All Forum Posts by: Eric Blair

@James Hamling thanks for that awesome reply. So some follow up questions 

1. Are you suggesting that people shouldn't hold rental property for more than 7 years?

2. If so, why would an investor want to bring down their amortization if they plan on selling within 7 years?

I ask because I have a property approaching 7 years but this property has a 2.75% rate and it's a cash flow cow. It's got $90k left until pay off but it has $70k equity built in

So like you said, I don't plan on living here for 30 years. I could see 5 years, maybe a few more unless I get some awesome job opportunity.

I am struggling with scaling. I can't figure out how to scale more than 2 properties without leaving my market. There are virtually zero multi family properties near me. There are a few in some very very rough areas but none anywhere decent. I would have to invest out of market and I just don't see how I can do that while working full time and low capital  

I like to gamble with options contracts and even I wouldn't use a credit card in this manner lol

But I do have a question. I wanted to get your opinion on my strategy. I am buying a home using my VA entitlement. It will be my primary. Instead of doing a down payment, I am buying down the rate via points. I figured why do a down payment and have a high rate when I could do zero down, pay no PMI and buy down the rate to 5%. What are your thoughts on this?

@Stephen Morales good points. I'm just brainstorming ideas at the point 

So with how expensive real estate is and how high the rates are and also extreme compition with investors with much deeper pockets than mine, I was thinking of maybe getting a duplex built. 

There aren't really any multi family homes in my area except for the bad parts. In order to have anything built I would have to hire out 100% of the work due to already being full time W2 and family with young kids. So basically just finding a contractor for a custom duplex. Maybe something bigger. Would the cost of the build, land and rates even be worth it? Renting wouldn't be an issue. The issue would be whether or not I cash flow, break even or end up cash flow negative. 

I am just trying to come up with some strategies since it's been years since my last deal. Thanks all!

Hey OP I can give advice but can't help you find a home. So I live in Prattville and can point you to some areas. If you don't care about schools, then you can live in Prattville, Millbrook, or Wetupmka. Personally, I like wetumpka because it's pretty. School wise though Pinelevel and Holtville will be top choice for public schools in the area. I only have a single rental in Prattville and did it exactly like you are wanting to do. But I got lucky and did it pre covid so it was cheaper. But I got a house and it didn't need a whole lot. Lived there for a couple of years and then moved. It's a solid rental. 

Also I would avoid buying in Montgomery. I was a cop there for a number of years and I've seen how bad it can be. Although tons of people build portfolios there, I just can't bring myself to do. Maybe if I didn't have kids. Anyways, feel free to send me a DM. You won't struggle finding under $300k

@Dustin Woodley Hello, I live in Prattville. Would you also be willing to help me find a property? I'm basically in the same situation as OP but no longer in the military. I'm looking to do conventional or possibly use my VA for the same reasons as OP. Thanks!

I'm gonna be honest here and that may not jive with most property owners. I'm in cyber security and very much take digital privacy seriously. Even if having a camera is legal, I would not do this. Privacy laws in America are seriously lacking. I just personally feel this is beyond wrong. 

Now from the tenants perspective, if I were in their shoes, it would be a cold day in hell that I get recorded and possibly monitored 24/7. Let's just say that the cameras would suddenly stop working with zero physical evidence to point the blame

Before I comment, understand I only have one property and am totally NOT a professional

But that being said, I'm kindve like you. I've got kids and a wife and we don't really want to move over and over to fix build our properties. It's too much. Plus I need savings for emergencies. So we are staying put until I can just save enough to buy a flip/ rental. Just my 2 cents

@Lindsay Davis thanks for the reply! Yea after reevaluating I've decided to pass. There's gotta be a better deal so I will keep searching. Thanks for your input!

@Seth McGathey thanks for your response! Also I love that idea of paying the HELOC back and drawing from it if I need it! I didn't even think of that. That's why I come here. That credit card thing sounds awesome. I'll see if my bank does that. As of right now I have not found a cheaper house. I'm ok with holding for a year or 2. I just need to get my 2nd property since it's been 4 years since I bought my first one