All Forum Posts by: Eric Schultz

@Jack Woodward

A single story 3/2 with garage and some initial rehab in what appears to be a B-class neighborhood (just a guess). Looks to be promising...

Congrats on taking action.

@Drew Osifalujo

I second the advice on controlling the materials, meaning you make the direct purchases on all of the materials. Have a scope of work sheet prepared and get labor only quotes for apples to apples comparison.

This strategy will allow you to see who is throwing in the fluff (mark up) or has the higher labor rates.

I design build on a commercial level and transfer these same methods to my personal residential investment projects.

Seasoned real estate agents, insurance agents and property managers that service your market will all have a contractor contact list.

@Evan Carrico

Your plan really depends on the applied level of these factors: time, capital, knowledge, skill set, network, effort and maybe some luck.

Assuming you are investing in a favorable market for short term rentals (STR), you could use STR partnerships or STR arbitrage as a business model to generate much higher monthly cashflow per property and reach your FI goal in less than a few years with fairly little capital to start with. This would be in comparison to the lump sum down payments needed to financing house hacks or the traditional long term rental property over a much longer time period.

There are so many strategies out there. The speed of your success does depend on how active or passive (level of effort) you want to be along the way as well.

@Aaron Romine

Great advice shared here! Especially agree with #3. It invites a different mindset.

@Giovanny Vizcarra

There are several HELOC products out there with different terms, but the ones I have used typically have a withdrawal / utilization period of 10 years on interest only payments. Then the LOC terms require you to start paying down the principal balance starting in year 11. In many cases you have years 11 - 20 to pay back all of the principal. There are opportunities to refi the principal balance into a fixed rate before seeing out the end of the term, otherwise the LOC balance will be on a variable rate.

@Justin Phillips

Sounds like you are practicing a form of velocity banking method. Nice!

@Kate Andreeva

IRR may be a better calculation (via Excel) if you are really looking to compare this real estate move versus stocks or other investment opportunities.

@Laith Faouri

You need a few developers to chime in here regarding the funding / financing.

Maybe share more details on the property and scope of the improvements.

Feel free to reach out if you need to test any ideas on the design and construction. I’ve done several design build projects over here on the west coast.

@Lane Kawaoka

Curious to how you have come up with that net worth threshold to buy in a high priced market?

@Gabriel Bures

You have some great skills that will translate well into REI my friend. Sounds like you now have some time to dive deep and educate, network, study markets, look for deals.

What are your constraints right now?

Capital to invest?

Deal flow?

If you did will financially in your previous W2, maybe you can go the passive investing route (limited partner in syndications, private lending to other investors, etc.) and invest some of your W2 job proceeds while you learn the ropes to actively invest.