All Forum Posts by: Erika Butler

I would definitely stick with it! Especially since you have the luxury of your parents paying for this. I did not have that luxury, but I'm still grateful I stuck with it. I have been in the real estate industry for 6 years now, but I am still so thankful for my degree. You are still so young and have plenty of time to dive into real estate once you finish school. 

Stay local. DFW is a fantastic area with lots of great appreciation so figure it out in your area first and then expand. You are correct on the cash flow issue here, but that’s not necessarily a bad thing. Just don’t plan on the cash flow retiring you. It’s the appreciation you get from the home that will eventually retire you. It’s a get rich slow play and there’s nothing wrong with that! 

Fear will get you nowhere. That in itself would scare me enough to just jump in and do it, otherwise you will get nowhere. 

It has its pros and cons for sure. You have the potential to make more income, but it requires a lot more work from you. You are constantly looking for people to rent rooms because the turnover is higher. You are also the one that has to cover the utilities included wifi and lawn maintenance. I've also noticed that these type of tenants tend to not care as much about the homes and they never get cleaned so they eventually just look disgusting. Personally, I think it's worth taking a little less in cash flow every month (it's really not much less), but in return you get tenants that actually take better care of the home and it's less work on your part.

@Monique Pett lol yes that's what I'm referring to! Homes are too expensive in Dallas for 13k to be the down payment here if you planned on purchasing it with hard money for the BRRR strategy.

Yes! That's the beauty of non-qm loans. Since they're qualifying the property, not you, it doesn't go against your DTI. Meaning, the amount of homes you can now purchase are endless! Only down fall, is the terms aren't as a good as a transitional loan, but they're still pretty competitive. RCN capital and Temple View Capital are all national lenders with really great terms for non-qm loans.

I suggest going to a different bank. From what I've seen, it shouldn't 100% count towards your DTI since the tenant is paying the rent plus you should absolutely be able to classify the cash flow as income. Your other option, is to refinance the rentals you do have with a non-QM loan to get it out of your name. Then it will no longer go towards your DTI.

Depending on where you plan on investing, 13k won’t get you very far as far as holding a flip. But again, that depends on the price point of the homes you’re buying. I’m in Dallas, and there’s no way I could hold a flip for just 13k. I would suggest for you to use that money and focus on ramping up your marketing and wholesale a few until you build up a little more capital. 

First, why are getting your ARV from your contractor? I only get rehab bids from my contractors. But I agree with the others that it's just not enough of a discount. The reason being, investors have so many costs associated with buying and holding a flip on top of the risk. It's all factored in that discount price of 30% of its value.

Have you asked the tenants if they’d be interested in purchasing it themselves? You be surprised sometimes