All Forum Posts by: Kevin Levesque

@Tasha Beal Austin market is also a tough one to break into right now. You can cash flow well if you are willing to take a BRRRR approach. Not many turn key investments that you can cashflow immediately from without a rehab project and some capital to begin. However, the appreciation alone might be worth a minimal cash flow strategy. Austin is one of the best markets right now because millennials are attracted to the atmosphere and that won't slow anytime soon IMO. If you have the opportunity to break into this market via foreclosure or REO that would be the way to go in my opinion. If you see something, run your numbers and don't be afraid to pull the trigger. For those that don't understand the growth Austin is seeing, here is perhaps the best visualization over the last 12 years.

Great advice all. I have decided to try to grow my business. I will continue making payments on student loans which are at a rate of 5.25% (@Andrew C.) over the next 4 years. I am receiving $400 cash flow and that is including paying PMI (I used house hacking - 5% down) I have decided to take a cash out refinance which will increase my mortgage but will also eliminate PMI payment. I'll take the proceeds of the cash out to purchase to invest in another rental. I am estimating my cashflow on the first property will reduce to $250 and I will seek another property I can cash flow a similar amount. Also I'll be flipping my primary residence which I close on this Friday and already have 30k in equity before move in! Purchase price 185k appraisal came in at 215 before rehab.

@Account Closed Taking your advice my man! I think doubling down at this stage is the right move. Given the lowest interest rates in the past 30 years I think this is still a prime time to get into rentals. No doubt it would "feel good" to escape student loan debt. However, the 50 year old me will be glad I chose to double down while interest rates are low. Hell they may be back above 15% like the 80's at that time! P.s. Sending you a PM about the Nashville market. This is an area I am highly considering. 

Sezuo Daudu If you are able to house hack into a duplex / triplex I would highly recommend it. You can finance these for 5% down on a conventional note because it’s considered a primary residence. If not, find a good SFR in a neighborhood with good schools. Tasha Beal I’m also from Dallas and the market is incredibly hot which is difficult for new investors, let alone college graduates with student loans and typically lower income. I’ve had luck in Lubbock with renting to college students. Currently cash flowing $400/mo from my rental. I might look around Waco, College Station, Lubbock, Abilene, North of Houston if you want to stay in Texas. Homes aren’t as inflated and you can cash flow well from the university students. However they may not appreciate over the course of 20-30 yrs like a house in the major metro cities would. House hacking is 100% the way to go when you get your first job out though!

@Ben Wilkins Thank you for the compliment! Great advice as well. Where I struggle is I am paying roughly $200 in interest a month on my student loans rn. So this wipes out a lot of my cash flow anyhow and impedes my ability to peruse other investments due to debt to income with the student loans and rental against me. Trying to kill two birds with one stone essentially. Your input to focus on growing and letting the cash flow pay down debt is great advice!

@Alexander Felice Great input. Short term cash always seems like a good option when you're being pinched. IMO most markets have sky rocketed so a cash out while it's high looks lucrative. 

@Steve K. The interest I mentioned was on the student loans not the mortgage on the rental but I suppose the same principal applies. That's a great thought though investing my money and receiving 10-20% ROI beats the interest I am paying on the debt!

I'm new to BP and real estate investing. I am 25 years old and currently have 1 rental and 1 primary. In the rental I have about 50k equity and have considered selling the rental to unlock equity to reinvest or completely pay off all my student loan debt. I am paying about 1k a month in student loan debt.  I cash flow roughly $400 from my rental property. Although I am cash flowing nicely, I am using the $400 to tackle the student loan debt rather than reinvesting. 

The other option is to double down and take a how equity loan which I could probably squeeze 20-30k out of and pay down about half of my student loan debt or put 20% down on 1 or 2 more rental properties. I know this is a fan favorite on BP to retain the rentals and unlock the equity through a refi. I should preface your answers by saying I don't have any issues paying the 1k student loans a month. I haven't come under any financial stress by any means, its just annoying seeing interest money go down the drain every month :( Thoughts?