I say Just Go Do Something

[Brenton Kasselder]

I first began studying real estate investing about a year and a half ago at the ripe old age of 22. I trolled Bigger Pockets reading a whole crap load of information and trying to "Figure" out exactly what my first BIG move should be? The problem was the entire time I was renting my aweful $825 a month 2 bed tiny 1 bath house in my little town of Grand Island NE. I just never seemed to have enough money, knowledge, connections, lending ability, experience, too young etc. etc I was acquiring information but failing to actually do anything with it and failing to seek out and develop my "Unfair Advantage" as Brandon Turner so aptly puts it.

Rents are high and vacancies are around 2% where I live. It is absolutely a landlords market with properties going quickly and at a premium. And almost no income properties being sold on MLS. Have to find deals through grapevine.

So I again went the way of Brandon Turner and bought myself a 3,000 sq ft. duplex, 3 Bedrm 2 Baths for $101,500 with closing costs, and a VA Loan. Spending $33,000 to get them up to $1,050/unit up from $550/unit. With an ARV of $200k and $70k in equity.

Question is, when I refinance to pay back the $30k renovation loan do I take out an extra $50k in equity, leaving me with 10% equity but money to flip with a partner, or retain equity and save up/possibly use hard money to flip and use retained equity as collateral on a bigger property, as soon as the deal presents itself.

I am doing this full time with a VA pension as my income. I want to build a massive portfolio of Cash Generating Assets. So what would you do in my shoes??

Build your own dreams, or someone will pay you to build theirs.