All Forum Posts by: Paul Novak

Hello,

What are the best ways to market a long-term rental you just bought? I'm a newbie real estate investor, and my husband and I are planning to buy our first property this year or next. Renting for all my independent life now, I've noticed rentals I've found were on certain platforms being advertised, like craigslist, apartments.com, Facebook marketplace, and landlords posting to their personal social media accounts.

However, I can't imagine these avenues being the only advertising methods, when you have something like vacancy to fill. I think you would need to diversify as much as possible to get the word out. Are there other platforms and strategies to advertise long-term rentals? Do I need to be a certified real estate agent in order to advertise my rental on the MLS, like Zillow?

Are there any marketing resources in the BiggerPockets community that I can also look at? Thanks in advance!

@Chandra Faulk I’ve just listed a 2/1 apartment in New Hampshire. In 5 days I have only gotten about 10 inquiries. 3 months ago when I did my last listing I had 60 inquiries after 5 days. Markets are slowing and we’re in an off-season now.

Depending on what the issues are with the credit scores I might consider lowering my credit requirements. Especially if it’s younger applicants.

So far the only applicants I’ve gotten on the hook for my unit were a younger couple who were very upfront that their credit was a little bit challenged.

I encourage you to be flexible but still be sure to use sound judgment.

I am in the Oklahoma area. How long does it take to screen a tenant and find a qualified one for LTR? We have had our house listed for rent for 1 month now, and have not found a qualified tenant. We are using RentRedi for screening. We have lots of interest and showings, so we feel our rental rate is right at market. There just seems to be a lot of credit and/or background issues with prospective tenants. We list on Marketplace, Zilllow, Realtor, etc.

Hey guys! I'm a real estate investor based out of San Diego, and I currently own a duplex in Vista. Super excited to connect with other investors here and share experiences. I've been diving into real estate for a while now and always love meeting others who are navigating this crazy, but rewarding, journey.

Looking forward to learning from everyone, swapping ideas, and hearing about different strategies you all are using. Whether it's about deals, property management, or anything in between, I'm all in for a good conversation!

Hello Team,

I am  looking at my outstanding credit card debt which is at ~25k would it make sense for me to consolidate this debt to a lower interest loan? 

Any advice or pointers would be greatly appreciated!

thx

Carlos Richardson

Hi Paul,

You're in a strong position with your portfolio, and both strategies have their advantages. Here’s a streamlined perspective:

Your current approach, putting more down upfront, minimizes risk, increases cash flow faster, and allows you to build equity while reducing overall interest. This aligns well with your goal of achieving $11K/month in cash flow and retiring within 5-10 years. It also gives you stability in the event of market downturns or unexpected expenses, allowing you to lower rents if needed without feeling financial pressure.

The alternative leveraging more with 20% down—would allow you to acquire properties more quickly, accelerating your cash flow goal. You’d benefit from faster appreciation, tax benefits, and rental increases. However, this increases your exposure to risk, especially in terms of vacancy, repairs, or market shifts. Lower immediate cash flow and higher mortgage payments would extend the timeline for paying off properties and add interest over time.

In essence, it’s about balancing risk and speed. If your focus is on minimizing risk and ensuring consistent cash flow, your current strategy works. But if you’re comfortable taking on more leverage to acquire properties faster, the second approach can help you reach your goals sooner. A hybrid approach purchasing a few more properties with 20% down while paying off existing loans, might give you the best of both worlds.

Let me know if you need any further guidance on running numbers or fine-tuning your strategy.

Best,

Drago

Any recommendations for a free or inexpensive app for tracking expenses and mileage? New to real estate and hoping for a simple way to track. Thank you!

I know this may sound simple and unorthodox, but I think you should try to BRRRR as much as possible. By using the BRRRR strategy, you only need to put down money once. After that initial down payment, the bank will basically be financing your investments. You'd buy an off-market, distressed property, fix it up, rent it out, refinance it, collect your money from the refinance, and repeat the process. This way, you only need to invest your profits once.

Overall, I don’t think you should keep buying more properties and making down payments repeatedly. That approach involves a lot of work and spending, and there are better strategies to utilize. By BRRRRing, you can achieve your goal of acquiring four houses with minimal effort and financial strain, allowing you to shift from buying to paying them off. Plus, you’d probably reach your goals faster with that plan of attack if executed properly. I hope this provides some value to you.

Lotus

Thank you to everyone for your input! Here's the summary of opinions:

• Against: 7
• For: 4
• Neutral/Alternative: 5

My New Plan:

Instead of cashing out my IRA/401(k), I'm considering borrowing from my 401(k). Here's the breakdown:

• Loan Amount: $50,000 (max allowable amount)
• Interest Rate: 9.5% (interest goes back into the 401(k))
• Repayment: $524.24 twice a month over 60 months (max allowable time)
• Total Repayment: $62,908.67 (including $12,908.67 in interest)
• Fees: $75 setup fee + $6.25 quarterly fee (totaling $206.25)

Additionally, I have a taxable brokerage account with a modest capital gain and a tax rate of 15%.

Total Funds for Investment:

Combining the $50,000 loan with the funds from the brokerage account, I’ll have the down payment for another property.

I’m excited about this new plan and looking forward to your thoughts and advice!