All Forum Posts by: Nicholas L.

@Brad Hunton

Congratulations on your progress - that is awesome.  I think I am in a similar position to where you were last year... I have 5 doors, and trying to figure out how to scale faster than one every 1-2 years.  Similar to you my wife and I are trying to replace all of our W2 income with rental income and aren't there yet.

All your moves make sense to me - kudos.

Question - how'd you find the off market deals?

@Christine Smith as in - say you posted here that you were going to BRRRR a house, take all your cash out, and break even on the monthly rent. OK, not a great deal (and @Joe Villeneuve would hate it) but at least your cash isn't tied up.  Here, you're saying you'd invest $100K down, plus closing costs, in order to negative cash flow?  There are CDs paying 2-3% now - you could put the money there instead.  That's why I asked what your goals are.

@Christine Smith OK - that's a lot of cash to have tied up in a cash-flow negative property.  I'm not as worried about the negative cash flow as I am about this being what you invest in.  What are your overall goals?

@Felicia Gossett it's a bad time to rush in because you feel like you have to buy something.  It's a good time to find a good deal that makes sense for you.

@Christine Smith are you just practicing, or is this on an actual property?

@Ellen Womack

As others have asked... what kind of loan do you have on it?  

You probably don't want to do the following... but you could move into a place that you rent, rent out the other side, use that rent to increase your savings, and put the whole duplex under property management... 

@Mike Kundla OK - pick a market, attend REIA meetings, network, build your Core 4, and start looking at properties in person. It took me 16 months to find my first property to BRRRR. Buying the wrong deal is way worse than waiting.

@Evan M. OK - can you say what market you're looking in, or what state?  Are there any markets in Colorado that cash flow?  I understand that if you're in Denver, for example, it may be too expensive, but I think folks in high cost states are sometimes too quick to go 2000 miles away instead of 100 or 200.

Have you called any lenders to at least discuss DSCR loans?

@Mike Kundla a few thoughts and questions:

-Wanting to make a good decision is not "analysis paralysis."  You're fine.

-Out of state STR and LTR BRRRR are completely different animals.

-Are there markets within driving distance of you that cash flow?

@Scott E. serious question - do new investors have any business not getting more conventional financing?  I'm not disagreeing with you, I'm genuinely asking.  Because my first thought was... what if interest rates continue to rise?  How will they just "refinance out"?

They can likely get a 30-year, fixed rate DSCR loan in the high 7s or mid 8s. If this sinks the deal... it's not a good deal.

@Evan M. I want to know more about this property and why it appeals to you:

Is it on market, off market?  

How far away?  

Have you made any offers yet or is this your very first?  

How much will it rent for?