All Forum Posts by: Kenzie McIlvoy

My husband and I own a SF rental that we did a cash out refi back in November to fund most of our current project (live in BRRR short term rental). It's been about 5 months and because of the market and appreciation, we now have about $15k of equity we'd be able to pull out (accounting for 75% loan to value).

My question is, is there a limit to how often you can do a cash out refi? Obviously, you’re paying each time but if I pay $3k to pull $15k I’m more than certain I can make that money back with the investment it would buy. If it’s possible to keep doing this over and over again we’re looking at refinancing sometime at the end of the year. We know this is just because of what’s happening with inflation but we want to be able to take advantage however we can!

Thanks!

We are under contract for our first live-in-flip and will be using our current house as our first rental. We are going through the process of screening tenants and have had several people apply. Our current standards for tenants is 3x the monthly rent in monthly income, credit score of 600 or higher, no evictions or criminal history and good rental history.

We have someone we’ve been talking with that makes 2.1x in monthly rent but will have a part time job and child support that push her into the 3x category. Their credit score is 508 and has a bankruptcy listed. They are able to get a co-signer with a higher credit score.

This will be our first tenant and I think we’re just trying to get over having to say “no.” Any tips on mindset or standards for yourself when screening through tenants? If someone in their position can do everything to meet our minimum standards how do you still say no and be respectful? We’re trying our best to be respectful to people and also stay out of a lawsuit. Thank you! 

This is awesome information and exactly what we are looking for. Thank you so much!

Thank you for your reply. I suggested this because BP Podcast usually suggest a doing a deal together before becoming business partners. I guess we could do one self storage deal and then reevaluate after that. I appreciate your feedback!

My husband and I have been spending the past three years doing everything we can to  learn about investing. (Reading books, listening to every BP Podcast episode, YouTube videos, meeting with investors, etc). We are about to close on our first investment which will be a house hack / short term rental on the lake while we use our current house as a long term rental.

We have said from the beginning that our long term goal is commercial real estate but wanted to start with small residential and stack up to more passive investing. We also have been trying to convince my aunt and uncle, who are extremely wealthy, to invest with us for the past year. We’ve had conversations here and there but really haven’t pushed it further due to their hesitation.

This past month they have approached us and let us know that they want to invest in commercial real estate and want to partner with us. They want to do storage but do not know exactly what kind. They have also said they’re ready to retire so would like to be pretty hands off, which we’re excited about. We are very much the real estate “experts” of our circle due to our education but lack actual experience.

We’ve suggested that we partner together in a small deal like a flip to learn how we work together and so they can gain confidence in our ability before jumping into a larger commercial project.

The reason they want to get into investing is because last year they paid $270K in taxes alone for their business. They also have $30-40K/month they’re looking to invest. We are all very excited about this opportunity but I want to make sure I steward their money well and set us all up for success. Our timeline is to begin investing in commercial real estate summer of 2023, a small flip fall of 2022 and have a formal meeting to discuss details within the next few months. We’ll have time to plan and discuss but I’d like to make sure I make good use of this time. I’d also like to be prepared going into this meeting (what split we should take, a business plan that clearly defines roles, budget, what capital we will contribute to the deal, etc).

Does anyone have any book recommendations, podcast recommendations, expert on the topic, words of wisdom, ideas? I’m really looking for anything anyone is willing to throw my way. I know this is a huge jump from managing a SF long term rental and short term rental and I want to do whatever I can to mitigate the risk that comes along with that.

Thank you!

Hi! My husband and I are closing on our cash out refinance and have the funding to use as a down payment on our next property. We refinanced to a conventional loan for our first home that we plan on keeping as a rental. We have found a house that we’re about to make an offer on. If we got this, we’d use our cash we got from the refinance to purchase and live in while renting out our current single family. The goal for this property would be to do a live in flip (cosmetics only) and at the end of the year move out and use it as a short term rental.

My question is, we have the money for our down payment and closing but how will we qualify for two mortgages? My husbands parents have been renting a bedroom from us for the past 5 months but other than that we don’t have renters history. We’re really eager to buy a new home and use our current house as our first rental but we’re a little confused on financing. Thank you!

I am a full time fire fighter and I work 48 hours on and 96 hours off. I'm on shift for two days straight and then have four days off every time I leave work. With all of this free time I'd like to get involved in real estate. Is there any advise or ideas on what kind of work I could seek? 

My husband and I are in the middle of a cash out refinance on our current home in DFW. We are looking to invest that money in a small multifamily that we house hack while renting out our current house. I'm looking for anything that will get my foot in the door or simply just be some better experience than just reading books and listening to the BP Podcast.

I know that the podcast talks about finding someone I can bring value to but I'm feeling kind of lost. I don't mind working as an intern either, I honestly just don't know where to begin. Thanks for the help!

Hard money would be a great option. You could focus on doing a few flips using hard money and once you have enough capital you could start investing in rentals. Typically, a hard money lender will want you to have some "skin in the game" by putting down some of your own money. For example, you cover the down payment or the rehab costs. Some will finance 100% of your deal but you have to think of your interest only payments. It would be wise to make sure you're in a better financial situation before investing. There can be several expenses that come up that you'll be responsible for. Make sure that you've compensated for your lack of experience with your knowledge and education and have enough capital set aside so you're ready for any unexpected expenses! Good luck!

Bigger Pockets has a great book titled "Investing in Real Estate with No (and Low) Money Down" by Brandon Turner. It is a great resource and will give you tons of ideas!

https://store.biggerpockets.co...

HI! I'm analyzing deals using the BP calculators and I'm having issues with it registering the purchase price. Under the purchase section it has a tab for "purchase price." I have listed "465,000" several times but it will not register with the calculator. I have tried taking out the comma, pressing enter before clicking off and refreshing the page. Every time it gives me the message "purchase price is required."

Has anyone else ran into this problem? If so, please let me know how to fix it. Thank you!