All Forum Posts by: Tucker Cummings

@Matthew Horstmyer Yes, SFH right now. So 3 houses, 3 doors. Scaling into MF as quickly as possible.

@Lydia T. Said it best. Can’t add more to it. If you just quit your job to wholesale, I’d go ask for your job back.

Also, wholesaling is not investing. Its just real estate trading, same way that trading stocks isn’t really investing. Saying this as someone who also assigns property.

I would encourage you to not think of this as you asking for money. Instead, start thinking of this as an opportunity and you’re gauging interest on who wants to be a part of the opportunity. It’s a business “transaction” not a “favor.”

A favor is one directional “hey I’ll help you out, here’s some money.”

A transaction is “hey here’s my money to do your deal. In exchange I’d like X points and Y interest.”

I’m also in the just starting out phase, but it sounds like a little further along than you. My personal preference is having $5,000 per door, which sounds similar to @Michael Swan advice towards the upper end of his recommendations. $5,000 covers a lot of capex that might come up, but maybe at the start it’s a little lower than his recommendation. I’m at 3 doors and $15,000 in reserves so, for me, I have good peace of mind with this.

Hi @Abigail Veit, also a Raleigh native here :) my advice to you is only applicable if you’re an NC State grad. If you’re a UNC grad you’re not allowed to use it.

Anyway, I think you have a fantastic opportunity in front of you. I think the first and best option would be to buy a property and rent it out, while still living with your parents. If that’s not going to work out, then consider house hacking afterward.

My biggest Investing regret is not taking advantage of house hacking. My wife and I bought a house before starting to invest and that mortgage payment delays getting into the game severely, especially when you’re 22 and high income jobs aren’t available to you.

Good luck to you!

Probably the best option here is to find distressed properties and force the equity into them, where you'll still cash flow at the end. You could do that either by flipping and holding the property (BRRRR), you could acquire an under market multi family and raise the rent, or both.

Once you’ve stabilized you can refinance the property and do it again. You’ll capture the equity you’re looking for and still have your cash flow.

Well done brother! Way to get in the game... on to the next one!

I agree with both the above comments, if you've done your research you shouldn't have to worry about vacancy or you'll know how to budget and prepare for it. Invest in areas that have growing populations or where properties are sold on the MLS quickly (1-2 months). Upon purchase, still have at least 6 months of the mortgage payment in reserves, then budget for 5% of the rent to be set aside every month for vacancy prep. Due diligence and preparation are your ways to overcome the fear.

@Brad Cherry to get back to the original post, yes you can use the HELOC as a down payment . Though I wouldn't advise it.

I'm using a HELOC that I put on an investment property. I love the HELOC option because I only make a payment when I'm using the HELOC and when it's fully paid off, I cash flow like crazy. The reason I wouldn't use my HELOC as he down payment is because then I would be 100% leveraged on an asset and my cash flow would be poor. Instead, I use the HELOC to fund a BRRRR strategy deal and I act as my own lender. Upon the refinance, I pay off the HELOC.

I went through the scenario several times, thinking "should I use the HELOC to get 5 SFH rentals right now, or should I BRRRR." Ultimately, after doing the math, the 5 SFH would have poor cash flow and would take a LONG TIME to pay off the HELOC. Whereas the BRRRR strategy keeps it pretty the time leveraged minimal.

Wow, what an inspiration. So awesome to hear someone around my age doing this. Keep it up and keep us updated!