All Forum Posts by: Brian Bohrer

It is all going to hinge on your risk tolerance.  If you want to go hard in the paint and buy multiple properties after you have paid the current mortgage to 20% in order to drop the insurance, you definitely can but could add a lot of unneeded stress as well.  Paying off the mortgage does not seem like the answer either, since with inflation those payments are going to get cheaper and cheaper down the line.  Whereas your rentals will be riding the inflation wave and should help keep your income up in the future.  

If it was me, I would do what I am comfortable with.  If you don't want to manage 5 rentals that you put $100k down for each, then buy 2 or 3 and sleep better at night knowing if the worst came to fruition that you would have enough equity to come back out in good shape.  It's all about being able to sleep at night!  Good Luck @John Peter I wish you the best on your adventure!

Congratulations @Jacques L Burnett!  That is awesome and welcome to the Real Estate Investor club!

Are you buying these investments with cash or are you taking out loans?  If you are taking out loans, one thing to be mindful of is your total debt to income ratio as you will be scrutinized by underwriters when you go to buy your 2nd and 3rd home.  If you are new to investment income, a bank will want to see 2 years of income (with documentation) from your rental property(ies) in order to consider this as income.  You always have options with hard money lenders, but their rates are generally a bit higher as well.

My wife and I are trying to buy a new personal residence ourselves every 12-18 months and will be encountering this hurtle ourselves soon enough!  Good luck on your investment journey!

Hey Ivan,

If you interested in investing outside of your expensive market, I have heard many investors talk about Midwest properties. I personally own a rental SFH in central Nebraska that gives a great cash return but appreciation is around 3% on average. If you are looking to grow that money, you may be able to find some houses in the $100k range that your $25,000 would cover the down payment on. You would definitely create some cashflow at the expense of appreciation, and you would want to be sure that you have enough reserves to cover 3-6 months of mortgage payments and basic utilities if it goes unrented etc. This property could help you to save up some cash until rates get better to refinance your Oceanside rental.

There was a Biggerpockets podcast recently with a savvy woman from the Detroit area who may have some great insight for you!  Episode 674 and originally Episode 331

Hope this helps and good luck on your investment adventure!  I am only brave enough to invest in my area, so if you decide Colorado Springs is where you want to go, be sure to drop me a message! haha

Take Care,

Hello Paul,

First of all I think the Colorado Springs market is an excellent place to invest, but there is also a lot competition that comes with the territory as an agent.  I was in your same position about 5 months ago.  The other commenters are absolutely correct in that most real estate adjacent positions will want your license inactive due to the conflict of interest.  I moved to Colorado Springs in May and was able to pass the test and sign up with a brokerage within 3 months.  Once my license was in hand, I wanted to earn some income at a full time W2 while I learned the ropes as a new agent in a new area with ZERO contacts.

I focused on property management and community management positions because they generally did not care about the active RE license.  But, I was soon to find out that without any experience in the field I was just another applicant that would need extensive training to bring up to speed.  After 2 months of interviews and rejections, I ultimately made the decision that you gotta burn the boats!  I decided that I couldn't half-*** it, and if I wanted to be successful in Real Estate then I needed to give it my all!  I was even finally offered a position at a community management company the Monday after the weekend that I decided to go all in and I turned the position down.  Boat officially burned!

Ultimately it is up to how comfortable you are with risk.  If you are comfortable getting out and making contacts to develop your business out of the gate then get your license and don't look back!  If you think you need time to dip your toes, then find that W2 and attend all the meetups you can to learn about what is working in the area.  Either way you will be living in one of the most beautiful metro cities in the nation, can't go wrong there man!

TLDR - I would look into property management or community management (large apartments generally) for a career that will teach you about a sector of real estate, but I would suggest giving it your all as an agent first if you can afford to survive the bumpy start.  If you need money to make it at first then get a W2 and study on the side.  You can always be building your contact database until you have your license in place and are stable to go out on your own!

Hope this helps, feel free to reach out if you need anything!