All Forum Posts by: William F. Senkowsky

Those are some good numbers. In doing a HELOC it would depend on the institution you go with or who is holding the mortgage on time frame of pulling one out. Just call and ask about timelines. The sooner the better especially if you have something you are already considering getting into. If there isn't any appreciation equity you may have to wait until there is and use the 30k in the meantime then do the OPM when it's available.

I agree to document everything  but I see it more as an opportunity to make a dollar than a headache. If a tenant wants to leave something of any value, I’ll cash in. 

Would be to difficult to start using the 2nd bank account as the primary for the rentals and either close the 1st one or use it for a reserve account? Not sure how many changes you would have to make for this but once they are done you would be set up with an account that your rent goes directly to as well as the same account pay out from. 

Welcome to Bigger Pockets! I thoroughly enjoy this place. So much knowledge and interaction.  Everyone’s friendly and seems to enjoy helping with answers. 

If you own the triplex and it's all rented out, you might consider doing a HELOC to use for another purchase if you can't do a re-fi. But the interest rates would be a key factor of those options as well as getting another mortgage to purchase the next property. Whenever you can use OPM (other peoples money) you save yourself from using what you have in reserve. 30k is a decent amount but you might want to consider other options that could help you keep most or all of that amount. Your goals and strategies will also play a role in which option you choose. It'll come down to what are you willing to move forward with and still sleep at night. The way I look at interest rates are that if I get into a mortgage that is a little high, I will refinance when/if they come back down. If they don't come down then I'll have an interest rate lower than future current market. Also if the rates don't come down then I would look at doing a HELOC which my mortgage rate will still be lower than rest of the market and I can use the money to move forward. Hope that makes sense.

Best and Worst case scenario... I agree with @Loren Polito they could be taking the next step to scale up or there are issues they can't afford and are wanting out while they still can. Due Diligence is key to success. 

I would seek out off market deals by driving for dollars. Make connections with local investors who would be willing to match cash or get into multi family. More doors per location. I know San Antonio market is hot right now but there are other parts of the country like California that are through the roof and have more hurdles than Texas but people are still finding ways to invest and create opportunities. If your not savvy on the construction process or know what poses great issue it would be better to purchase something small that can cash flow to traveling nurses or military until you can network and gain education. I wouldn’t put all the money in one deal. That seems to risky without having a team of people who have some experience in investing. My opinion and I speak from construction experience. I’m not afraid of taking on a torn up house because I can do about everything minus special trades i.e major plumbing, electrical, HVAC. Yes it might take a little longer but I save a lot of money on labor cost. 

That’s a broad question and is going to be specific to you and what your long term goals are… Obviously real estate, but what property type are you interested in, single family-multi family? What strategies are you considering fix/flip, long term rental/ short term rental? What condition of home are you comfortable with? Cosmetic or major repair? With $400k cash there are a lot of possibilities… Personally I would buy as many properties as I could but I also do construction/design work so I am able to save money on contractor expenses. 

Seeking mentorship, reading books on strategies and real estate business, connecting on BP will be crucial for your education. And I agree; house hacking would be a great start for you to learn property management, the tenant process, and help supplement expenses to some degree. Study the market you are targeting. How much houses are selling for, how much rents are going for, develop property types that you want to invest in and learn the pro and cons of those types. Do keep your guard up through your eduction process that you don’t develop analysis paralysis. If a deal comes across your desk that makes sense to your plan/goals jump on it. I’m going much of the same as you and I know that if it’s going to happen it’ll be based off my action steps. 
Knowledge + Action = Experience. 
Experience leads to Success. 
Onward and Upward. 

Great job!! The floors look awesome and love the blue vanity! Would like I see the before pics.. I’m a remodel contractor/craftsman and love to take distressed homes and giving them new life..