All Forum Posts by: Ryan Howell

I would probably consider a portfolio lender. My thoughts are you're going to pay more in interest compared to conventional, but if you could go conventional for all/most of the properties, you're going to probably pay more in bank fees / closing costs. You can only use traditional for 1-4 unit properties, plus you have to meet the DTI requirements which might be tough with 43 units. You might could do a hybrid and do both. You'd have to have the first lender agree to release the liens one by one.

You can't buy your way out of debts/liabilities.  I would suggest getting rid of liabilities and focus on making your business profitable and reduce expenses first, then you'll be well positioned to start buying assets.  You need the stable foundation.  That said, if you can combine investing with reducing expenses via house hacking in some way that is a win/win (if you're renting or paying a large mortgage on a personal residence, selling to get into a duplex and use the rent to offset your mortgage, helps your balance sheet and your budget).

Either if the numbers work.  Depending on your market, a duplex generally cash flows better, but may be harder to find.  I've had good luck in my area with off market duplexes.  They are easy to spot, then try to find the owner and get in contact with them.  You can do the same for distressed SF.  I like multifamily because you can keep one side rented while renovating the other and makes it easier on your wallet getting started.

I agree with Joe.  They may see value in financing it from an annual budget perspective.  Otherwise, just counter the price.

Start reading, listening to podcasts and attending your local REIA regularly. Get clear on your goals and your strengths/weaknesses and as you start learning various strategies you'll start to align with what would be best for your situation. I recommend The Book on Rental Property Investing by Brandon Turner and Millionaire Real Estate Investor by Gary Keller along with Rich Dad Poor Dad.

@Jake Chenoweth - My suggestion is to align on the future you and your wife want and lay out a plan to get there, work backwards and show how real estate is one of the most powerful ways.  Ultimately, if she's not on board, then don't invest.  Put your marriage first.  

Real estate is sometimes a roller coaster with ups and downs, I guarantee you if you're not both on board, when things are rough, it will be that much harder.  When you're both in agreement and support each other, it goes much easier on the hard days.

Find a single family home with a walk-out basement (they are common in my area of Asheville, but not everywhere). I try to find them with a separate bathroom in the basement, to make it easier. Then you can renovate and make it into a 2 unit, rent out the basement to help your DTI. Be sure to buy in an area that allows 2 units. Also, if you want to add bedrooms, try to buy on sewer. Around here, multifamily is so hot, that a SF with basement gets overlooked and can sometimes be the way to go.

It depends on a couple factors:

How is your ability to get a loan right now (are you maxed out on DTI)?

Do you have a lot of equity in your home?

Do you love your home and will regret selling?

If you're maxed on on DTI, you will need to sell. If you can buy something much cheaper where you still can buy an investment and BRRRR, then you don't "need" to house hack. If you can't buy something cheaper than a house hack is your best bet.

If you have margin on DTI and have a lot of equity in your home, then it depends. If you really love the home, do a HELOC and start BRRRR'ing. If you don't have a preference to keep the home, then a house hack is going to free you up to start scaling faster and grow your portfolio, but you're trading some convenience.

This is the process I walk through with all my new investors. If they come to me and say they're approved for $400k, then I tell them to buy at $250k, so they have some margin for the second deal. Once the "ball" is rolling (you start getting rental income to offset your debt payments) your DTI stays fairly flat as you scale, but if you buy a single family at $400k and then want to invest, it will be a much slower process.

I'm still buying and helping my investor clients buy.  

Nice job!