All Forum Posts by: Tiffany Smith

@John Morgan I agree! Come up with the money buy it outright and then refi. I am actually in the middle of a renovation now that I plan to use this strategy on. Already used it once on an existing property that had been paid down. It definitely works if done right!

@Scott Trench The Kansas City area is good! Real estate is affordable and I haven’t had trouble keeping our rentals occupied.

@Don Scott is it possible to use private money for a portion of the down payment on a property you are financing with a bank or do you usually use private money to purchase and then refi once repairs are done?

@Don Scott this sounds like such a great way to finance deals and I am currently doing this with money borrowed from a family member. Outside of family, how did you find investors? If you don’t mind me asking!

@Blake Edwards I still invest 10% and I have a company match. We only have a few rentals currently but we are looking into multi family/ apartment complexes in the near future. I plan to always contribute but considering dropping the amount I invest in the 401k and using that for investment property. I like the control and tangible asset side of real estate vs a 401k.

@Thomas Dunleavy yes I believe 25% is accurate based on what I have seen.  You should check out crushing it in Apartments and commercial real estate, it gave me a lot of ideas about funding deals.  If you don’t have 25% you could partner with someone or see if the seller will finance part of the down payment.  There are many ways to fund deals, you just need to be creative and think outside the box!

@Matt McConkey thanks Matt! The more feedback I get the more I consider trying to sell the property we are renovating. Originally we were going to rent but maybe I should sell.. I am concerned about capital gains but I think if I reinvest within a certain time frame I can avoid paying. Also the repairs and renovating I did were with the intention of renting not selling.. Decisions Decisions!

Thanks for the advice on the 2-4 family. I am hoping something will be available in my area when I am ready!

@Cory Carlson and thanks for all of this information. It is helpful to get other perspectives!

@Cory Carlson you make some good points! I have considered selling but based on comps that I have seen I don’t think I could make much money. I should do a more thorough analysis though. On top of this I would have to pay capital gains unless I was able to sell and reinvest relatively quickly. Another thing I like about the homes we have is while they don’t cash flow as well as an apartment complex, we have long term renters paying down the debt and increasing our equity. In theory, we could have one or all of these properties pay for themselves and other investments if we continue using refis but this takes a long time. All in all if I knew I could make enough money I would sell, I just don’t think it would be worth it right now.

@Cory Carlson I haven’t really considered selling any of the single family homes. That is definitely something I should consider, however we just refinanced one and pulled equity out. We just bought our third at below market price and are almost done renovating. The plan was to refinance it and use the equity to reinvest aka the brrr strategy. The only downfall is the more you pull out the less monthly cash flow you have which is what led me to multi family. I kind of wish I would have invested in a multi family instead but I have learned a lot so I can’t complain.

All of that to say, I don’t know that selling is the way to go at this time but it’s definitely something to consider. We do have one that doesn’t really perform as well as we would like. So much to think about, thanks for the response!