All Forum Posts by: Brook Davenport

If possible, I always recommend using your own capital starting out to prove process and concepts before taking hard money for flips. A Heloc on my primary residence was where I started, and I was able to use all my own money. 

There are tons of beginner friendly hard money investors on here that will lend to a first time flipper, although it may be a higher rate, their expertise will be invaluable. 

I like to consult Zillow when first analying. Head to the "for rent" tab, mark your general criteria (bed/bath count), and check days on market for those rental listings. Quick way to see how long vacant listings are sitting.

Once you have criteria you are looking to purchase, Zillow recently sold data is also great for starting out. You can do a comparison of Price sold to rent per sqft and get a great idea of how the market is changing or what to expect from rentals there!

Great move looking to hire a CPA! 

When I first hired one, I asked if they had experience in real estate investing/ have clients who do it. A CPA who understands that will be night and day different than someone who doesn't (seems obvious, but its not ha!)

Tax laws are different from State to State, but I have found my CPA to be worth every penny. You can ask rate, but typically a good one will be more expensive (as is with most things in life), and they will save you money in the long run. 

I asked about knowledge on 1031 exchanges, accelerated depreciation, and LLC filing requirements when shopping around as well.

Hey Bruce, One thing I have realized is there is always a reason to wait when wanting to invest. If I could tell my past self 1 single piece of advise, it would be to invest sooner than later (as long as the deal makes sense)

There has always been reasons that deterred me (slow market, high rates, low rental demand), but the benefits have always outweighed those reasons for me (market appreciation, mortgage paydown, tax benefits).

For every reason there is to wait, I always find 5 that encourage me to invest! Hope this helps!

Hey David, My wife were in a very similar situation with our first place. We had a 2.9% rate on it with great cash flow, and it was our previous PR. We ended up going the HELOC route on that property for a few reasons. 1) the interest at the time was only 5%, which although seemed high, didn't matter too much with our potential property showing a 18% ROI 2) we leveraged a second home loan with 10% down for that new property, so our HELOC withdrawal was relatively small compared to what would be needed for a traditional loan on a rental. 3) I dont think I will see the rates in the 2% again in my lifetime, so figured I should hold on to that "free money" instead of selling it. My view on it was yes the rate was high, but making 18% on a new property trumps a 5% interest payment in my opinion. Hope this helps!

There are a few different options you can look for in this case. I am a firm believer that if you find an investment vessel that advertises returns above 12 to 15%, any investor should be excited to get into the deal. Friends and family is where I started looking for private money, as there was already a trust factor there.

Once you figure out what type of property you are looking for, laying out the repayment period for investors will help as well. Some investors want to get paid back within 12 months (most hard money lenders), while some lenders (friends) may be OK with a longer multi year term. I would start putting together a few different options for private money, which will help you find a general idea of the deal that you will need to close.

There are lots of ways to delegate what tenants are responsible for, and whichever way you choose needs to be laid out in the lease.

My tenants are responsible for yard maintenance, and it is explicitly laid out in the lease terms there is no confusion. I also layout that as a landlord, I am responsible for major repairs, including HVAC, mechanical, and plumbing. Normal wear, and terror, for my tenants are to be covered by them typically at the end of the rental lease period. 

Congrats on getting your offer excepted!

I am a firm believer that the value of real estate will continue to increase year over year. I don’t ever think that investing in real estate is a bad idea, especially if you can start with it being your primary residence.

If you can keep up with the monthly payment, you would be looking at both mortgage pay down and appreciation within 3 to 5 years. It may not make sense to become a rental at that point, but at least you will have some equity under your belt if you wish to keep it or sell it . Something does not offer (BUT the payments need to make sense for you). Hope this helps!

Hey Sharon! My family is located in MLB, and just purchased a second home there (south of the airport). As someone who lived in Satellite (behind the CVS beachside), I will say the upkeep with the salt water was tough, but the area was phenomenal. 
Our rental in the MLB area does great with travelers near the airport, and those looking to go downtown. We have found that there is more of a market in the Melbourne area than the beach (go figure ha!)

Aerospace companies have been great with traveling business leads, as well as the hospital. I personally am looking a MTR in that area, rather than the beach strictly for headaches regarding hurricanes/salt. Best of luck!

I have had luck on Zillow rental and furnish finder. 
I find these are less spammy than FB marketplace