All Forum Posts by: Maureen McCann

Hi Shakil...Welcome to BP! Thanks for your question. 

Birmingham and Huntsville are very strong rental markets that provide good cash flow and appreciation. I have worked in both of these markets for the last 10 years. I am happy to give you some guidance. Feel free to reach out and I will give you the 411. 

Cheers!

Hi Elizabeth...Sean gave you some excellent advice and guidance. You still have time to set up a 1031x for your VA property. I like Sean's suggestion of just setting it up in case you utilize it and find replacement property(s) within the allotted timeframe.

This is where I may be of value to you.  You mentioned you do not want to take on any new mortgages and you are close to retirement. This tells me that the more monthly cash flow we could generate for you now the better, correct?

If this sounds good to you and you want to learn more then feel free to DM me. 

Cheers,

Maureen

Hi Stephen...Welcome to BP and the incredible wealth-building world of real estate investing. I have been investing in the Birmingham, AL market for the last 10 years. I have a wealth of knowledge I can share with you and provide you with some good insights into markets to avoid and those to pursue. 

I love that you are just beginning your RE journey and you are in the right forum to help you achieve your goals. 

Feel free to connect with me and I will lend you my expertise with investment real estate. I love helping new investors navigate the real estate investing world. Cheers!

Hi Jon,

I consulted with a good friend of mine who is a lender and also a real estate investor. Richard Advani with Guaranteed Rate is not only one of the best lenders and strategists I know, but he and his wife are also investors owning 22 units.  

Check out what Richard had to say about your question...

A couple things to note for this scenario

1. It will be tough to get “primary home” financing on a duplex if you already live in a single family home. Typically underwriters find it hard to believe that a person will downsize and actually move in to a duplex. That being said, its not impossible. If the client is truly going to occupy the unit and the duplex is say closer to his work or family and the move itself makes sense, he very well could use primary home financing at 5% down to purchase an owner occupied duplex.

Do we, instead, put as low a down payment as possible (owner occupied financing) and buy several cash flowing REIs to cover as much of the new higher mortgage as possible, using the chunk of equity from the sale of the SFR?

The overall goal is to do the traditional 'stack' over the next 5 years (duplex this year, double the number doors each year for 5 years, a la Multifamily Millionaire).

Implementing the above strategy isn’t quite as simple as his understanding. He could possibly put a low down on a “primary home” duplex however each subsequent duplex would require 25% down if done in the near term (assuming he sold his primary home which is the best path to accomplish his goals in my opinion). In order to use “primary home” financing repeatedly, the new purchases would have to make sense and be upgrades from the existing duplex. I.E. He purchases a duplex primary home this year and in 1-1.5 years he purchases a nicer larger 2-4 unit, maybe in a more desirable area – that would make sense and generally get approved with primary home financing assuming of course he was going to occupy a unit.

The whole strategy he plans to employ requires a "move-up" each new purchase and he already has a SFH which causes a big hurdle in the "move-up" strategy so once again selling that would behoove him.

The plan he didn’t mention which is really the only plan that will work in the short term is:

Sell current primary home

Purchase owner occupied 2-4 unit with 5% down

Purchase additional; 2-4 units with 25% down with the remaining proceeds from sale of primary

I am happy to make an introduction to Richard if you would like to discuss further. Just DM me and I will make it happen. 

Hi Fred...I am sorry to hear about your first real estate experience. I can understand how you would shy away from it. The good news is you understand the basic concept of unearned income paying your way into retirement and beyond.  

Rental real estate is an exceptional way to go when you invest with the right turnkey company, in the right market, at the right time, and for the right price. There are good rental markets with good prices (<$200K) that will cash flow and appreciate.  I have been investing remotely for 16 years and know the best TK operators. DM me and I will give you the scoop. 

Farooq...Thanks for your question. Investing in real estate is for cash flow, capital appreciation, tax savings, and amortization. Think: the renter pays all of your bills and gives you a few hundred dollars every month.  Investing in a property that provides negative cash flow is like feeding an alligator every month.  Every month that alligator needs to be fed and you don't want to be the one cutting the check. 

If you are looking for a low-interest rate or new construction and you cannot find it in your backyard, then I suggest taking a look at markets outside of your state.  I know of a few operators who are offering 4.75%-5.5% interest rates for 30-year fixed mortgages, a 20% down payment required with cash flow, good appreciation with good PM in place. If you are open to looking outside of AZ, DM me and I will give you the 411.  Cheers!

Hi Stephen...Welcome to BP! If you are looking for a newly built duplex in FL, then I have a good connection for you.  In truth, you do not need to invest where you live as there may be better markets that produce better cash flow with solid capital appreciation in many areas throughout the US. I am very familiar with the SE markets and can help you find the right turnkey company. 

If you feel more comfortable investing in your backyard then that's cool too.  I just wanted to give you some food for thought that you can live anywhere you want and invest in other markets.  And hiring the right PM CO is the most important decision you will ever make with investment real estate. I have a list of good questions you can have to interview a PM Co.  Feel free to DM me and I will hook you up. 

Cheers!

Hi Brian...Fellow Californian here too. I work with a lot of CA-based investors who invest out of state. If new BTR rentals are what you are looking for then Tuscaloosa, AL, or FL are good markets that not only have cash flow but offer good capital appreciation too. 

I have been in the out of state rental game for 16 years. If you need some guidance or advice, feel free to connect with me. 

Cheers!

Hi Abhishek...Are you set on Detroit or are you open to other markets with a low barrier of entry, good job growth, good population growth, low property taxes, and a solid turnkey company with boots on the ground? There are a few good turnkey companies out there. I have 16 years of experience in the TK world and can help direct you on which markets to consider. 

Feel free to DM me and I will give you the 411. 

Cheers!

Hi Mariana...Thanks for your question. I live in San Diego too and I have been investing out of state for the last 16 years. I agree with the markets Lane shared. I have rentals in some of the markets he mentioned. If you are interested in meeting up to talk out of state investments, I would be game. Feel free to DM me and we can make it happen. 

Cheers!