All Forum Posts by: Tucker Cummings

Completely agree with others on this post. Take care of the taxes, once you're free from that, you'll have more personal cash flow and will be able to save up emergency funds and contribute to your IRA much easier. Once you have the debt paid off, and a good cash cushion, start hunting for that first deal! Good luck!

$200-$300 / month in cash flow seems really low. I’m not sure about your market but in mine I can pick up single families with $400+ / month in cash flow and only have to put down 20k.

Can you negotiate the price down or are there any rent/appreciation growth opportunities?

@Marlia Stone, Yes I funded the entire first deal myself. I bought it for 77k, put 15k of work into it, then it appraised for 124k, and I got a HELOC for 80% ARV and pulled out 99k, so profited 7k off the bat. Once I had that happen, some people on BP noticed, family & friends saw what I did too and now I have people helping me fund deals as private lenders. Already doing 3 deals in 2021!

For the second point, yes, you're taking on the role of a mentee/intern. Go into knowing that you're doing the grunt work but getting an education and building relationships. After a year or so, you'll hopefully have more money saved up for investing as well as a team that can help you get the deal done.

It's awesome you're taking steps towards getting your first BRRRR deal! I was in that boat last year and wrote down every HML I could find and called every one of them... Unfortunately I quickly learned that it's really tough to get started when you don't have any experience. Last year, during COVID, nobody would lend to me since I didn't have any experience. I had to save up my own funds in order to BRRRR my first property on my own without lenders. Certainly tough, but it got it done.

If you're not in a position where you can save up your own funds, your best bet might be to just put yourself out there in the RE community to see if anybody would be willing to partner with you. In exchange, do the grunt work that nobody else wants to do. Don't ask for equity in the deal, just take it on as a learning experience. Then once you've done that a few times, you can take your experience and the connections you've built during that time to a hard money lender and they might be more willing to lend to you. 

What helps me is to just put it on paper. Write down the step by step process of what needs to happen between now and having your first rental rented out. Break it down into substeps, who do you need to help you (agents, contractors, property managers, etc), and when do you want it done by? Now you've got your plan in place and all you have to do is execute!

@Will Fraser it may be different in every market, but if the middle/small multifamilies are not so great to target, what would you recommend? 20+ units? 30+, 40+ 50+ etc? I guess what would be your minimum target?

@Kenton LeVay thanks bro, I didn't even think about the tax implications come tax time.

I've got stocks, IRA & 401k and was just wondering - if I ever want to use funds from these as a down payment on a house, or towards a BRRRR strategy, etc. would it be more advisable to sell the stock or take a 401k loan?

Selling the stock would just be done and I'm not on the hook for anything, 401k could have potential penalties, but the benefit is I'm paying myself interest. They're both the same asset class (stocks) and I'm leaning more towards stock sales, but I'm interested to hear BP Community thoughts. 

anybody else just see the numbers and know that it's 75?

Speaking from experience, when I first got started investing away from where I live, the first person I got was my property manager.

Property managers are usually extremely well connected because they need people to do repair work, they know agents that bring them clients and tenants, they know other investors and their networks, they get sent off market deals, the list goes on. Once I had my PM in place, everything else was incredibly easy.