All Forum Posts by: Thomas Farrell

Quote from @Harrisen Hagens:

Hi Thomas—can you help me understand the math here: how buying an investment property in which you will not reside and renting is more cost effective than staying in an house hack investment?

Keep in mind, you don't have to house hack a multi family. You can house hack a single family property by renting out rooms rather than the whole unit.

Hi Harrisen, thank you for your response! Median home price for a SFH in my area is $800k, not to mention what a duplex would cost. Unless I put down the entirety of my capital, I would be basically drowning. In addition, property taxes are a little over $1000 a month. I figured that I use my capital to create active income to grow my buying my power instead of tying it up just to barely make ends meet. That was my thought process on this.

I wanted to get some opinions on renting while investing. I know this seems counterintuitive (as you can house hack among other things), however, as someone who lives in an area with little multifamily properties for sale (mostly duplexes) and very high property values when compared to the rest of the nation, owning a primary house hack will almost always be exponentially more per month than renting. I also feel like this will tie me down to a location that I am not sure I want to stay in.

With the capital I have, I want to use it for more active income and learn to flip houses. I do not think I want to tie up basically all of it to be stuck in a property I barely can afford in a place I'm not sure I want to stay in. I feel like it would make me "stuck."

If anyone has any advice or any alternate thought processes I would love to hear them!

Hi Carsyn!

Most county's and areas have a Real Estate Investors Association and can often be found through Google. I found mine just by googling my area combined with Real Estate Investors Association and just did a little digging from there!

I hope this was helpful in some way. I'm not sure if you're looking for groups past that.

Quote from @River Sava:

Hey Thomas,

BRRRR is still a strong strategy, especially with solid capital. If scaling quickly is your goal, DSCR loans are a great tool for the refi portion since there's no 12 month seasoning requirement like conventional loans, and DTI isn't a factor.

I suggest focusing on building your "Core 4" team—agent, lender (one who can finance both the purchase/rehab and refinance is ideal), contractor, and property manager. Happy to connect if you want to dive deeper!

 River, I would love to dive deeper if you ever have the chance. Is this strategy something I could deploy in a high entry area like New York/Long Island?

Quote from @Pat Lulewicz:

Private lending could be an option if your goal is "cash flow". You obviously don't get the tax benefits of real estate, but if you're just looking for "returns", then lending your money out could be advantageous for your goal.

 I never thought from this perspective. That is something that could make sense in the short term while rates are still high. Thank you for your input.

Quote from @Sofia Komrskova:

Do you absolutely have to live in New York? If you are serious about scaling up a cash flowing portfolio you honestly need to move to a state that has that kind of inventory. Think somewhere in the Midwest or certain markets in the south. If you can't leave NY, I really wouldn't try to do a BRRR from that far away unless you have someone you trust who is local. Look into Connecticut, Rhode Island or smaller markets upstate.

Unfortunately, for the time being, I do need to stay in New York. I have family obligations. I am open to investing basically anywhere, as long as I could make it work. I will be looking into all markets... I am unable to make a concrete decision until April-May anyway. I appreciate the advice!

@Nicholas L. Thank you for your response! I'll look into some markets that are closer..

Do you have any suggestions that may suit my criteria a little more? Maybe something like a buy, rehab, rent, and hold strategy?

Hello all,

I am new real estate investor that has yet to purchase his first property. Due to a very high entry level in my home state (Long Island, New York), I have turned to look at out of state markets, particularly Augusta, Georgia.

I understand the BRRRR method is not all that it used to be in the past years, but given that I have a lot of capital to play with, I figured that I would still be able to find ways to make it applicable.

Does anybody have any suggestions/tips for me? Am I wrong to assume this? Are there better strategies for the capital I will have?

Currently, my number one goal is to scale rapidly. Secondly, a would like to produce a good stream of cash flow to help me scale (as I'm assuming most are looking for).

Thank you all in advance!

Hello All!

I am planning to get into the TN real estate market as my first investment and am looking for some information.

In particular: Areas to steer clear of, property management fees, typical cosmetic rehab costs, etc.

My strategy is to put large down payments on 2 properties (relative to housing prices) to help pay for my living in NY while still gaining appreciation in a growing real estate market. These will be LTRs and I will most definitely be playing the long game with these.

In addition, as rates go down in the future (hopefully) I plan to refinance as most of us do. With this, I would like to implement the BRRR strategy but am having trouble estimating rehab costs.

If anybody could help, or connect me with someone that could, I would greatly appreciate it.

Thank you all and happy hunting.

@Mackay Oakey Definitely LTRs. I'm planning on buying a small multifamily first and foremost so I have a place to live and then will either buy a single family or another multi family depending on what I can find/fits my criteria at the time.