All Forum Posts by: Scott Johnson

Quote from @Scott Johnson:

Quote from @Craig Cecin:

Hi everyone,

I am new to REI and have been doing as much studying and research as I can before diving in. I am looking to invest out of state because I am in the military and move around making any market eventually long distance, also live in southern CA which is expensive. I am looking at markets like San Antonio or Columbus at the moment.

My questions are, should I look to really nail down my core 4 team members and go for a BRRRR deal utilizing hard money for the purchase or should I look for something more or less rent ready (and less risky) and use my own money and a conventional loan right off the bat? As a new investor a BRRRR seems like a significant undertaking but also a terrific way to get my money back and reinvest it in a more efficient manner than saving up again for a 20% down payment for a more traditional buy.

Thanks in advanced!

 You're asking the right questions, but you're a bit ahead of the game with them. Glad to hear you're putting together your team, though!

What I'd ask myself first is, which market should I invest in and why? Then you identify the property you want to invest in, and finally figure out the strategy. 

A lot of people attempt to use the strategy as their guide when in fact it's the market, property & circumstance that guide you to which strategy is best. 

That said, what markets have you identified and what indicators are enticing you to invest there?

So true, you have to let the market dictate. Two months ago I was looking for a 3/2 BRRR in a particular suburb of San Antonio but none of the numbers added up. Since I had specific property search criteria I stumbled into a turnkey that ended up being a home run

Good afternoon, 

I want to do a cash out refi for one of my rental properties. I have two loan options to select from (30 year fixed and a 10/1 arm). 30 year fixed has an interest rate of 7.875% with a 54321 payment penalty. The 10/1 arm is at 8.0% with no payment penalties. 

I  don't plan on selling this rental property.  Which one is the best one? Thanks.

Quote from @Scott Johnson:

Quote from @Jeremy Lo:

Hello everyone,

I have a particular issue with my Property Management Company.

My rental property needed plumbing work done. My property managers told me the repair would not be covered under warranty without even talking to our warranty company. When I called our warranty they approved it stating the plumber would simply have to fill out a work order online for them.

When I told my property managers this, they repeatedly insisted that the repair was not covered under warranty and repeatedly requested to deduct from rental proceeds as payment for the repair.

Our property managers provided me with a plumbing company of their choosing and I begrudgingly agreed as long as I could pay the plumbers directly. Again, my property managers insisted on drawing funds from rental proceeds.

This disagreement went on for weeks.

Our property managers did eventually contact our warranty company, but whatever was said caused our warranty claim to be denied which meant I was stuck with the bill.

Out of pure exhaustion I gave up and allowed our property managers to deduct from rental proceeds who's attitude all of a sudden changed and stopped being argumentative.

Not only that but they sent me a generic POA form, telling me that they could not sign leases without it and that it was a "new rule" in Florida. They already have a managment agreement that describes what they're asking for in the POA and Florida does NOT require property managers to have a POA to sign leases by the way.

I stalled for months and sure enough, they renewed our tenant's lease, without a POA.

So what is/was my property management company trying to do? Why do they insist on deducting from rental proceeds? Why is my warranty company being told information that would otherwise deny a claim? How was this NOT normal wear and tear?

All we needed replaced was a water line in the kitchen.

I don't know why this wasn't covered under warranty.

Now we're at the point of replacing the drywall and my property management is again asking to pull from rental proceeds, and SURPISE SURPRISE the work isn't covered under warranty.......BECAUSE our warranty didn't hire the plumbers in the first place. How convenient.

I believe our property managers are siphoning funds directly from rental proceeds and/or receiving a kickback for the repairs and want to eliminate oversight from a third party warranty company.

Am I crazy?

Am I the only one seeing this?

Am I just going to have to suck it up and pay out of pocket?

This is my first and only property.

 They sounds super sus-burger helper. Even if they're being open and honest, if you're getting a woo-jah feeling, I'd start calling around to other property managers. 

Are they the lowest cost one around? What made you choose them in the first place?

 Thank you for your response.

We're a military family and had orders to move to another military installation in another state. We were notified 2 months after purchasing the home so things had to move quickly and we went with the first PM we found. Rookie move I know, but they were good up until the economic crash this year.

