All Forum Posts by: John Mathew

Hi there! Generally speaking, there is no set limit to the number of multifamily properties you can refinance with a bank. However, banks will evaluate each refinancing request on a case-by-case basis and consider factors such as your credit score, debt-to-income ratio, and the property's cash flow and value.

While there is no limit on the number of refinances you can do, keep in mind that each refinance will add to your overall debt and affect your credit score, which could make it more challenging to qualify for future loans. Additionally, some banks may have their own internal policies and guidelines that could limit the number of refinances they're willing to do with an individual borrower.

It's always a good idea to consult with a lender or financial advisor who can provide you with more personalized advice based on your specific financial situation and investment goals.

Congratulations on almost completing the rehab of your mid century modern home! It sounds like it has some great potential as an Airbnb or VRBO rental. However, you are right to be concerned about protecting yourself in case of an accident.

One option you could consider is getting liability insurance to protect yourself from any accidents that may happen while guests are using the pool. Make sure to research and compare policies to find the one that offers the best coverage for your needs. You could also consider having guests sign a waiver before using the pool, stating that they understand the risks involved and agree to use the pool at their own risk.

In terms of whether to STR or sell the property, it ultimately depends on your long-term goals and financial situation. STR can be a great way to generate passive income, especially if your property is in a desirable location and has unique features like a pool. However, it also requires ongoing management and maintenance. Selling the property may give you a large lump sum of cash upfront, but you will lose out on potential long-term rental income.

Consider weighing the pros and cons of each option, and consult with a real estate professional to help you make an informed decision based on your specific circumstances. Good luck with your decision!

I'm sorry to hear about the setback you faced with the bad contractor. That can be a frustrating experience. It's great that you're thinking of creative ways to move forward and reach your goal of acquiring more rental properties.

Selling your primary home and acquiring a multifamily property for house hacking is definitely a great strategy. One option to consider is doing a lease option on your primary home. This would allow you to potentially get some cash flow from renting out your home while still having the option to sell it in the future. With the cash flow, you may be able to lower your DTI ratio and increase your chances of being able to acquire the multifamily property you're interested in.

Another option to consider is finding a private lender or a partner who can help you finance the purchase of the multifamily property. You could also explore the option of refinancing your primary home with a different lender who may have more flexible DTI requirements.

Overall, it's important to stay positive and keep exploring different options until you find a solution that works for you. Good luck on your journey towards acquiring more doors!

Hi there,

First of all, congratulations on your first house! It sounds like you have a solid plan to remodel and rent out some of the rooms to offset your living expenses.

In terms of qualifying for your next house hack, you are correct that having a high-earning W2 income definitely makes it easier to qualify for another mortgage. However, there are still options available to you even without a high-earning W2 income.

One option is to look into creative financing strategies, such as seller financing or using a private lender. Pace's book about creative financing could be a great resource for you in this regard. Another option is to continue to build your income through your second job, and potentially look into other income streams as well. This could include things like starting a side business.

When it comes to leveraging a property purchase, there are many factors to consider. Here are some pieces of advice to help you make an informed decision:

1. Consider your overall financial situation: Before making any big financial decision, it's important to look at your overall financial situation. Can you comfortably afford a $2200 mortgage payment? Will you still have enough money for other expenses and savings goals? What will your cash flow look like with a $1300 mortgage payment and a $90k down payment? Take some time to crunch the numbers and create a budget to see what makes the most sense for you.
2. Look at the potential ROI: If you're considering buying a property as an investment, you'll want to look at the potential return on investment (ROI). Calculate the cash flow, factoring in all expenses and potential income. Consider the appreciation potential of the property over time, as well as the potential for rental income or other income streams. With this information, you can make a more informed decision about whether the $2200 mortgage payment is worth the potential ROI.
3. Evaluate your risk tolerance: Leveraging a property purchase comes with some level of risk. If the property doesn't perform as well as you hoped or if something unexpected happens, you could find yourself in a difficult financial situation. Evaluate your risk tolerance and consider how comfortable you are with taking on debt to purchase a property.
4. Get advice from a financial professional: If you're unsure about what to do, consider seeking advice from a financial professional. They can help you evaluate your options, assess your overall financial situation, and make a recommendation that aligns with your goals and risk tolerance.

Ultimately, whether you should spend $90k to get a property with a $1300 mortgage or go for a no money down option with a higher mortgage payment will depend on your specific situation, goals, and risk tolerance. Take some time to evaluate your options and seek advice as needed before making a decision.

Creating an LLC and applying for a business loan can be a viable way to put money down to purchase a property, but it's important to understand the pros and cons of this approach.

Pros of using an LLC and business loan:

• Limited liability protection: An LLC provides limited liability protection, which can help protect your personal assets if something goes wrong with the property.
• Separation of personal and business finances: Using an LLC and business loan allows you to keep your personal finances separate from your business finances.
• Potential tax benefits: Depending on the structure of your LLC and the use of the property, you may be able to take advantage of tax benefits.

Cons of using an LLC and business loan:

• More complex setup and ongoing maintenance: Setting up an LLC and obtaining a business loan can be more complex than purchasing a property as an individual, and there may be ongoing maintenance requirements for the LLC.
• Higher interest rates: Business loans can sometimes come with higher interest rates than personal loans, which can increase the overall cost of the property.
• More stringent eligibility requirements: Obtaining a business loan may require meeting more stringent eligibility requirements than a personal loan, which can make it more difficult to obtain the necessary funding.

