advantage of a low interest rate + start building equity in a property.

@Brian Walters - it looks like you're right about the location of multi-families, so a SFH seems like my best bet. Good to confirm the 1031 piece, as well.

Hi all - I am aiming to invest in my first property in the coming months, and I'm looking for feedback on my plan. My long-term goal is to invest in multi-family properties that favor cash flow over appreciation. My short-term goal is to minimize my living expense while still living in a decent area. I am currently living in Los Angeles, but plan to move to Las Vegas to invest. 

Here is my plan:

- Purchase a distressed SFH using a conventional loan (5% down)

- Live in that property for 6-12 months while rehabbing it

- Cash our refinance 

- Purchase another SFH as my new primary residence and plan to live there for 3-5 years

- Rent out the initial SFH and cashflow a reasonable amount

- Continue to save money from working + build equity in the initial SFH

- Leverage a 1031 exchange to sell the initial SFH for a distressed multi-family property (using my own savings to supplement the down payment)

- BRRRR that multi-family property and keep repeating from there

Here are my questions:

1) Would I be better off forgoing the two SFHs altogether, and continuing to rent an apartment until I have enough money saved up to buy a multi-family property as my first investment? *Note: After speaking with a LV real estate agent, I have ruled out house-hacking a duplex/triplex/fourplex due to the location of available inventory (one of my short term goals is to live in a decent area/home)

2) Would it be best to use a conventional 30 year mortgage to purchase the initial SFH and then refinance with that lender, or would I be better off looking for a hard money lender initially and then refinancing with a 30 year mortgage after the rehab?

3) Are there any restrictions to using a 1031 exchange to go from a SFH to a multi-family property?

Any insight here is much appreciated!