All Forum Posts by: Jared Hottle

I agree with @Brett Voorhees I would work with an agent to get comps and get connected with a local bank who understands the BRRR strategy and what you are trying to do. I would talk to the lender to see if a CMA or income approach matters more to them. If they put a premium on what the property rents for I would look at raising rents or getting current tenant out making repairs/updates and getting higher rent.

Any online tool will not be as good as a realtor or doing it yourself. Every square foot is not created equal. If you are looking for quick and dirty comps and not asking your agent I would suggest using tax assessor data or zillow recently sold and running comps yourself

@Caleb OConnor Welcome to life as an agent. Some brokerages may not like you having a full-time job but if that is what is needed to pay the bills and get to the next stage in life then lay that out there and find a brokerage that works best for you. 

As for being committed and finding success early. I believe the key is to stay consistent every day. It may seem minimal but it is much better to do a small amount of prospecting each day then alot once. Shoot me a message would love to be of assistance. 

There are a few things I would do to drum up investor clients looking to purchase an investment property:

1. Network: I would reach out to my personal and professional network to see if they know of any investors looking to purchase an investment property.
2. Marketing: I would create a marketing campaign to target potential investors, including online ads, direct mail, and social media promotion.
3. Host events: I would host informational events or seminars to educate potential investors on the benefits of investing in real estate and how to purchase an investment property.
4. Online presence: I would make sure to have a professional website, and an active social media presence, to showcase my expertise, my properties and my team.
5. Be a resource: I would be a resource for investors by providing them with information on the local real estate market, including property listings, market trends, and financing options.

Get the highest paying job you can get and use your extra money to take classes to make more money. A high wage is going to be your best ROI right now.

The amount of down payment required for an investment property, including a short-term rental (STR), can vary depending on the type of loan and the lender's requirements. In general, investors will typically put down a larger down payment for an investment property than they would for a primary residence.

Conventional loans typically require a minimum down payment of 20%. However, some lenders may require a higher down payment for investment properties, especially for those that are intended for short-term rentals.

FHA loans, on the other hand, may require a down payment of as little as 3.5% for investment properties. However, it's important to note that FHA loans have stricter occupancy requirements and may not be suitable for short-term rentals.

VA loans have no down payment requirement, but the property must be used as a primary residence.

Other loan options such as hard money loans or private money loans typically require a higher down payment, usually around 20-30%.

It's worth noting that some investors use leverage to purchase more properties and scale their portfolio, which means using other people's money (OPM) through loans and using less of their own money.

Ultimately, the amount of down payment you put down will depend on your financial situation and goals. It's important to speak with a lender or a financial advisor to determine how much of a down payment you will need and what type of loan is best for your situation.

It's also worth considering the potential return on investment (ROI) and cash flow of the property, as well as the overall market conditions and your risk tolerance.

It sounds like you may be in a difficult financial position due to the high payments on your HELOC and mortgage. However, there are a few options that may be able to help lower your monthly payments and make them more manageable.

1. Refinance: You may be able to refinance your mortgage and HELOC to secure a lower interest rate and potentially lower your monthly payments.
2. Change your loan terms: You may be able to negotiate with your lender to change the terms of your loan, such as switching from a fully amortizing loan to an interest-only loan.
3. Rent to a long-term tenant: Renting your property to a long-term tenant may provide more consistent and reliable income than using it as an short-term rental.
4. Look for additional revenue streams: You could try to find additional revenue streams for your property, such as renting out storage space, offering laundry service, or charging for parking.
5. Renting out a room in the property : You could rent out a room in the property to a long-term tenant, this way you can make more money and help with the mortgage payments.

It's important to keep in mind that these options may not be feasible in all situations, and it may take some time to implement them. In the meantime, it may be beneficial to speak with a financial advisor to help you assess your options and create a plan to address your financial concerns.

It's also important to keep in mind that the situation with the bookings on your STR is not necessarily a long-term issue, it could be a seasonal fluctuation and it's possible to bounce back in the future. It's a good idea to track your occupancy rate, revenue, and expenses over time so you can make informed decisions about your property in the future.

It's not uncommon for out-of-state investors to close on properties without doing physical walkthroughs. In many cases, they may rely on virtual tours, photos, and inspections to assess the condition of the property. However, it's important to note that not physically being present to inspect a property can increase the risk of buying a property that is not in the condition that was represented.

As for rehab, it's also possible for out-of-state investors to oversee the process remotely, but it's important to have a reliable and trustworthy team on the ground to manage the rehab and keep you informed of the progress.

Having a reliable and trustworthy team on the ground can help mitigate the risks of out-of-state investment, such as finding a good property manager and contractor. Hiring a local real estate agent who knows the area and is familiar with the local market conditions can also be helpful in identifying potential properties and assessing their condition.

It's also important to have a clear and thorough plan in place for the rehab and to communicate effectively with your team on the ground. This can include setting detailed timelines, budgets, and expectations for the work that needs to be done, and regularly checking in on progress and addressing any issues that arise.

As an investor, it's also important to conduct due diligence, such as researching the local market conditions, zoning laws and regulations, and the local economy.

In summary, it is possible to invest in properties and rehab them remotely, but it does come with some risks. Mitigating those risks by having a reliable team on the ground, conducting due diligence and having a clear communication plan in place can make the process less risky.

There are several pros and cons to consider when deciding whether to use savings or business credit to pay for rehab costs or to fold those costs into the mortgage with a 203K loan.

Pros of using savings or business credit:

• Less red tape with rehab process when it is your own money
• You may be able to secure a lower interest rate on a personal or business loan than you would on a 203K loan.

Cons of using savings or business credit:

• You will have less cash on hand for unexpected expenses or emergencies.
• You may not be able to secure a loan large enough to cover the full cost of the rehab.

Pros of using a 203K loan:

• You can roll the cost of the rehab into the mortgage, which means you will only have to make one payment each month.
• You may be able to secure a larger loan than you would with a personal or business loan.

Cons of using a 203K loan:

• The interest rate on a 203K loan may be higher than the interest rate on a personal or business loan.
• The 203K loan process can be more complex and time-consuming than obtaining a personal or business loan.

Ultimately, the decision of how to finance your rehab costs will depend on your specific financial situation and goals. It's best to speak with a financial advisor and a loan officer to determine which option is best for you.

House hacking can be a viable strategy for investment, especially for those who are just starting out. However, it may not be as practical for families with young kids who are looking to settle down in a community and establish roots.

For families, house hacking can be done by purchasing a duplex or a triplex and living in one unit while renting out the other units. This can help offset the mortgage payments and provide additional income. However, it does require a bit more management and maintenance, which may not be ideal for some families.

As for the lenders, it is true that you took a loan under the premise of it being a primary residence, and if you are now using it as a business income property, it could be a risk. However, as long as you are transparent with the lender and follow all legal requirements, it should not be a problem. It is also important to note that lenders have different policies and guidelines, and some may not approve of this type of investment.

Overall, it's important to carefully consider the responsibilities and risks involved before deciding to pursue house hacking as an investment strategy. It may not be the best fit for everyone, and you should consult with financial professionals and real estate experts to determine if it's right for you.