All Forum Posts by: Juvawn Parker

I am 27 years old. I currently have 3 properties. 2 of the properties are long term rentals (1 SFH, 1 Duplex), and the other property is a primary residence.

I have a high paying career and I have managed to keep my expenses down. The only loans I have are my real estate properties, no other debts are owed (no car loans, credit card loans, student debt loans, etc). With my career and relatively low expenses, I am able to put away an extra 40k a year. That means by the end of 2023 I will have 40k put away assuming nothing goes awry. 

The background information is needed to determine what I should do. In my position what would you, a seasoned investor with experience, do? Would you pay off a rental property you currently own (my SFH rental can be paid off with a sum of 40k), and place it inside of an LLC? Doing so could help reduce debt and also start a company to help liabilities? Once SFH is paid could even take a heloc and pay off another investment property (SFH is worth about 110k).

Would you buy more rental properties? Would increase my debt and liabilities since every property would be in my name, but could be a chance to get greater appreciation in the future? Time in the game is essential afterall.

Would you focus on paying off your primary residence? At my savings rate I could probably pay off my primary in about 7-10 years. Once that's paid off my debt would greatly be reduced, and my living expenses would be drastically reduced since the living expenses are my biggest expenses.

Would you do a combo of all three? I prefer buying and holding. Maybe an occasional cosmetic brrrr if the opportunity arises. I also prefer to heavily focus on my career as of now since I believe I can increase my income even more as time goes on and I gain more certifications.

ANY AND ALL ADVICE WELCOME. THANKS!!!!

@Phillip Vera that would be kind of you. I shall reach out.

@Michael Kinsella thank you for the reply!

Hi all,

I won't keep this long. I am a new investor in the Augusta GA area. I originally planned to save up capitol for all of the property I buy but that does not scale well. Now that I know the area better due to my first investment, I am hoping to try my hand at BRRRR. Are there any hard money lenders/private lenders in this area that would be willing to have a conversation with me? If you know any could you drop their contact? Thanks!

I am definitely super excited since it is my first one. And I would love to develop more relationships with others so I am free to talk when that time comes.  

Hi! Thanks! My realtor also has a property management service I will be using. He has been great so far and I am confident that will continue on the property management side of the house as well. With him I set a number limit for maintenance. Anything under is a go with no need to ask me, and anything over I will be informed to provide guidance.

I live in the South Carolina Charleston market. As a beginner who was only 24 at the time, I found it would take me a long time to save up the capital to buy in my market. I work well with others but for my first true rental deal, I did not want a partner. I was already house hacking to save money, but since you can only do one house hack a year, it is difficult to scale. With all that said, I decided that my option was to invest out of state in a different market. People will tell you that that's not smart, and holds dangers but if we are being honest we can say that about every investment venture. As long as you do proper research to mitgate risk as much as possible, Id say start learning how you can invest in deals out of state, and create a framework/system that allows you to flourish. Any questions feel free to reach out. 

@Ana Kudlack. I can understand being worried about prices being overinflated. Being underwater is not where you would want to start off. I would make this insight though, if you found a deal that cashflow well enough to allow you to live for free, would the price at what you bought it for matter as long as the deal cashflowed and the rents matched the market value? The market has corrections and that's understood coming in. One day you could have equity in the home, and the second day you could be underwater. But on all days, as long as you are able to make your payments, and collecting rents, then you know you made a good deal. 

Disclaimer! I'm a beginner who has not stood the test of time.

With that disclaimer out of the way, I have been house hacking for close to a year now. My current tenant/roommate still has a job and plans on staying with me throughout most of next year. My philosophy is that people will always need a place to stay. With that being said one of the things I am cognizant of is population trends. With remote work possible, some of the bigger cities may face a slight exodus of its higher paid citizens who can work remotely. How does that impact real estate? I honestly couldnt tell you. What I can tell you is this though. If your tenant/roommate has a job that is well paid and have better chances of working continuously through this pandemic, then you should be fine. I just bought my first out of state rental. One of the biggest employers in my city of choice was a hospital. I don't fear not having tenants because doctors, nurses need a place to stay and that work cant be done remotely. If you plan on buying and holding then even better. Profits are better seen over a time span.

Those are my thoughts as a beginner, but i wish you all the best.