All Forum Posts by: Danielle Wolter

I can't really speak to what the right price point would be, as I'm not familiar with the area. Obviously, you never want to have negative cash flow. Also, 4% for vacancy is probably a bit low. At 4%, you wouldn't even cover 1 months rent after a year. You'd want at least 1 month in the bank to cover turnover, if not more. Also, I'm not sure how you arrived at the down payment of $9K - it seems low for a $300K loan on a rental property. Also be sure to add in property management unless you plan to self manage (10%). Without knowing more about the property itself and the ARV, I can't really add much more. I'd keep looking.

@Joe T. I would also recommend talking to an accountant. I'm an accountant myself in my day job, but still need the professional advice of someone specializing in real estate from time to time. And accountant should at least be able to help you get things set up, and then you can choose to keep using their services or not. That's my recommendation, accounting can be tricky sometimes depending on your situation. And an accountant can help you maximize tax benefits as well. 

@Kimberlee Nadine Hill Welcome to BP! Honestly, all three options sound decently well thought out. I know a lot of first time investors start with house hacking (your option 3). I think it's a great idea for getting started. I'm also in a high cost of living area (Southern CA) and have chosen to invest out of state. I haven't bought my first out of state property yet, so I can't speak to it, but the idea is a little scary, I won't lie. It would be helpful to have family, or be in driving distance of the area so you can be more familiar with it. Either way, good luck!

@Alessandro A. There are benefits of using other peoples money, I just prefer cash. That said, I always make sure I have plenty of cash reserves as well. I like to keep 6 months of living expenses in cash reserves just in case. 

If you're planning to use the BRRRR method I would use cash. Some other on here may not agree, but I believe buying with cash is #1 cheaper, #2 easier. In theory, after you rehab and rent, you'll be able to do your cash out refinance, and just put your cash right back in the bank for your next property instead of having to pay back your HML.

Personally, I would not buy a property that didn't cash flow unless it was in a very high appreciation area. Even then, I probably still wouldn't do it. Seller financing is great to come by, but I'd only do it if the numbers work out so I was positive every month after expenses.

Welcome to BP @Matthew Cramner! It's great that you're able to focus your efforts on real estate. I'm sure your ability to plan and create workflow processes will help you greatly. Good luck!

I'm up at 3 AM on weekdays and 5 AM weekends. The morning is by far my most productive time. It's quiet, peaceful and my brain works at top speed. I get more done before 11 AM than most people I know (I'm probably hanging out with the wrong people LOL). I get a couple hours of work done before I head to my 9-5, then a few hours of evening work before heading to bed at 9 PM.

That's fraud and I would definitely not do it. You will have to sign saying it is your primary residence and you plan to live there for at least 1 year.

I'd definitely go with vinyl for it's durability. Plus, it looks pretty decent.