All Forum Posts by: Jake Baker

@Kent Ford

I agree with @Ryan Konen regarding areas like San Antonio’s outskirts, parts of Fort Worth, and growing cities like Tyler and Lubbock, which are becoming popular due to relative affordability and job growth.

We will see an interest in smaller metro areas where prices are more accessible and a surge in new construction aimed at entry-level buyers. For first-timers, leveraging programs like down payment assistance or FHA loans can make a big difference. It's still a competitive market, but Texas can remain a great place to buy with the right strategy.

@Tiffany Da Silva

At the bare minimum, you should do the following to make your bookkeeping easier:

1. Dedicate one checking account and credit card exclusively to real estate. Keep personal and business finances separate to create less headache.

2. File all receipts in a dedicated Google Drive folder. Digitize physical receipts for easy storage and use a consistent naming convention for easy sorting - 2024.03.25 Home Depot. 

3. Maintain proper records, such as contracts, settlement statements, and promissory notes.

4. You can track income and expenses consistently using software or spreadsheets.

As you scale, if bookkeeping isn't fun, consider hiring a bookkeeper for a couple hundred bucks per month. This is often one of the first things a real estate investor will outsource.

I agree with @Kevin Sobilo about Profit First. That is the best way to manage your portfolio!

@Keonhee Cho

Focus on emerging submarkets like areas outside Austin, like Round Rock, Hutto, or even Killeen. They often have more affordable properties with cash flow potential. Similarly, suburbs around San Antonio, like New Braunfels or Schertz, could offer good opportunities.

To successfully BRRRR, you need to leverage local connections. Join local REIA groups in Austin to connect with wholesalers and investors with insight into off-market deals. This can help you find properties below market value, which is critical for BRRRR.

@Najeh Davenport

I agree with @Brian Teeter to challenge the appraisal. Compare the comps from both appraisals to see if the second appraiser used outdated or less relevant data. If you find discrepancies, you can submit a rebuttal to Kiavi with supporting evidence (e.g., better comps, rent roll, market trends). It may not always work, but it's worth a try.

Consider a Portfolio Loan. If you're refinancing six properties, bundling them into a portfolio loan might help you consolidate debt, reduce rates, and avoid individual property issues like this.

Negotiate Closing Costs or LTV with Kiavi. When I tell lenders I am backing out of the refinance, they often take things to their higher-ups. They can find some wiggle room!

It’s a setback, but with persistence and leveraging other lenders, you should be able to move forward without taking too big a hit. Good luck, and let us know how it turns out!

@Roy Logan

It sounds like you've made some great moves in real estate investing—your BRRR strategy is paying off with those solid returns.

At the bare minimum, you should do the following to make your bookkeeping easier:

Dedicate one checking account and credit card exclusively to real estate. Keep personal and business finances separate to create less headache.

File all receipts in a dedicated Google Drive folder. Digitize physical receipts for easy storage and use a consistent naming convention for easy sorting - 2024.03.25 Home Depot.

Maintain proper records, such as contracts, settlement statements, and promissory notes.
Additionally, you can track income and expenses consistently using software or spreadsheets.

As you scale, if bookkeeping isn't fun, consider hiring a bookkeeper for a couple hundred bucks per month. This is often one of the first things a real estate investor will outsource.

@Tarek Emam

Joe Asamoah is highly respected in the industry, and his strategies around BRRRR and Section 8 investing are well-regarded.

However, with any course or program, it’s essential to approach with a bit of caution. Ultimately, courses can be great for structure and guidance, but real learning often comes from doing and connecting with experienced investors actively succeeding in your niche.

For many, podcasts, books, and courses are just entertainment. 

I recommend finding local meetups to attend. https://www.biggerpockets.com/forums/521 I have found all of my best connections at local meetups.

@Ana Mills

I agree with @Andrew Steffens. If you plan to scale at all, that will result in an excessive number of accounts and cards to keep track of. Scan receipts and label them with the appropriate property.

For our bookkeeping clients, we advise using the Profit First framework. This is great for small businesses and entities with multiple properties. It keeps all operating expenses in one account and income in a separate account. 

@Heidi Fahringer

Real Estate Expertise - Are they familiar with real estate-specific tax strategies, such as depreciation, 1031 exchanges, and write-offs for repairs, property management, etc.?

Experience with Multi-State Taxation - Do they have experience handling income from out-of-state properties and navigating California's specific tax requirements for LLC members?

LLC Tax Treatment - Can they advise on the best tax classification for your LLC (e.g., partnership vs. S-Corp) to minimize taxes while maintaining compliance in Indiana and California?

@John Berj

If cash flow is a top priority, factor in HOA fees (common with new builds) and confirm rent comps to ensure the numbers work. Also, consider builder incentives like rate buy-downs or upgrades if they're not open to price negotiations.

@Alberto Vargas

Congrats on completing your remodel. There are plenty of investor-friendly lenders here on BiggerPockets who can help you exit your HM loan. Given your credit score and the equity in your property, you'll likely want to explore a DSCR (Debt Service Coverage Ratio) loan. These loans focus on the property's cash flow potential rather than your personal income, making them ideal for investors.