All Forum Posts by: Corby Goade

Sounds like you don't have realistic expectations for your market and ROI.

I talk to newbies about this same thing all of the time- they've read a forum post or connected with some guru who has given them unrealistic expectations for what the market can do TODAY and it creates fear and inaction. 

So worst case senario in your analysis above, you are making an extra $220 per month, someone else is paying down your debt and it's growing in value over time passively?

For what it's worth, those numbers would be a killer deal in my market and I'd buy it myself. 

I'm not saying you should buy THIS property, but I am saying this is a marathon, not a sprint. Wealth comes from holding assets over time and letting them grow and mature. If you are only paying attention to what they will do on the first month, you'll be sitting on the sidelines forever. 

HELOCs are always they best option for value add deals, in my opinion. Done that exact same thing many, many times. 

Cheap or free to close, no cost at all if you don't use them, interest only payments and they become available to you as you pay down the debt. 

None of those other options do any of those things and you'll pay higher interest rates for them as well. 

Welcome! 

Most people won't like my answer, but in order to change your life, you've got to break some eggs and be a bit uncomforable. 

The first few properties I bought, I was pretty much broke, so I used a HELOC as my reserves as I built up capital and equity in my properties. I did have to tap in to in a few times for a few dollars here and there, but I focused on paying it off asap.

If you don't have huge reserves or cash flow up front, build equity and leverage it for your reserves as you grow. You can get to a point where you have the reserves in cash, but you have to start somewhere, so don't think that you need a ton of cash before you take reasonable action. 

I think house hacking and investing in your own back yard is the best way to build confidence and mitigate your risks. Lots of people think that they can make things less risky by investing elsewhere to increase their cash flow, but lack of resources and relationships is a HUGE liabiity. 

That being said, connect with a local agent who works with investors in the markets you are exploring. Someone actively investing and doing deals in those markets will understand the nuances much better than you will from a distance. 

 But what makes THIS property unique? Sounds like you could buy any property and get the same appreciation. 

Absolutely! I've done that many times, HELOCs are the best source of deal funding there is. 

BRRRRS will work anywhere- least the first few "r's."

The first part of a BRRRR is all about building equity through value add. You can do that in any market at any time on many differet types of properties.

The challenge right now is the refi piece- with investment loans in the mid 7's, making a property cash flow positive after refinance can be a challenge, but you'll have that exact same challenge in every town. 

I'd BRRRR in your own market, where you live. You can mitigate risks substantially that way. If you can't refi to make the numbers work, you simply have a profitable flip and you can roll the profits in to your next deal.

Best of luck!

It's funny to me that MTRs people only talk about these mythical "travel nurses," as if that specific profession is the only way to make MTRs work. 

Sure, there are plenty of traveling nurses out there, but LOTS of people travel for work and need MTR contracts for longer periods of time. 

In my market there is tons of building going on and developers bring in contractors for months at a time and pay them stipends- electricians, engineers, framers, whatever. 

We rent MTRs to people building custom homes that won't be finished for 3-6 months all of the time. People who are having major renovations or repairs done on their existing homes. 

It doesn't hurt to know if there's a demand for nurses nearby, but it's even better to know what the demand in your market is for MTR product outside of that. 

This is not a unique situation- tenants pull this kind of stuff all of the time. I had refuse to allow us access twice last week. 

You aren't managing professionally so they aren't taking you seriously. If you already know they are violating your lease and you aren't doing anything about it, they're learned the lesson that you've taught them. 

Post notice that you will be entering the property- give them at least 24 hours, but more notice is better. Then do what you need to do. Whether they want you there or not is completely irrelevant. They don't have to agree, you are only required to provide notice, not get compliance. 

Please hire a professional property manager- there are good ones out there. They'll enforce their lease and keep your investing journey much more passive. 

Best of luck-

...Or find yourself an experienced, investor friendly Realtor. 

No offense, but if you have to ask this question, you'll be much better off hiring a local pro to guide you.