All Forum Posts by: Stephanie N.

You can't do a HELOC on an investment property, For that reason, if you're house hacking, it's always better to get the HELOC before you move out of the property.

One suggestion for future financing, look into Bank on Yourself policies. It's a great way to build a cash vehicle that you can tap into at any time and the money will continue to grow for you even while you're accessing it. It has much lower interest rates than a HELOC and comes with some additional unique benefits. I have personally used these policies to fund investments and renovations. Full disclosure, I am a Bank on Yourself Professional and would be happy to tell you more about it and determine if it is right for your situation.

Have you heard of the STR tax "loophole"? I would reconsider doing STRs for that reason so that you can potentially take a loss against your W2 income. This is something I hope to do in the future as well. I believe you would have to self manage though.

There's an investor/syndicator I follow who puts out really helpful data presentations each year. He is a former data scientist that suggests the data points you should look at in evaluating a market and I find a lot of value in these presentations. I would recommend giving this a read through, starting on slide 10: https://drive.google.com/file/d/1756isvsW-LGMI1yIgWPMZ9lnbb8...

@George Baal I would recommend taking out the HELOC to start but given the high variable interest rate, I would then consolidate that debt into a better financial vehicle. There's something called a Bank on Yourself policy that sounds like it could be a good fit for you. I have one myself that I funded after selling my SF home and once I set up my policy, I took a low, simple interest (5.5% for me) loan that I then used to purchase a 4 unit MF; now I'm using it to fund the renovations. Best part is, my money continues to grow even while I have a loan out due to something called a non-direct recognition loan. This will allow me to pull even more cash flow from it in the future to use for more investments. If this is something you might be interested in, I'd be happy to chat more with you.

Hi Aaron, is the condo not going to cash flow because you'd hire a property manager? If so, I would consider going forward with your plan but self-managing the condo for now for the sake of cash flow. As rents grow (assuming this is in a good area where population and incomes are increasing), you can then bring in the property manager and cash flow.

Hi Dana, congrats on taking this next step! I would recommend finding a property that can work as more than just a MTR so that you have multiple strategies to fall back on if one doesn't work. With that said, I'm doing MTR as well and if you haven't come across it yet, Furnished Finder has a great tool for understanding comps in your chosen area: https://www.furnishedfinder.com/stats

@Justen Ashcraft did you end up finding a definitive answer to this? I noticed the same thing in my loan docs and am curious what the official answer is.

Hello! My boyfriend, @Devon Moore, and I set out on a goal for the year to meet with at least one individual or couple each month who is passionate about their real estate journey. We're generally looking to network more and surround ourselves with more people that are on a similar path.

We currently have 2 properties between the two of us - a three family and a four family. Devon is a licensed real estate agent in MA and building a lead generation business. I am a soon to be certified Bank on Yourself insurance agent and use my own policy to fund my deals.

We're near the NH Seacoast / MA North Shore and would love to meet some fellow investors in the area. Reach out if you'd like to meet us for a coffee!

Hey Joab, getting interested in the idea is a great first step! In addition to reading the books and going to meet ups, I'd also recommend the BP podcasts. Here's why I love some of their podcasts:

- On the Market - gives you a better understanding of the trends in the market, across the US right now. It gives you a good idea of some of the data to search for in your area to better understand the market you're investing in.

- Real Estate Rookie - it's designed for people just like you who are getting started and seeking to understand terms, concepts, and processes...it's like a crash course to build knowledge in real estate

- Bigger Pockets Podcast - this was their first podcast and it contains invaluable examples of other investors, situations they've encountered, and how they got to where they are today. I find this especially helpful to learn from others mistakes (and their successes) so that I'm thinking through the right things on my own journey.

Good luck in building your knowledge! Once you feel comfortable, I would encourage you to jump in and get started. There becomes a point where you're either stuck in analysis paralysis or you're doing the damn thing!

Hi Tate, you have some great ideas there as far as what to do with your current property as you purchase the next. The only caution I would provide is, while you know the market well now, what is the trajectory for your market? Are jobs continue to grow YOY? Is median income growing YOY? Are properties still appreciating at the same rate or are they leveling off? I don't know your market but these are metrics I would begin looking at to determine if this will still be a good market to be in years out.