All Forum Posts by: Scott Kaczmarek

@Tracey Leung - I have always visited the TK provider prior to investing. I have met with several companies in the same market(s). In my mind, the company you partner with is the most important part of out of state investing. Site visits allow you to meet the team, see the operation and ask all your questions concerning the properties they buy, their rehab process and property management. Then you tour the areas they operate in to make sure the neighborhoods and houses match your expectations. I’ve always said I would spend the $1,000 (flight/hotel/car/food) before investing $30k-$40k with any company. Better to spend the money to visit even if it means you rule out working with a company!

@Kyle Bliss - not Clayton Morris...sorry, couldn’t resist!

@Tyler Hardy - my wife was not totally on board when we started REI either, but it was mostly due to her fear of risk. She was concerned that if REI didn't go well we'd end up in a tough spot. My solution was patience. I built a cushion big enough to invest in RE and being able to handle the bumps. My advice would be to not use a HELOC on your primary but rather save cash for the down payment and still have a cash cushion. Yes it takes awhile. However, my wife wanted to know we weren't stretched. Your wife may have the same thoughts. Respect her concern and through a solid cash position, show her how you covered your bases. BTW, my wife now likes our REI. She feels that we're safely invested and loves the monthly cash flow! My best.

@Brigham Bailey - I'll piggy back on the advice about W2 income being the best source for showing lenders you're a good risk. The only thing I'll add is in addition to saving for the down payment is to build a solid cash cushion. What gets REI in trouble is buying an investment property and using all their cash as a down payment. Having a solid cash cushion helps when there are bumps in the road with either your career or capital expenditures required by your rental property. My best to you.

@Ali Boone @Caleb Heimsoth

I agree Ali. I’m not trying to sound like a jerk, but maybe you bought the wrong turnkey or perhaps your goals were different?

@Jay Hinrichs - it’s the amazing modern day we live in! All though my old F250 diesel won’t abide.

I’ll say that I do appreciate your input into these forums. I’ve learned a lot from you and thank you for your input and participation. Thanks Jay.

@Jay Hinrichs interesting! Sounds like the appraisal field is much like the trucking industry. When was the last time you looked into the cab of an over the road can and saw anyone under 50

@William Ford - I’ve considered this approach and I’m curious. Are you buying this through a private sale or from a company offering property management (they’ll rent it for you)? You mentioned AirBNB, but is that your only option?

@Ron James. - How long do you intend to hold the property? If you’re intention is to hold for a short period (I consider that less than 10 years) you might consider not putting forth the additional cash. I say might only because I agree with others that have stated appraisals are one person’s opinion. If you choose to bring more money to the closing table, do your numbers still support the additional outlay? If the house is renovated to a high degree it may still be worth the investment.

Funny enough that @Jay Hinrichs mentions the changes he’s seen with lenders regarding appraisals. I bought a new primary residence 2 months ago and the lender came back to me and said they didn’t need an appraisal. I was putting 25% down and I know the buyer underpriced the house 5%. Since I bought the place knowing we were going to stay there at least 10 years, I was okay with proceeding without the appraisal.

@Nicole Heasley. - sorry for the last post...hit the wrong button.

It’s a tough position. Like some have mentioned, I’d probably cut the Jeep loose and sell it. Then go buy an older reliable car such as a Honda or Toyota for cash. Historically they are good cars and should last awhile. I hate buying cars since you need one but they are a money loser. I recently bought a ‘02 F250 with a 7.3l which should last a long time and I need a truck.