All Forum Posts by: Daren D Wagner

Are you looking to have a PM run the whole thing or are you looking to self manage?  I have a few good contacts, some of which only work with PMs, so it depends your strategy.  Let me know.

If your looking for a solid PM who manages turns and gets units rented out quick, SUNCOAST PROPERTY has done an amazing job.  We highly recommend them.

* I second Mario Brother though

Great post.  Jacksonville is a wonderful market.  We started in 2018 in Jacksonville as well.  With the growth in the area and some great work from our agent we have been able to grow to 9 units in the market in just about 20 months.  Still havent crossed your 7 figure threshold yet :) but should with our next property.  

It is really good to see someone having the same success in that area.  I really think there are some amazing areas there around the city that have good price to rent ratios and huge upside for icing on the cake (appreciation).

Keep us posted on deals you have in the area.  Many hands make light work :) 

I had the same thoughts too.  We are at about the same level with our 6 properties too.   After all said and done we are at about $100-$200 a door.  Thinking about FIRE I love those numbers.  

In the past for us it more comes down to CoC return. Example, we have one with $105 a door, but we used a Fannie Home-styles loan and had to front 0 of the rehab and turn cost so our CoC is great. But $105 doesnt move me towards FI as much as $250 or $300 would.

 Have you been looking into investing out of state Elijah? 

I highly recommend it if you have high prices with low rents (compared to prices) like we do here in Salt Lake City. David Greenes book on long distance real estate investing improved my strategy immediately. 

This would be my point of view in your situation.  We live out here in Salt Lake and our numbers are pretty rough for buy and hold, much like some places near you in CO, unless you can put down put down 25% or more, which is hard on properties north of 400k.  

What we did was look at the potential returns on house-hacking a MFH and what that house would cash flow at AFTER we moved on from house hack (renting all units) as well as how long it would be before we could move onto our next house hack (because cost for a down payment is so high here).  Then seriously take those numbers and run them against snowballing in a lower priced market. 

Important to consider: 

Vac rate in both areas, market appreciation, market depreciation potential (what people dont talk about), returns in both areas, class of tenants in both areas.

If you can purchase 2 homes (or MFH) in a place like MSP or one in two different markets and vac rates are low, cash flow strong, long term that may be hard to beat.  Then you can use the forced appreciation on both places to potentially BRRRR into 2 more properties, 4 total for your 2nd year (hence snowball).

@Caleb Heimsoth Wow good info.  Thank you.  You know your market well!

@Josh R. I love the thoughtfulness on this deal.  Commercial loans are must more flexible than residential and allow for some FUN CREATIVITY on our side as investors.  I love the structure you built.

Two quick questions...

What types of tenant class are you seeing in Rocky Mount? 

That are have high vac rates? 

In our area low rent areas tend to struggle in both these areas.  That is why we have been investing out of state the last 2 years.

We need advice:

We own our rental free and clear. We want to expand our portfolio using the equity in current rental. We have two ideas. Take out a line of credit on rental (80% ltv) or do a cash out refi (80% ltv). Now before you answer there are important things to consider. Home value is 50k, we have called banks and guidelines for "cost of loan" is too high for the amount of loan in our state to do a cash out. So we would need to go to a portfolio lender with higher rates if we go that route. With the LOC route that does not apply. We would have a 10 year interest only draw, then 20 p&i payments. This would keep monthly payment low for ten years and allow us to sell and trade up in 5-8 years before payment ballons. We would appreciate your thoughts?

 Where you able to do that since you have an llc in another state? I really like the idea. Thanks.

Thanks guys! Appreciate the info. Are the tax benefits the same if we set up an LLC or not? if we just do umbrella policy and no llc do we still get all the same write offs for travels, expenses and so forth? Thanks!