All Forum Posts by: Nicholas L.

@Brandon Morgan

for a fixer upper, you would not typically use conventional financing.  instead, many 'hard money' lenders will lend on the purchase price and the rehab cost (most will still require a down payment.)  i would find out which companies other investors in your area are using and approach them about your potential project.

turn key vs fixer upper - you'll have to make that determination for yourself.  one question is, do you have the time, energy and interest to oversee a big rehab?

@Chaston Hughes

can you start with a house hack?

House Hacking: What Is It, How to Start, and Strategies for Success

@Steve Bob

it really depends.  a lot of us don't invest primarily for appreciation, so it's hard to look at it only through that lens.

can you start with a house hack?

@Leo Szac

are you going to meetups?  I'd go to meetups and see what others are doing

agree with staying 1-2 hours away

how about somewhere in PA or NJ?

@Steve Bob

definitely not the first option.  you don't get enough appreciation in 6-12 months to refinance... that will not happen.  and those are very difficult properties to manage as you seem to know.

why do you then make such a huge jump in price?  what about the middle?

@Chaim Mal

stay within an hour or two of your home base so you can be in person and hands on

PA or NY or NJ somewhere

go to meetups, look at properties, build a network

if you buy a random 'cheap' property thousands of miles away you'll probably just lose money

good luck

@Stetson Oates I think what you're saying is actually compatible with what @Joe Villeneuve is saying.

the goal of real estate is to MAKE MONEY.  and for a new investor, dumping every cent they have into a single property can be highly risky.

i want to get to where @Calvin Thomas is.  to get there, i'll need debt.  so i'll get smart debt - fixed rates, long terms.  most of my investment loans are in the 4s too with one in the 6s.  then i'll pay that debt off.

this is why new investors should house hack.  it reduces their risk because almost everyone has a housing payment.  and it leverages their housing payment to invest.  i still can't tell what strategy OP is looking into.

@Jay Hinrichs

yes great point. even in just the closing - lots of different folks involved with different responsibilities.

a lot of folks are also coming in now and still digesting content from 2012-2019.  so they watch the Brandon Turner webinar or read his old books and they're ready for their "cash flow."  and even Brandon is saying LTRs aren't what they used to be.  not sure what to do about that...

@Vishal M.

do you have a team there that you know well and are confident in?  can you go there in person to supervise the process?

if no... then no, not a good idea

good luck

@Yasmeen Neal

No, I just mean validating all of the numbers and assumptions that the provider is making, from taxes and insurance to capex and estimated rent increases.  You should run your own numbers - everything that they're providing is just an estimate, not a guarantee or a promise.