All Forum Posts by: Bryan Stengel

Hi Brad, I believe a 401k loan may be helpful in terms of putting toward a down payment if needed.  The interest that it does accrue is money you don't lose, but rather it does go back into your investments.  However, I wouldn't say it is a complete tax-free strategy.  The money that you end up owing to repay the loan over the 5 year term is now post income tax money unlike how you traditionally are supplying your 401k with pre-tax money.  In other words, you will be taxed twice on the money that you do take out essentially.  You will also provide the whole amount if you plan on repaying the loan in full beforehand.  Money you put in and then when we hit 59 years or older, money that you end up withdrawing. 

Hi John, I also rely on a property manager for the the fact that my properties are out of state.  Any issues that occur with the property can easily be solved with the property manager working nearby.  If I lived close by, I would certainly handle such issues on my own.  I have strongly considered managing on my own in the past.  Nobody will take better care of your property than yourself and nobody will be as invested into as yourself.  I would recommend that you do your research and seek out the best property manager in your area.  I have noticed that as companies they grow, their quality and attentiveness tend to decrease.  Communication is highly important to me as well.  I'd like to get weekly updates if we have a vacancy or ongoing issue.  It is definitely worth it to have if you can't be nearby. 

Hi Marc, I used to not let pets at my property for reasons being that I was worried that they'd cause damage.  However, I eventually started to let pets in after my property manager convinced me to do so.  I will say now I think humans are more likely to damage your property than a pet.  By accepting pets, it not only has it increased my cash flow per stay, but it has opened up my place for more bookings.  I have seen a tremendous difference in terms of how my property performs now. 

Hi Max, it all depends on how much liquid cash you have of course.  I would suggest research areas in Alabama that you'd like to invest in.  Build your systems first before you decide to invest though.  I would connect with a property manager that is trusted and has experience in the area.  Fortunately, they should and usually do have local contractors in the area that they turn to for maintenance.  They may cost approximately 10% of your rental income per month, but may be worth it when you are residing out of state.  I invest out of state and don't see any other way of managing my properties without one.  It could be stressful if there is a plumbing or heating issue and you're several hours away.  I'd also suggest a house hack to depending on where you reside as well.  Depending on your current living situation, you could do both.  As most investors seek to do in real estate, we want to generate positive passive income through multiple avenues such as equity, cash flow, and even tax advantages.  

Hi Christine, what ever happened from reporting this salesperson to the MLS? I would like to see about this Levitt home and whether this listing is legitimate. Any suggestions?

Hi all, I appreciate the information regarding this salesperson.  There was a Levitt home that has been on the market for approximately 130 days and it might be the cheapest home I've ever seen listed by Sowae Corp. with Eric Lee as the salesperson.  I had a lead inquire about this property and the listing already says multiple offers, but then 130 days on market so far.  It didn't make much sense to me.  

Hi Nick, as mentioned before if you put a greater deposit down, you could get a better rate as a result.  I believe up to close to 40% down with a 720 or greater credit score on a conventional loan product could give you the best interest rate.  I would definitely consult with a lender first since I am not completely sure.  It depends on the market and whether you'd like to hold onto more liquid cash to put toward the next deal.  I am not too familiar with the Columbus market.  I think these type of properties do cash flow well from my understanding.  However, what I would suggest based on your expertise as a contractor is going into a semi-fixer upper and make minor repairs to boost equity as well as savings.  You could always later cash-out refinance for your next deal too.  

Hi Michael, I'm sorry to hear about your wife and what she has gone through.  It is nice to hear that she is doing better now.  In regards to your offer, I am always willing to learn more from people who've been there and done that.  I have not done any flips yet.  I'm frankly afraid of them to be honest.  Also, I have never done any seller financing neither.  I am still rather new in the investing world, but I know with enough base knowledge and liquid capital of course, I'd be willing to pursue it for sure.  Looking forward to hearing from you.

Hi Celine, I can't really speak to the midwest as I just don't understand the area as well. I live on the East Coast and I too am an out of state investor primarily since Long Island is a particularly expensive area as a whole to invest in. I invest in Pennsylvania where I find to be some opportunity there in terms of cash-flow particularly with multi-family within the $300,000 range and even lower. As a first time out of state investor, I would not do a BRRRR to start until you build your contacts and systems there. There is a lot of risk involved with that and it could turn out to be a problem with the wrong people in place. Feel Free to reach out if you have any questions.

Hi Joseph, I would look into going the seller financing route if that is an option in this case. It sounds like you are in a great situation though currently. It also depends on state of the 6-unit property that you are interested in purchasing. Is it already fully occupied? Does it require any additional rehab costs? You probably know this already, but you don't want to put yourself in a situation where you are struggling to keep the lights on in the event that you put all of your equity into this home and can't take any out. If there issues that need to be worked out with the 6-unit property, I would utilize that as a negotiating tool to work out a seller financing strategy with the current owner. She is already is a customer of yours, which means trust has been built already. Another strategy would be to partner with another investor who could provide more liquid capital and how obtain a DSCR loan on this property.