All Forum Posts by: Curtis Thygerson

I know Limaonecapital just came out with a new product specifically for the BRRR method, Basically they give you a fix and flip loan based on the 90% of the purchase price and then change it into a long term 30 year rental loan based on the ARV, so it is possible to get all your money back and more, and only have one closing and not wait for it to be seasoned. I've used Limaone before, not for this loan, they are pretty good. just maybe something to think about.

I would be working as sort of manager, helping things run smoothly. I guess I would learn more management skills and possibly learn more about real estate financing. 

my wife definitely has skills ;) 

But overall I feel like I have developed a lot of the skills I need through the house flips. I'm sure that this though would give me an even better feel for how to do things from out of state, with a team, and at a large scale. 

Hi guys,

So I'm really torn between a couple decisions here, I have been flipping houses for the past couple years with marginal success, have learned a ton and feel like as I keep going I get better and better at it. That said my wife is pregnant and wants me to get a job for a couple years to build a little more cushion in the bank before continuing. Our long term goal is to buy enough units as rentals to retire, we are aiming for around 100 units in the next 15 years. 

Ok so here is the decision I have to make. 

I have a job offer from Freddie Mac, for around $75,000 a year, and we can live with my mother-in-law to and live super cheap. So all in all the work wouldn't be super related but we would be making some good money.

I have another job offer from a real estate investor who BRRRs properties out in Kansas, I would be his project manager on the ground in Kansas. He is doing exactly what I want to be doing in the future, he lives in San Diego and invests in the mid west from afar where the purchase prices are lower and the 2% rule is readily attainable. I am sure I would be getting awesome hands on experience finding, managing, and renting out properties and such. The bottom line is though, he wants to pay me a base salary of around $40,000 and then add some commissions which I can expect will be anywhere from 10 - 20K. So all in all 50-60K but no insurance and I would have to pay self employment tax, so in reality I would end up with 40 - 50K. Oh also I would have to pay more in rent so that would be another expense difference of about 8K 

So Great experience for half the pay? or get more pay and have more capital to just try doing it on my own with the help of other resources I find (youtube, biggerpockets, local REITs)

I'm planning on working for 2 years either way, so i believe I would have around $80,000 more after 2 years working with Freddie mac. 

I would love to hear your advice,

Thanks!

I agree with Sam, I have been quoted by several credit unions that their minimum loan amount is 25K and another at 35K, so I know they exist, I would just call some small local credit unions and banks and ask them about their min. loan amount. 

I've found a nice city that has an old couple selling there rental portfolio, each duplex they are selling is around 50,000 and they rent out from 1000 - 1300 dollars a month (both sides added together). I have enough cash to buy two out right, but I wonder if its better to leverage my money and buy seven or eight, so that if I get stuck with a bad home I have many others that support the bad one. But if the town really isn't that great all of them are in the same place. I would love to know other peoples opinions about starting small one or two rentals, or jumping in with seven or eight.

Hi @Ted Guzman. First off great advice from @Steve Theobald, that's a great plan for investing in Utah. 

If you want a lot of positive cash flow from your rental properties I would suggest investing out of state. I know a lot of serious rental investors that get big monthly checks. They all buy properties in the mid-west, states like Ohio, Indiana, etc. Properties there are much cheaper than in Utah. You can get a nice house with low vacancy for around $60,000 sometimes even lower. and those can rent out for $600 to $700 dollars. Compare that to my backyard in Provo where homes are $250,000 and rent is $1100 a month. I could buy 4 homes in the mid-west for the same price and get $2400 a month easy. 

Just something to think about. If you want to learn more feel free to PM.