All Forum Posts by: Nicholas L.

@Trevor J Dammon

I think what you're missing is the value add aspect.

Simple example: you could BRRRR a single family home by purchasing with borrowed private money. You pay the investors interest during the rehab portion, then refinance into a conventional or DSCR loan, and pay the investors back, paying the private loan off.

You now own a house, and the investors got a good return on their money.

That's just a simple example - as others stated there are tons of ways to do it.  But my point is there's usually a value add component.

@Anthony Huston

welcome.  can you say roughly where you're located?  and do you have some cash in addition to your home equity?  real estate investing takes cash.  there's no way around it.

it's an interesting time to be investing. prices are high and it's tough to find deals, but there are also a lot of different types of investing, as well as legitimate, investment-friendly loan products and options, like DSCR loans.

i'd start small and slow by buying ONE property, putting it under property management, and seeing what you think.  maybe you'll hate it.  maybe you'll love it.

unless you find a killer, off-market deal, your monthly net cash flow on any old LTR is likely to be at most a few hundred dollars.  but you will also be building equity.  so that's good.

hope this helps, looking forward to further dialogue.

@Keisha Jean-Charles the BRRRR method is very expensive and cannot be done without at least a fair amount of your own cash.  All of the fees that are in addition to the purchase (two sets of closing costs!) get glossed over on BP and they are non-trivial.

House hacking with a low down payment is a solid strategy.

@Mike Flynn in general the best deals are never listed on the MLS. Could you maybe possibly do something with an expired listing or something that's been sitting? Sure. But this would be the exception. And the seller agent's commission isn't going to make or break a deal.

@Ryan Cleary kudos to you for this sabbatical or mini retirement or whatever it is - that's awesome.

You're in a strong position with your 4 properties.  No reason to over-leverage or try to do something 'creative.'

Just curious, do you have a rough plan for where you'll live and what you'll do when you finish sailing?

@Jan Kargulewicz

I have found that properties that sit on the MLS actually aren't generally good deals.  It means that the seller is holding out for an unreasonable price, or it's priced too high, or there are issues, or a combination of things.  If they were going to take a lowball offer, they already would have.

Seems counterintuitive, but that's been my experience. When good deals hit the MLS they get snapped up.

On to the next one.

@Robert Ruschak

you have some great responses in this thread.  After a few years of investing I've found that building equity is powerful, as David Greene has been pivoting to saying on some of the recent BP podcasts.

so whatever you're investing in - make sure you're building equity. this could be through value add, or mortgage paydown, or rent increases, or a combination.

@Maggie Blackburn 

I don't know the Brooklyn market, but I like how you're thinking about this.

What do the numbers look like once you move out and rent the whole property, say in year 2 as you mentioned?  And do you plan to stay in the general NYC area?

@Colby Burt

serious question - have you looked into buying a place and making it a STR? or is that not an option for you at this time?

@Stephen Keighery have you looked into DSCR loans? Some will loan 70-75% of appraised value and don't require waiting 6 months. Call a bunch of brokers and see what they say.