All Forum Posts by: Jack Mawer

Congrats on getting your first deal done! Yes cash is great but usually not feasible for scaling - there are plenty of hard money/private lenders out there - I would just be cautious of who you are interacting with and confirm they are legit before getting started - happy to connect! 

I would agree with @Eliott Elias on this one - focusing on smaller secondary markets can be beneficial, especially in a market like todays. Killeen is small but growing in density and quite undiscovered for investors. An area like this provides for great cash on cash returns, as well as stable appreciation that you may not be able to obtain in more saturated markets. 

Welcome Adrian. Congrats on getting into real estate investing and best of luck! 

Both of these options (selling or raising rents) will benefit you - it is truly up to you on what would make the most sense - raising rents will definitely drive up your cash-on-cash return on a monthly basis but selling would also allow you to acquire a large sum of money that can be used for new construction so that you can maintain your current reserves. Again, both solid options and either one is much better than received below market rent. 

I would highly recommend Champions or Aceable Agent as mentioned above. Although you may think these programs are pricy, they set you up for success to pass the RE exam the 1st time. Both programs also have a review course that is very beneficial and allowed me to pass the test with minimal studying.

Are the two exit strategies mentioned "selling" or "refinancing" after rehabbing a project?

Congrats on obtaining your real estate license and gaining investing knowledge along the way! I think that the concept of investing can be intimidating for sure especially in a market like todays. However, this could also be a huge opportunity to get your feet wet and start learning through trial and error. I think that focusing on the mid-term rental game is a very good start - traveling nurses and things of the sort are becoming increasingly popular these days. In addition, you can obtain more cash flow with higher rents this way rather than having a tenant who lives there year after year. I would keep educating yourself and pull the trigger when you feel comfortable enough with your knowledge and reserves. Best of luck and happy to connect!!

Are you clear on what type of financing you are looking to obtain? If you are looking to refinance a rental property and want a simple process, I would highly recommend using a DSCR (Debt Service Coverage Ratio) loan. This will solely look at your FICO score as well as the property cash flow (asset-based lending) and allow you to scale your portfolio as your DTI will not take a hit.

Congrats on wrapping up on the rehab for your BRRRR! Chattanooga is a great place for a rental, would love to learn more about your plans moving forward.

Have you looked into delayed financing/is it an investment property? There are some lenders out there who can treat a "refinance" as a "delayed purchase" if certain requirements are met. Usually need to have a strong FICO score, be 90 days or fewer from the purchase date, strong cash flow, etc. Happy to discuss further if this sounds like something you are interested in!