All Forum Posts by: Mike Eichler

Hey @Josh Harper It really depends on what niche you are going to go into, but In my opinion and I am mainly an STR guy, I try and use little cash and leverage my way into bigger deals for the increase in cash on cash returns, as well as being able to usually push into higher and better areas that should appreciate more, of course all that is just an added bonus.

hope this helps, let me know if you have any further questions

Live Free, 

Mike
  

Hey, @Luca Villani Welcome to the wonderful world that is Bigger Pockets, There is most certainly no "earliest age" that you ca start real estate( besides being 18 ofc). Take it from me I bought my first rental property a few months ago when I was 18 and Im currently under contract for my second at 19. My advice to you is figure out your niche, what specific type of real estate interests you and what would you like to do, and while you gather up cash and everything needed to actually acquire the property learn as much as you can and ask the most "stupidest" questions you can think, just devour knowledge, just remember when its ready to go do not get caught in Analysis paralysis.

Hope this helps Luca, and welcome again to BiggerPockets.

Please feel free to reach out with any questions ever.

Live Free, 

Mike 

I believe that any strategy in real estate can become saturated especially STR. I also believe that if you are in the top tier of listings you don't have as much to worry about, even if you are not there are some options that you have... I actually just recorded a podcast on this and would happily share it with you ( feel free to DM me). Some of your exit options might be to switch to Furnished month-month rentals or LTR. and if applicable, student housing. Not sure exactly what your area is like but here in Philly we have had some success switching some of our STRs to furnished month-to-month as regulations to ban STR are looming.

Hope this helps, let me know if you have any further questions and I would be happy to answer them for you.

All the best, 
Mike

If you are ready now I would jump right in, I also do see from your side that you don't necessarily need to move out right now, which will bring extra expenses that you do not have now, however, if you plan to move relatively soon anyway, why not just go now? Also, the knowledge you will gain from the first purchase will be astronomical in your growth as an investor. As you said you could not time the market, so waiting to jump right in is not ideal. The market will always trend upward in the long term, you do not want to get caught in "analysis paralysis". 

This is just me rambling on but I hope it helps.

Let me know if you have any more questions and I would love to help.

All the best, 

Mike 

Don't know that any conventional lenders will allow no MI for anything less than 20%. 

Hard money lenders could work but of course would come at a much higher interest premium.

I would suggest just using the 10% and paying the MI as you still would be in the deal for much less, making your Cash On Cash much higher still.

Hope this helps let me know if you have any more questions.

all the best, 

Mike

My suggestion is to get really good at estimating ARV, or the price the property will sell after it is all fixed up, and allow there to be sufficient returns for the end investor AFTER you also take your wholesale fee out.

Let me know if you have any other questions and I would be happy to answer them for you.

All the best, 

Mike 

 If the tenant is responsible for utilities put them in their name, if you are paying it and charging it back to them put it in your name. you don't want get messed up in the event that tenant stops paying.

Hope this helps feel free to reach out anytime with any more questions,

All the best, 

Mike

Hey @Jack Dagnese I work with a property management company and we have some listings at the Jersey shore, Its not my favorite market because of the seasonality aspect, and as you said the much higher barrier to entry as the prices are so much higher.

I specialize in STR properties, you might be alluding to LTR, but nonetheless, I would be happy to run some numbers on a property for you, feel free to DM me.

Best of luck, 

Mike

Hey @Dylan H. To be able to get approved for a 3 or 5% downpayment, for 3% down it would have to be the first property you have ever purchased and you have to live there for the 5% you can do that once per year, which you also need to "intend" to live there, some are able to skate by the rules per se, and not actually live there if their situation changes after getting the loan. Otherwise, you would be able to do a 10% down second home/ Vacation loan. From then on you can do 15% down DSCR loans which use the projected income of the home to qualify for the loan.

hope this helps,

Let me know if you have any more questions

All the best, 

Mike

Hey, @Logan Rhea Occupancy seems crazy high, where did you source the data for the occupancy?

Also, you would need to account for Management, even if you plan to self manage you should plan for management as its likely you will switch later on. You also want to budget for cleaning, consumables, repairs, etc.

Id be happy to run my own numbers on this property, feel free to DM me 

Hope this helps

all the best, 

Mike