All Forum Posts by: Sunshine Bizz

Thank you @Michael Bertsch, you have answered all my questions and provided some feedback that i was not even considering. 

Regards, 

Thank you @Grant Diggles, appreciate your feedback. Great advice. 

Age of Rental Property, Brick or No Brick .. Whats is preference?. 

Hello BP Rental investor community. I am getting close to making my first offer for a rental property. Here are few questions i am sure others are thinking through as they are getting close to pulling the trigger on their first:

- Age of the property, whats your preference if you willing to invest about $5k to $10k in the property?

- Brick or no-Brick ... any preference on that?

- School ... do we really only care about the top schools or we can get away with medium-quality schools?

Thank you for your feedback in advance. 

Regards, 

Sunshine

thank you for your comments @jeff

Good afternoon all - Here is more details around why i felt this maybe a good strategy. 

Step 1 --- Buy from bank money (plus 25% down) properties that banks are comfortable lending. What i have learned is they dont lend to fixer upper and / or $40k properties. If that is true, i am left with options to look for MLS and Craigslist and look for best deal. Yes, the math will not be generating me much positive cash flow but that leads me to the second point below.

Step 2 --- With what liquidity i have, purchase turnkey properties in $70k (plus / minus) and use that cash flow to pay down properties acquired in Step 1. This investment will come from my pocket and not from any bank. 

Step 3 --- Use HELOC to keep paying down properties in Step 1.

Hope this clarifies my situation a bit and would appreciate any feedback if above strategy would work. 

Question still remains the same, what type of property would you buy using bank money (plus 25% down) if you were in my situation? You cannot buy a fixer upper, you cannot buy too risky properties, you cannot buy $40k properties. Unless i have read-up on things incorrectly here @ BP. 

Thank you again for feedback and guidance above. Regards, 

Thank you for your response. Appreciate your guidance. I will follow-up with a few more questions based on your feedback. 

Hello BP awesome community. I am in the process of buying $150k properties using 25% down payment. I have done the math, i will break even without any cash flow. 

Question ---> If that is the case and i will build asset in 10 to 15 years after paying it down. Should i focus only on appreciation for this type of transaction? Should i only invest in areas with best schools that has a track record of more appreciation than others?

Question ----> What types of properties would you buy from Bank's money? 

Thank you

thank you for feedback gents, appreciate it.

Regards 

Michael - Good morning, this was my exact concern as i am starting out. I detailed this out in my thread for which i am hoping to get some feedback. 

Here is what i posted:

https://www.biggerpockets.com/forums/61/topics/445...

Happy to brainstorm ideas with you, i have done as much research as i can and now starting out on this process. The sequence of steps is i believe very critical. 

Happy to get your feedback on my thread that  i started. 

Regards, 

Build my Portfolio - One step at a time - RE experts, please help wake me up if i am dreaming!!!

Background: Credit scope 722, wife has better. Income is good (over $200k) with solid jobs. Have funds in the bank but would like to build foundation that  i can leverage over and over again. 

Step 1 --> Get unsecured lines of credit in the amount of $150 while i have a job and have cash reserves

Step 2 --> Possibly get HELOC to get even more leverage while i have a job and have cash reserves

Step 3 --> Get some deals going with high % interest rates with crowd funding so i have established myself enough and can leverage down the road even more while i have a job and have cash reserves

Step 4 --> Buy $100k to $150k properties in B neighborhoods having net ROI of about 7% that banks would not have issues re-financing down the road or take it in as part of portfolio loan down the road while i have a job and have cash reserves

Step 4 --> Once i have build enough equity in these rental properties, now i try to re-leverage my HELOC, Credit Lines and Crowd Funding to keep expansion. 

Yes, i can buy properties right now with cash but i want to establish my profile that has Crowd Funding, HELOC and LOCs so when i really need the funds to grow, i have an established history and profile that is strong enough to help with next wave of my growth. This is when i wont have too much liquid cash and maybe jobs are no longer there.

Appreciate any guidance guys, i am new at this and trying to line up the right sequence. 

I struggle here quite a bit because some of the responses i read here would say "it depends on your situation". I have shared above my situation and would love to get your investment advice. What would you do in my shoes?