All Forum Posts by: Nick Shri

I totally recommend anyone who could qualify for FHA to go for it. At 3.5% down payment, its a no-brainer investment strategy. I hope you made your move since you originally posted @Callaway Pate!! If not, attend Nova Investors meetup, there are quite a few house-hackers you may want to speak with.

Tim - welcome and congratulations on starting the journey. $1.5M can go a long way. You can buy a small, mid-size apartment complex that CFs well. Since you like to fix up things you can buy a complex that may require some TLC as well as room to grown rents. You can also consider buying a portfolio of SFHs and manage them. $30k as down payment on a SFH or (1-4 unit MF) will buy you a $120K property. You can get up to 10 conventional mortgages, you could use rest of the funds towards non-QMs. You can mix and match the asset classes in your portfolio - couple of SFHs, couple of 1-4 MFHs, 1 or 2 small 5+ apt complexes, your possibilities are endless. Can you build a couple of small units on your ranch and make the STRs? Now you have an income generating land which you could use to buy more properties. There is no one smartest way to leverage your $2M ranch, all can depend on your investment goal/criteria.

Cheers!!

You don't need to purchase 2nd home to cash-out refi, you can do it while you are living in the current home. You plan to take the cash and buy a STR in the Smokies? I am not an Oracle who could see/predict future, but just keep in mind, economy is slowing, news of less vacay spending is all day everyday (you can discount it as noise as well or take it FWIW). Now, if you really decide to go ahead and buy a vacay STR, my recommendation is to Cash-out refi your primary. You will have fixed interest rate. With Heloc you end up with variable (sure you will have more cash to play with for first 10 years but that also comes with the variable interest risk). I see CO refi little less risky.

Definitely search what questions to ask banks or loan officers here in the forum, there even podcasts on those questions > its discussed plenty of times. Connect with lenders who lend for STRs in the smokies specifically. Good luck...

Not to discourage you Carlos, I have found folks working on apartment deals to be actually working, out on the field and not spending time on BP (well, they do but little). You will however find tons of syndicators here on BP, you could perhaps take that route. And if you come across anyone interested/experienced please ping me, I may perhaps join in on the deal. I have been looking for experienced apartment buyers/managers myself.

Properties may loose value if they are in D class neighborhoods, or the neighborhood/town is dependent on Amazon fulfillment center. C class properties most likely will hold value, B class properties will increase a little and A class may hold or up a bit.

You have got some solid advice in above posts as well as questions you should ask yourself. If you paid off your 70k student loan (thats great), then what? Where are you going to bring funds that will help you buy another property? You are generating 18K currently, hopefully you will generate same or 2% more of that next year, you may be in position to keep this property and go for another property using same house hack strategy. That will build your portfolio as oppose to getting out of the game completely and trying to re-enter.

Everything that is mentioned in above 2 posts and then go out and house-hack! Buy a duplex if possible, rent out the other side and any additional room in your side or a SFH and then rent out the rooms. Goodluck...

Curious to know, why are you specifically looking at STR in Frankfort KY?