All Forum Posts by: Lateefah Mathews

@Anthony T. Glad you took the plunge and posted, we all pretty much start out as lurkers, Lol! Now for your question, first off, I’d get an updated valuation because your 2021 appraisal is stale. The market and economy have shifted since then, so your true equity position could be higher or lower than you think. Second, I’d look into a 1031 exchange. Sell and roll into multiple cash-flowing properties in other markets, or even a larger, multifamily or mixed-use building. This will let you defer capital gains, potentially increase total units owned, and target stronger cap rates outside Silicon Valley.

Should you decide to keep the property, I like the cash-out refi plan over a HELOC. It's a easier way to tap into your equity and reinvest into multifamily, either in-state or out-of-state, while still keeping this prime property in your portfolio.

Hey @Waiel Hussein Welcome to the BP family! You're not starting from scratch, your restarting from experience! You're in the right place for whatever you need a refresher on...Just read, ask questions and you'll be good to go. Wishing you all the best as you jump back in & start to rebuild.

Hey @Christopher Burgos Thanks for the unintentional dinner inspiration...I was trying to figure it out, and you nailed it! But seriously, that's wild, no communication at all?! I'd flag it for the BP team to check out. That behavior doesn't align with the "spirit" of the platform. The forums are here for dialogue; assuming they may have disagreed with something you posted, they should have just responded there. Anyway, I hope you can get this resolved!  

@Ricard Cardichon Welcome to BP! Not sure if you're new, but I'd like to welcome you anyway! Phew, this is a good one. Great question. Ok, if your plans are to stay long term and you’re confident managing tenants, the duplex might be the better win because it’s a potential long-term cash flow move.

But if you just want to roll in, build equity, and set yourself up for future passive income, the single-family home covered by your BAH is probably the more solid route. You're still buying, still gaining appreciation, and when you leave and decide to rent it out, all of that rent becomes 100% profit, and it's simpler to manage. Not to mention the additional $200-$300 potential cash flow with no mortgage. Even without rental income, the fact that there's no mortgage is huge.

Hey @Max Uyeda Welcome welcome welcome! Now for the pause...no borrowing family money right now. You’re fresh out of the fryer. Get a deal or two under your belt, then bring family in. Look what I’ve done, wanna build with me? That’s way cleaner, way less chaos.

As for out-of-state, that ='s high trust, high risk without the right team. I work with a lot of out-of-state investors, and boots on the ground can be the make-or-break. Your agents, PMs, contractors, all gotta be locked & loaded before you deploy any capital.

SFR's yes! Great for BRRRR. You can spread your risk, diversify markets, and redirect faster. And you probably won't need to use every drop of your $400K to get started. But turnkey (REI Nation) is more lunchbox money than wealth building. I'm not saying there's nothing wrong with it, especially if you're ok with low returns and slow appreciation and equity.

Multifamily for a starter, ummm IDK. You get scale, but it’s commercial financing, based on income, not comps. Less maintenance per door, YES, but harder to pivot if the deal goes left. Big eggs in one basket.

So in a nutshell, if you were my client, I'd advise you start with 2–3 SFRs in a strong cash-flow market, BRRRR them, build your team, recycle the cash, then go bigger and invite the family to eat at the table with you.

Let me know what markets you're looking at. I’m based in Georgia, if that happens to end up on your radar!

Hey @Emilio Casenave Welcome to Bigger Pockets! Honestly, liquidity is power in RE investing. Locking up all your cash in two paid-off rentals limits your flexibility and leaves you with no reserves, no scalability, no cushion. That’s more stress, not less! Mortgages aren’t exactly risky, especially if the cash flow covers the debt service. That’s the whole point of leverage.

Two paid-off SFHs means one tenant each, and 100% vacancy risk if either one goes empty. Personally, I'd be looking at two duplexes instead. That gives you four doors, two mortgages, and a lot more breathing room. Look into DSCR loans...borrow from Peter to pay Paul and keep some of your liquidity for scalability. I get that you're thinking no debt means no risk, but in this case, you'd actually be managing your risk better through diversification and leverage. You keep the cash working for you, not buried in one spot.

There's more than one way to skin this cat. You could even go for four with the cash, but I'd definitely be thinking in terms of DSCR and more doors per loan. That way, you've got options, and that's key when you're transitioning.

