All Forum Posts by: Jon Kelly

@Kirk Zandier On Monday I'll be closing on my 8th single family, and on 7/27 I'll be closing on my 7th multi-family. I've used the BRRRR strategy on most of them

@Esther Min the BiggerPockets calculator! You need to give it a try if you haven't already 

@Dan Mcguire very nice. I charge ~$35/pet. But, my average rents are ~$750, which I'm guessing are lower than your area

@Travis Hargreaves I would charge a pet deposit and/or monthly fee. Require renters insurance. You'll have to confirm the renters policy covers liability in the event the pet injures someone. Make sure there is no exclusions based on breed, weight, etc. 

@Kirk Zandier My first true real estate deal was a great learning experience. I found a great deal on a 4-unit property, with 3 -units already rented. Purchased for $112K (appraised for $140K). I put 25% down. I borrowed $5K from 2 family members because I wanted them to be apart of the deal. I learned to always do proper due diligence before you buy and don't be afraid to negotiate the price after you do your final walk through! Before agreeing to a purchase price, I looked at 3 out of the 4 units. I never saw the 4th unit until 1 hour before closing. Of course, the 4th unit was in the worst shape and it cost me an additional $8k in bathroom/kitchen remodel that I didn't expect. I didn't try to negotiate the price because I didn't want the deal to fall through. Regardless of the $8k mishap, its been a solid deal. Highlights of the deal below: 

@Kirk Zandier Each of those strategies and house-hacking are all great strategies. Don't be concerned about looking for the "best" strategy. You mentioned you are "nervous" and "wary" about using hard money. That's a common feeling everybody can relate to. The feeling won't go away until you start doing deals. 

@Skylar Mcgee It's certainly possible and you should compensate your mom if she co-signs. I would be VERY conservative with all of your estimates in your analysis. If you have a sizable savings account, why are you putting such a low down payment down? Unless you find a "home-run" type deal, you may be better off waiting to buy until you or your wife have steady income again

@Kenneth LaVoie Great question! The good news is you really can't make a wrong decision. LOTS of factors to consider, but I'll answer it from the perspective that I believe REI returns outperform the stock market and therefore you should hold onto your income producing assets. The biggest challenge then is your time and energy. You mentioned a property manager is much more difficult to pull off. It doesn't need to be an all or nothing decision. I would suggest trying a well respected property manager on 5-10% on your properties and see how they perform. If you're satisfied with the property manager and the returns after 1-2 years, then slowly transition more properties to the property manager. Before you know it, you'll be 62 and completely hands-off your REI portfolio, still make great cash flow and be able to travel the world!

@Austin Walker Yes, DTI is important, but there are ways around it. Call as many small/local lenders as possible. Ask the lenders for a commercial loan. The interest rate will be higher (4.5-5% compared to 3.5-4%), but there are less restrictions. Tell them your situation upfront to avoid getting too far down the path of closing, only to be declined.

@Ben Morand You answered your own question in your post. Ryan Dorsey, assuming everything he says is true, bought 150+ properties in 2 years using the BRRRR strategy. There's already some really good information shared on this thread that will help you out. One piece of advice, you will never have a bullet-proof strategy and all the research in the world cannot prepare you for all the issues that come up. Spend your time researching and planning, but then go out and take action. If you're "too young" or "too broke" or "too busy" to go on your own, then partner with a professional in your area