All Forum Posts by: Yusef Griffin

Investment Info:

Single-family residence buy & hold investment.

My first rental property, it is an out of state turnkey property. I live in California but this property is in North Little Rock, AR. I used this purchase to get my feet wet and as a confidence builder. Plan on buying MFHs from here on out.

What made you interested in investing in this type of deal?

I was new and didn't really know much. My local REIA group had a team in place already and were willing to guide me through the process of buying my first property. They look the time to answer all of my questions and go over things when I was confused. Starting with a SFH seemed like the easiest way to get started, but now I know that all transactions require the same steps (for the most part), even though the number of units may be different.

How did you find this deal and how did you negotiate it?

My local REIA group works with turnkey providers throughout the country. I was given the opportunity to purchase one of the properties they were offering and jumped on it.

How did you finance this deal?

I used a conventional 30 year mortgage with a 20% down payment.

Lessons learned? Challenges?

I can definitely go out and find deals on my own after the hours of self-education I put in after signing the purchase agreement. I learned that MFHs are definitely the better route in my opinion. I know that real estate is not as difficult as people think it is, as long as you educate yourself and put in the work to understand what you are doing. There were no major difficulties with this property being that it was turnkey.

I would recommend MFH due to the greater earning potential long term (greater cash flow, better tax benefits, more equity depending on the value of the property, etc). I am a new real estate investor myself! I am moving to Tallahassee around july/august 2019. So if you decide to conduct business in that area I would definitely like to know how that goes!

I'm a new investor and still super green, but here is my advice. Since the rental market is strong and your interest rate is phenomenal, I would keep renting out the unit as long as it cash flows. I love the buy and hold strategy because in 10 years when the loan is paid off, you will have more cash coming in each month. You can take advantage of the tax benefits from the interest rate and depreciation in the mean time. Since you have 70k in equity, you could take out a HELOC, if all of the numbers work in your favor and use that cash to reinvest in your local area. When the loan is paid off, the price of your property should be higher, which means more money you can take out with the HELOC.

@Basit Siddiqi That makes sense. I don't pay California taxes because I am active duty military and my home of residence is Florida, so I don't pay any state taxes :) But I will definitely start looking for a competent real estate savvy CPA. I may slide in your inbox also.

@Basit Siddiqi I appreciate the information. Do you recommend having a CPA in my current state, or will having a competent CPA be good enough? 

@Dmitriy Fomichenko Thank you for reaching out! I'm on podcast 78 right now, I've been addicted to them lol!!

I literally just finished "Set For Life" two days ago. That book reaffirmed my thought process and steps I have already taken to get me to where I want to be in life, that means I'm doing something right! I am going to buy the other book soon. Thanks for reaching out!

@Brandon L. Thank You! I will take a look at those now.

@Hadar Orkibi Will do!

@Tim Hall I've seen the things you are doing out there. That was already my plan haha. I appreciate you reaching out!