Overall, using an LLC and business loan to purchase a property can be a good option, but it's important to weigh the pros and cons and determine if it's the right choice for your specific situation.

Hi there! Congratulations on finishing "Finding & Funding Great Deals" by Anson Young and for wanting to start your real estate career at such a young age. It's great to see your enthusiasm for learning and growing in the industry.

As for your questions, here are some pieces of advice:

1. Continue educating yourself. Reading books is a great way to learn, and I recommend reading more books on real estate investing. Some great options include "The Millionaire Real Estate Investor" by Gary Keller, "The ABCs of Real Estate Investing" by Ken McElroy, and "The Book on Rental Property Investing" by Brandon Turner.
2. Consider getting your real estate license. While not necessary, having a license can open up more opportunities for you in the industry, such as representing buyers and sellers in transactions. It can also provide you with a better understanding of the legal and ethical considerations involved in real estate.
3. Start with wholesaling. Wholesaling is a great way to get started in real estate investing with little to no money down. It involves finding great deals and then assigning those deals to other investors for a fee. It's a good way to gain experience and build your network.
4. Join a local real estate investing group. This can provide you with networking opportunities, mentorship, and access to resources that can help you succeed.

Remember, success in real estate investing takes time, effort, and dedication. Keep learning, take action, and don't be afraid to ask for help or advice along the way. Good luck!

Congratulations on your first property purchase! Building a real estate portfolio takes time and patience, so don't be discouraged by the slow process of saving up for down payments.

To answer your question, there are several ways to fund down payments for multiple properties. Here are a few strategies:

1. House Hacking - This strategy involves buying a multi-unit property, living in one unit, and renting out the other units to generate income that can be used towards the down payment of future properties.
2. Private Money Lending - Some investors borrow from private lenders to fund their down payments. Private lenders are individuals or companies that lend money to real estate investors in exchange for a fixed return on their investment.
3. Joint Venture Partnerships - Another option is to partner with other investors to purchase properties. You can split the down payment and other costs with your partner, which can help you purchase more properties more quickly.
4. Creative Financing - This includes strategies like seller financing, lease options, and subject-to financing. These methods involve negotiating creative financing terms with the seller of the property, allowing you to purchase the property with little or no money down.
5. House Flipping - This strategy involves buying a distressed property, renovating it, and selling it for a profit. The profit can be used to fund the down payment on your next investment property.

Remember, it's important to do your due diligence and research each strategy thoroughly before deciding which one is right for you. Good luck with growing your real estate portfolio!

Great question! As someone who has been in the real estate industry for a while now, I can definitely relate to the idea that the learning stage is never-ending. Here are some pieces of advice that I would give my younger self if time travel were possible:

1. Build a strong network: Real estate is all about relationships, and building a strong network early on can make a big difference in your success. Attend networking events, join real estate associations, and don't be afraid to reach out to others in the industry for advice and mentorship.
2. Focus on education: Real estate is a complex industry, and it's important to have a deep understanding of the market, finance, and legal issues. Take courses, read books, and attend seminars to stay up-to-date on industry trends and developments.
3. Start small and build gradually: It's easy to get caught up in the excitement of real estate and want to jump into large-scale deals right away. However, starting small and building your portfolio gradually can help you minimize risk and build a solid foundation for long-term success.
4. Embrace failure: Real estate is full of ups and downs, and it's important to learn from your failures and use them as opportunities to grow and improve. Don't be afraid to take calculated risks and learn from your mistakes.
5. Stay focused on your goals: It's easy to get distracted by shiny objects and opportunities that don't align with your long-term goals. Stay focused on your vision and make decisions that will help you get closer to your goals.

Overall, real estate is a challenging but rewarding industry, and it's important to approach it with a long-term mindset and a commitment to continuous learning and growth. By following these pieces of advice, you can set yourself up for success and build a fulfilling and prosperous career in real estate.

Congratulations on your decision to start building a rental property portfolio as a long-term investment strategy. Purchasing properties with a goal of accumulating equity over time is a good way to create wealth, especially if you are not in need of immediate cash flow.

Your strategy of purchasing three properties per year with fixed-rate loans is a good start. By focusing on building equity, you are setting yourself up for a more significant payoff in the long term. However, it's important to remember that it's essential to maintain your properties and ensure that they are producing consistent positive cash flow to keep your investments sustainable.

When scaling up your portfolio, it's important to keep your financial means in mind. It's essential to have a solid financial plan and understand your risk tolerance when making real estate investments. This includes having a solid understanding of the real estate market and taking calculated risks.

In terms of advice, I would recommend continuing to monitor the cash flow and ROI of your current properties, ensuring that they are producing consistent returns. It's important to have a solid financial plan in place and a clear understanding of your long-term goals. Also, consider working with a professional real estate advisor who can provide guidance and insight on your investment strategy.

Overall, your strategy of building a rental property portfolio with a focus on equity is a sound one. With careful planning and management, you can build a portfolio that will generate significant returns over time. Best of luck to you and your wife on your real estate investment journey!