All Forum Posts by: Nicholas L.

@Arnold Caceres

I know this isn't what you want to hear, but I'd wait and save up more.  If you don't have cash to close, it sounds like you're not well capitalized enough to own yet.

Or, try to house hack with a lower down payment.

Good luck

@Sunny Burns

i think he's just trying to look out for you.  i give you props for being so transparent with your budget.  so i give you both props.  =)

not sure if you're on Reddit but this is the kind of conversation that happens there more frequently in the FI threads.

If you don't own any property yet, you're in a perfect position to house hack.

@Breanna Green

a few quick reactions

-are you going to meetups and networking with other investors?  I would try doing that if you're not already.  you might need to try a few different ones until you find the right peer group.  

-i think tax questions should go to a professional.  do you have a CPA already that could help you with the various tax implications of your various options?

-are you based in DC?  or somewhere else?

Hello - that will not work in 99.9999999999999999999999999999999999% of cases

Can you house hack instead?

Good luck

@Jesse Hubble

I think you have to make that determination yourself.  Anyone else's financial situation and real estate portfolio are going to be very different from yours.  Just because we leave X% or Y$ in a deal doesn't mean that would make any sense for you.

I give you kudos though for figuring out how aggressive you have to be for a BRRRR to work. It's very, very difficult to find them right now, even off market. There is such demand for BRRRR-able inventory that it's resulted in 'bidding wars' among investors just like for on-market properties.

@Runbang Tang

zero - zero cash flow anywhere in the first few years on an LTR.

@Frank Wei

anything that is going to generate "cash flow up front" is going to be more of a hands-on / more time-consuming or niche strategy - flipping, STRs, MTRs, etc.  unless, of course, you simply buy an LTR in all cash, without leverage.  but if that is the case, your cash on cash return may be lower.

i just always get nervous when folks with busy 9-5s come on BP wanting "cash flow." that often results in them buying a deal in a random, supposedly "low cost" market that looks good on paper, and then starts losing money in month 1.  here's an example:

Sell at a loss or rent at a loss

not trying to be discouraging, just realistic.  the market is really tough right now - high rates, busy contractors and PMs, tremendous demand for deals among investors.  LTRs are still a great investment... they're just very, very long term and may not truly "cash flow" for 10+ years, depending on how you measure it.

@Lara Gott

if you are truly interested in buying OOS, i'd strongly encourage you to go to your chosen market in person, ideally multiple times, and build a team and look at properties in person before you try to buy anything.  the market is tough right now, and if you try to do everything from you're computer, you're likely to buy a lemon and lose money.  and if you can't or don't have time to go there in person... i'd reconsider investing OOS.

not trying to be discouraging - just realistic.  see these threads.

tenants breaking leases and excessive damage make it hard to be profitable

Memphis Turnkey Tenant Turnover Costs

Sell at a loss or rent at a loss

https://www.biggerpockets.com/forums/963/topics/1195280-expe...

https://www.biggerpockets.com/forums/48/topics/1160450-run-i...

https://www.biggerpockets.com/forums/48/topics/1137397-balti...

https://www.biggerpockets.com/forums/52/topics/1010977-12-00...

@Sasanka Garapati

no offense intended but... i don't think there's any way for anyone on BP to advise you, since we just don't have very much information here.

can you try to find a local investor?  or talk to your agent?

good luck