Hey @Nathan P Tanner Apartment complexes do it all the time, you don’t need a finished unit to lock in a tenant, just market it like it’s move-in ready, and be clear on the move in date if it's within a month, that's a more reasonable time frame than waiting for 2 months or when rehab just started. List all upgrades they’re getting, like brand new roof, kitchen, electric, etc. New sells!  Also, offer an incentive like half off the first month if they apply early.

Either way, early marketing can help potential tenants plan their move and help you cut your vacancy time in half. This works best if you’re managing it yourself; that way, you can control the whole flow.

Hey @Michael Verges welcome to the BP Fam! Your questions are definitely pointed in the right direction and I laid out responses below to assist and add on to Josh's responses (which are spot on as well). 

1. Let’s start with the renters.You’re looking at $2,200 a month which is middle-income tenant territory. Basically those who want newer single-family homes with a yard and garage, usually 3 or 4 bedrooms. But they’re not in Midtown at all. That’s more like South Fulton, Douglasville, or maybe even Gwinnett or Henry. And the $220K homes? Thats NOT realistic. Those price points don’t exist like that anymore, especially if you’re looking for light rehab and built after 2000. 

2. The 1% rule.You might find 1% deals, but like Josh said, you're probably looking at Padsplit setups. Maybe STR with an upstairs/downstairs layout. Maybe MTR where you can pull in double rent. But if you're going traditional LTR... nah, not likely. I'd suggest shifting your focus to what type of return actually fits your risk profile. And honestly, if you're open to building a portfolio, one or two 0.8 percenters with long-term upside might be a better play than chasing unicorns.

3. Self-managing? Yes, it's doable since you’re local. And there are so many tools right here on BiggerPockets here's a link to help: Property Management & Landlord Hub
You just want to make sure you’ve still got systems in place, even if it’s just one rental.

4. Down payment. We’re in a weird rate environment. I don’t know how I want to phrase this exactly, but, if this is your first step, you're better off conserving cash, get in, learn the game, and build leverage from there. If you’re jumping straight into a high-down LTR with break-even margins… you’re locking yourself in too early. And honestly, it might make more sense if the play was something different anyways.

Lastly, you're right. You need an IFA. An IFA will help get you where you need to be. Analyzing tenant demand, breaking down ROI, pulling ZIP-level data, like a partner, not a tour guide. And I assume that’s why you’re even on BiggerPockets in the first place. Also,what are you actually working with? Because I’m trying to figure out why you’re so strict on margins. Are you working with limited funds? Or are you sitting on a solid stack and just trying to make every dollar count? Because if you’re liquid, and you’re working with the right person, the strategy can actually be effortless. It just has to match your comfort level.

Hey Edgar! So let me make sure I’m clear… you prefer to eliminate the living room to create an extra bedroom, and end up with no shared family space? No TV room or sitting area at all? 

If so, that’s not a good idea. Almost all homes in the state of GA sell faster with a living room. Taking that away can hurt your resale value, because most buyers expect a common area to gather. Why try to fit a square peg into a round hole? Move on to a deal that doesn’t require you to bump up or out to add square footage, especially one where the conversion takes away from essential parts of the home.

@Mark Anthony Hey, and welcome to BP! Since everyone’s already covered the charm and historical value of both areas, I’ll zoom out a bit.

If you’re doing buy/hold, turnkey... whether the RTP ratio actually makes sense right now in either of these areas is what’s important.Don't get me wrong,  I’m a fan of the mid-century modern. Totally here for it...love, love, love it.

But, I just wrapped a project in Collier Heights, and I’ll be honest... it’s not a slam dunk unless you get the property at a really good basis. Prices in 30318 have fluctuated a lot since the Westside hype cooled. And even then, historic restrictions can delay rental readiness... especially if you’re hoping to improve curb appeal or modify exterior elements.

College Park? If you’re in the 30337 corridor close to Main Street, your RTP might work, but it won’t be great unless you’re adding value or leaning into a mid-term strategy. Also, airport proximity is a love-it-or-hate-it issue... and honestly, that’s not talked about enough.

At the end of the day... there are better RTP plays out there unless you’re layering in something like MTR, corporate travel, or adding real value on the rehab side.