All Forum Posts by: Thomas P.

Doesn't this trigger the due on sale clause?

Let us know how it turns out @John P. Cemonuk, Jr. and welcome!

Welcome to BP @Lance Austin!  Felt the same way 4 months ago...and it's fueling me and the growth of my business in a big way!

Everyone has different strategies.  I think you need to laser in on what your goals are.  Start with the end goal in mind. 

If you want quick cashflow and aren't concerned too much about investing above and beyond the 100k, maybe #2 is ok. You would really need to make sure you buy right so that your expenses are covered. But you did say "long-term". If you are in it for the long term, the BRRR strategy is the way to good. Leverage is the name of the game. I have bought all 6 of my rentals using the BRRR strategy before I even understood I was doing it. I just knew I always wanted all my cash back to move on to the next property nand continue building my portfolio. The BRRR strategy may work with bigger multifamily units, but it will typically take you longer to cash out because they are valuated differently than a SFR. There is a wealth of info here on the pros and cons or SFR vs Multifamily. Read up and do what makes the most sense for you.

We do SFR's because we can refi them out quickly with commercial lending usually at an ARV of 80% based on appraisal, sometimes 85%. I would imagine you have local lenders who will do the same. Don't be afraid to call local banks and ask what they offer or what they can do. Also, if you know a banker personally, maybe someone you go to church with, talk to them. You wouldn't believe what they are able to do if they understand your business model/goals. We just locked up our 7th rental, closing on the 22nd.

Purchase price: $89,200
Repairs: $5000
After Repair Value (ARV): $120,000 (conservative comp, may appraise for more)

So, we will have $94,200 in it.  Refi 80% of $120,000 appraisal = $96,000.  Closing costs of $2000.  I have basically purchase the home for free, have 20% equity in it based on appraisal and will cash flow $150-$200/month.

Rinse and repeat as fast as you can.  The more relationships you have with banks/lenders, the more likely you are to be able to build your portfolio faster. 

Just my  $.02

I'm in Knoxville and may be interested in buying a preforeclosure at a discount with the owner moving out. Message me

Joseph, I'm in Knoxville, TN building my real estate portfolio to ultimately move out to Phoenix where my wife is from.  I own several rentals here, but I'm looking to invest in Phoenix soon.  Maybe we can assist each other.

I may be reaching out to you soon Jeffrey!  Thanks for your input!

@Marcie H.

I can recommend someone here in Knoxville that I've used before.  message me

Welcome Scott!  Just joined not too long ago.  I'm in Knoxville as well!  BP is an awesome site.  You'll find a ton of info to help you here.

 @Angela Freeman

Do lend in the Knoxville area? If so, I'd like to see what terms you offer for NOO rental property, LLC owned.