All Forum Posts by: Michael Pearse

@Neil Klinges Buying your first will provide much more value to you than paying off a car loan. You will learn about the process, build connections, and be one step closer to your RE goals. Use RE debt to make money and get involved. Cheers.

@Jacob Holth I use metrics that I rank against my own performance. I like properties that need rehab, that way I can refinance and pull all my money out. If you can work the numbers to where your cash flow is positive, with the built in conservative numbers, you are on the fast track to financial freedom. Know your numbers, make smart calculations by removing guesses, and leverage. 

@Darrell Carter I recommend using leverage to your advantage. Finding a duplex to live in and rent the other side will put you years ahead. In this situation I would use the FHA, put 3.5% down and using the remaining money to either rehab the other side (to raise rent) or get another property. You are on the right path

@Michael Kistner Review the life left on the big ticket items. Roof, HVAC, structural integrity, windows, ect. Estimate the renovation cost and potential rent increase from this improvement. Keep in mind the properties near you and determine if your property will appraise near or above close markets. After doing all that, refinance and keep the cash flow coming. Rinse, repeat. Best of luck

@Darrell Carter In this situation, it depends. If you purchase a single family home and rent out the rooms/other units (duplex, triplex, ect), then you can use FHA financing. FHA financing will only apply if you plan to live in the property. If you invest in a home and do not live in it, banks typically require 20%-25% down.

@Darius Gary A good place to start is attending a local real estate social and ask for recommendations on property management. Building connections is the first start of the journey

@Mike Zimmerman Yes a duplex is a great option to get started in RE. I am actually in the process of searching for a duplex to live in as well. If you don't want to deal with tenants, I am sure there is a property manager that can take care of the other side for you.  Best of luck

@Zoe Floyd Sounds like a great idea. If you don't mind living close to another family, definitely consider it. Best of luck

@Peter Vance

If the numbers work and the deal makes sense to you, go for it. The best way to learn is to take action and get started in the RE business. Even starting small in your local area is fine, you will learn so much from the process itself. Best of luck

@Ian Hamrick

The best way to learn is continue to actively read books and forums on real estate. Look into your local real estate socials and start attending. Tell people what you are looking to learn and what you have to offer in return. If people see that you are committed, they are more likely to help you succeed. Be consistent and take action. Best of luck, and welcome to BP.