All Forum Posts by: Bryan Stengel

Hi Ryan, the appreciation might be worth the wait if you can confidently handled the cash flow.  It is still risky considering that there are always variables that need to be considered.  The possibility of vacancy would also grearly impact the cash flow as well.

Thank you for this post, Garrett!  I am always trying to learn how to do better in this type of space. 

Hi Jenna, I would consider investing closer to home.  Try to more research on properties you could at least get to.  They are certainly around and people do not necessarily talk about them as often.  If you do decide to invest in either of these two cities, make sure to research the area where you are purchasing the home.  The quality of your tenant is just as important as the investment you make.  Sometimes paying a premium on a home also guarantees a higher demand in the neighborhood and with that may come a higher demand for a rental as well.  My advice is just to do more research and really get to know the area that you decide to buy in.  

Hi Richard, I think you should connect with a  Realtor that wants you to see the property physically.  I never heard of one discouraging a potential buyer from doing just that.  While it is good that she has all these resources, I would never let my Realtor dictate the course of the deal.  That is up for me to decide.  She could refer people to you for various aspects of the real estate transaction, but you should not locked in to working with her.  Just make sure you don't sign with any Realtor until you have found the right one.  I found my out of state Realtors on Bigger Pockets.  

Hi Sean, I wouldn't rush into anything that you are not comfortable with the numbers. Obtaining the FHA loan is great and you could repeat the process after about a year with the right lender. Also I've heard of some DSCR loans that are not too far off from conventional rates. In the meantime, just focus on filing the vacany of the first property you bought and get familiar with what it's like to own a rental property first. That would be my suggestion.

Hi Chris, there are several options you could consider, but it would all be based on your risk tolerance. A HELOC is certainly an option if you could pay it off rather quickly or else you'll end up paying a whole lot in interest layer one. If you want to consider refinancing, that is also a viable option. In terms of scaling to three to four multi-family properties, you could really start using the equity that you do have to your advantage. Whatever market you are looking, I'd consider putting out a cash offer. If you feel ambitious, you could try a BRRR strategy adding additional equity to the subject home and then taking equity out of it to pay off either the HELOC or if you decided to the refinance the primary residence. I'd only consider refinancing the primary residence for the best rate.

Hi Sam, I would say that you should consider leaving this deal if you are concerned moving forward.  I understand the seller wants to move froward, but if they are not willing to give you information on the asset that you're purchasing, that is certainly not a good sign.  While it may possible in older homes, water damage is still a concern and raises health concerns.  I would consider consulting with a real estate attorney about the disclosure requirements.  They will probably be able to provide a quick answer in regards to this.  I'm sorry you are going through this.  Some people just can't do the right thing when it comes to money.

Hi Roy, I would reiterate what has been said so far.  If you do not feel comfortable pursuing additional growth, I'd wait it out just a bit.  You have decent cash flow that you'll continue to accumulate, which you could put toward a deposit later for another property.  I'd also suggest considering a partnership if you feel comfortable with that in order to reduce the risk completely on you.  This would obviously require you partnering with an investor that you trust.  While this may be risky in other ways, you'd be able to continue to grow your portfolio without taking as much equity from your income producing properties and possibly sustain your continued cash flow with them.  In the meantime, you are in a great position. 

Hi Jonathan, thank you for the post!  It's amazing how much you have scaled over the last five years.  I would love the opportunity to try syndications one of these days. 

Hi Josh, it doesn't appear that the Broker representing the seller is at fault here.  There should have been clear instructions regarding how those escrow funds would be released if it came to that.  The seller's refusal on signing off on releasing those funds is their decision entirely and definitely unfortunate.  It may be best at this point to just seek the guidance of an attorney to see what your options are moving forward.