Quote from @Scott Johnson:

Quote from @Craig Cecin:

Hi everyone,

I am new to REI and have been doing as much studying and research as I can before diving in. I am looking to invest out of state because I am in the military and move around making any market eventually long distance, also live in southern CA which is expensive. I am looking at markets like San Antonio or Columbus at the moment.

My questions are, should I look to really nail down my core 4 team members and go for a BRRRR deal utilizing hard money for the purchase or should I look for something more or less rent ready (and less risky) and use my own money and a conventional loan right off the bat? As a new investor a BRRRR seems like a significant undertaking but also a terrific way to get my money back and reinvest it in a more efficient manner than saving up again for a 20% down payment for a more traditional buy.

Thanks in advanced!

 You're asking the right questions, but you're a bit ahead of the game with them. Glad to hear you're putting together your team, though!

What I'd ask myself first is, which market should I invest in and why? Then you identify the property you want to invest in, and finally figure out the strategy. 

A lot of people attempt to use the strategy as their guide when in fact it's the market, property & circumstance that guide you to which strategy is best. 

That said, what markets have you identified and what indicators are enticing you to invest there?

Thanks for the reply Scott! So I think I've narrowed down the markets to between San Antonio and Columbus. Both seem to have good indicators of population/job growth and rental indicators. My goals are to buy SFH or small multifamily and hold long term. One benefit of San Antonio over Columbus is that I know someone already in that area who could keep and eye on my rehab/properties. I understand BRRRR is inherently more risky but it seems like the best and quickest way to keep my money moving and aquire more properties. Any tips for finding and interviewing team members? 

@Scott Johnson The seller was a distant cousin to the person that died. She believes the deceased did not have any living relatives and did not leave a will. The attorneys won't be helpful in this scenario because this is about family members not filing wills that went through probate. 

I am hoping a lawyer from Pennsylvania will come along with a solution.

So I make $65,000-$70,000 a year. I owe $80,000 on my home which is now worth $460,000. My question is should I sell my home & by 2 with 1 small mortgage or use equity & buy one. I can get around $2,000 in rent on my primary home now. My mortgage would be high due to rates. I’m very nervous about renters either not paying or trashing the place & not really leaving me enough financial leverage to pay. i think i know what I’m going to do probably sell my house. BUT IM CURIOUS OF WHAT OTHERS WOULD DO. Every opinion is welcome.

So I’m jumping into real estate investing. 

Have access to about $300,000 (not planning on using it all at once.)

There are so many different strategies, LTR, STR, MTR, BRRRR, tax lien foreclosure etc.

Is there a book or course I can buy that goes over all the different strategies?

Maybe a personality assessment test I can take that will match me up with the right strategy for me personally?


I know this about myself, I love learning, building systems, and the joy of completing the project…

But then I want to be on to the next thing. 

Quick communications is my love language, but I know I don’t want to personally be taking calls from angry tenants to deal with issues. (I know that’s where a good PM comes in.)

I’ve read half the Rich Dad series and took their course.

But still feel like the only strategy recommendation for a newbie is 2-4 Plex’s, which every other investor seems to be doing as well. 

Like the idea of BRRRR and MTR, but know little to nothing. I also have no rehab knowledge personally.

Any specific guidance on books, courses, masterminds, mentors etc for strategies and implementation?

I’d rather follow a proven system. 

Recently Completed real estate course, getting ready to take my tests. Driving trucks right now, drive away work. Ready to get out of it and do real estate. I travel a lot and see a lot if distressed properties tbat coukd easily be flipped for mega profit, all over the lower 48! Looking for investors to help me make some dreams co.e true; mine, tbeirs and new homeowner hopefuls. 

Hi everyone,

I am new to REI and have been doing as much studying and research as I can before diving in. I am looking to invest out of state because I am in the military and move around making any market eventually long distance, also live in southern CA which is expensive. I am looking at markets like San Antonio or Columbus at the moment.

My questions are, should I look to really nail down my core 4 team members and go for a BRRRR deal utilizing hard money for the purchase or should I look for something more or less rent ready (and less risky) and use my own money and a conventional loan right off the bat? As a new investor a BRRRR seems like a significant undertaking but also a terrific way to get my money back and reinvest it in a more efficient manner than saving up again for a 20% down payment for a more traditional buy.

Thanks in advanced!

I would like to request your assistance for suggestion on which bank offers 1st lien heloc account.    Thank you in advance