All Forum Posts by: Tucker Cummings

I own 9 rental houses which cover all of my living expenses. Along the way of acquiring those, I sometimes came across a deal that wasn't for me, so would wholesale it out to a friend or another investor. I'm considering going into real estate full time.

I already have my rentals wrapped up in an LLC, but if I were to start wholesaling more would I wrap that into the same LLC or should I start a separate entity? If I should keep them separate, should that also be an LLC, S-Corp or something else?

 They're all set with you homie, The Fayetteville Investor King. Time I leave the nest spread my wings and show these Texans how it's done.

It’s not so much how long it takes, it’s more how many reps you get in amd how many sellers you get in front of.

Typically, per 250 calls, you’ll have 10-20 legitimate conversations where someone is interested in selling. Out of those 10-20, you might have 1 that is an actual deal.

If you’re not good at salesmanship, it will be more calls. If you’re a great salesman, you might get 1 deal per 100 calls.

I've scaled up from 0 to 9 rentals (all SFR) in about the last 18 months or so. In the past two months, I've had some hard hits with 2 homes needing HVAC repair for a total of $8300. I've budgeted for these so it's no big deal, but this brought on the question of if it would make sense to get home warranties on my properties.

Is this typically recommended by landlords or is the recommendation to keep cash flow strong and budget appropriately?

@Kyle Hilliard @Kyle Hilliard @Kyle Hilliard

No we haven’t closed yet, haven’t even began the search yet. We’re working out job logistics now (even though we have enough cash flow from other property to cover all expenses) before we move. And we have some refinancing with other property coming up that we don’t want to make a major financial change, like moving and job change, that might interfere with getting approved. Realistically the real search will begin probably around November.

I think her seeing how much income we’ve been getting from rental property is what got her onboard. We acquired 9 rental properties in about 18 months and now cover all our expenses with rental property cash flow. So once we played it as “it’ll be a lot easier if we buy a house we can house hack, live there a year, simultaneously scope out other areas of town we would prefer to live, stack cash, then move into our long term house and keep the other as a rental and continue to subsidize our mortgage payment that way.”

Was a no brainer once we looked at it from a logistical standpoint rather than wanting to be in the cute HGTV home right out of the gate. I think the biggest thing is that it prevents us from buying a house in an area we’re unfamiliar with as a our long term home and is end up hating the area we buy in.

I would also opt for the househacking option. My wife and I are in the process of moving to Texas, where we will move into a 2-4 unit. She wasn't for it at first, but once I said we would just do it for a year to get familiar with the area, then move out and buy our long term SFH and rent out the other unit, she was all on board for it.

Househacking can be a very easy way to get into real estate investing and dip your toe in. Good luck!

I did a HELOC on one of my investment properties and loved it. I could hold the property in cash to cash flow well, but have the liquidity to use whenever I need it. If I used it to BRRRR another property, it's like using a credit card and then the cash out refi on house #2 pays off the credit line on the HELOC house and I'm back to great cash flow.

I currently live in Raleigh, NC & invest in Fayetteville, NC. Over 18 months, we were able to acquire 9 rentals through creative financing, BRRRR method and traditional financing. I was able to do this by acquiring properties where the numbers made sense and I could stretch my dollars farther. Obviously one the biggest parts of running numbers is knowing how to comp a property to see what it's worth. Usually that involves seeing what other property sold for in the area that are similar to mine.

My wife and I are preparing to move to Texas, which is a non-disclosure state. Since I can't see what property sold for in Texas, how are people comping these properties to see what their ARV is?

Love the enthusiasm. Definitely start with education through books, podcasts and networking. When I was first getting started, I ran into the "you don't know what you don't know" block where I didn't even know what questions to ask because I knew so little.

Start going to local meet ups (they're all over the place) and tell people you're interested in learning more. Ask them how they got started, what they would do differently if they could go back, and ask for recommendations for property managers, contractors, agents, wholesalers, etc. As you get more into the real estate network, you'll develop a greater knowledge for it, ask better questions, and soon there won't be anything between you and your first deal.

Also, if you're looking for a super easy way to get started on your first deal. Look up househacking - where you buy a house or 2-4 unit building, live in one side and rent out the others. Helps subsidize your house payment (life's biggest expense) so you can accelerate your savings rate and grow your net worth more quickly.

For Starters, think about where you want to go long term. Do you want to scale a lot past 5 properties? If so, you may want to get a property manager so that you can focus on scaling rather than managing.

Also, how much time do you want to devote to your rentals after acquisition? Personally, I have zero interest in buying myself a second job, where I have to turnover, market, evict tenants, learn new management laws, etc. So I hire a property manager to do it all for me. Additionally, because my property manager keeps such a pulse on the market, she usually gets way better rents for my property.

For example, I recently bought a 3/1.5 single family house and Zillow, Propstream, and Rentometer all told me that market rent would be $850-$900. Because she's a rockstar, she managed to get it rented for $1045/month. She makes me so much more money than I would on my own that she pays for own services.