All Forum Posts by: Danielle Jackson

Agree with advice thus far. If you can keep it for a long term hold, then do it.  If its cash flowing and you don't need to sell it then I would probably hold on to it. What kind of equity position are you in? 

Now you did only mention rent vs mortgage - but there are obviously other expenses to factor. Ensure when you do it still makes sense, and you are setting aside reserves as needed. 

Good perspective from @Lucas Martinez. They are investing because they want access to the opportunity you have sourced.

I can't speak to which structure would be best for your situation, but I can promise you that it is critical to spend some money up front to get your agreement in writing. Don't put yourselves in a situation where you are making decisions under duress that could have been determined up front (and in writing). Make the legal document the enemy, not one another. Make sure financing/roles/splits/expenses/exit - everything is mapped out. Paying for an attorney's expertise is worth it if you truly value the relationship. 

Where are you looking? 

Congrats! What a beautiful property. 

Before diving into numbers, the "small town" always makes me a bit weary. When you say small town, are there multiple smaller businesses to support the demand for a 12 unit building? If it's one major business/plant that is driving the rental demand I might really dive into that business. I've heard some really tough stories for landlords during COVID trying to backfill units when there was no demand bc the one major business/plant was closed. Just my two cents. 

Try connecting with a broker who works more closely with investors. Not sure where you are located, but imagine you can identify a ton of referrals through this forum. There are bank statement loan options, and DSCR loan options as well. Don't give up yet.

I look at national economic policies (inflation & interest rates), local market growth (population/rent/job), inventory behaviors (including absorption) and try to track markets where there are institutional inflows. 

Great perspective @Bjorn Ahlblad.

@AK Fowler  The problem is theory and application are two very different beasts. The application requires grit and discipline. Fear is certainly something that could be holding you back. When you are ready to dive in....just make sure you are ready. I certainly wouldn't rush that first investment just to say I got it. Back to that discipline piece in finding the right deal for you. 

You will be able to use the rental income for future investments, to help offset your liabilities.