All Forum Posts by: Kristel Daugherty

Congrats on your fearlessness!  That's a great trait to have developed!

As far as your question goes, my recommendation is to create some kind of spreadsheet or checklist to determine the BEST of those bright shiny objects.

For example, last fall I got excited about county tax foreclosures. I reviewed the prior year's sales and saw a few properties that were successfully turned into the kinds of investments I wanted to do. Next, I did the research on all of the properties that were on the upcoming tax foreclosure list and ran the numbers. What was the minimum bid, a rough estimate of closing and rehab costs, and the costs for me to run as a BRRRR (capex, taxes, vacancies, etc)? At the end of that analysis, there were clearly leaders as potential investments and others that HAD looked bright and shiny that didn't have that same appeal.

I hope that's helpful and good luck with your investing!!

@Branco Theis - You're welcome and good luck!  Let us know what you find when you make that decision. I love seeing different people's journeys in real estate investing!

Welcome @Charles P. and I hope you have great success!

There's no good way to predict the future - no matter what anyone says.

If you really want your finger on the pulse of what's going on, plug into your local city and county meetings.  Read about legislature going through the state and federal governments.  Donate and be active with the lobbyist groups that support the positions that you favor.

Good luck!

Since your main goal is cash flow, I would look at investing in things that will provide that.  You might want to contact the hard money lenders in your area to see if they would like additional partners.  Maybe research note-buying to build additional capital.  I'm personally a fan of multi-family properties, so maybe look at small apartments or quadplexes in your area.  Connect with wholesalers and GCs in your area to see if you can start a self-sustaining business model?  It all depends on how you'd like that cash flow to look and what level of involvement you'd like to have.

Good luck!!

Why not combine elements of 1 & 2?  Get the multi-family and look for a property with the best cap rate you can find in your area.  Live there until you're ready to refi.

Best case scenario - you live in one unit with cashflow from day one, which you can use to save for the next investment.  Then when you refi, if the property has appreciated you might even have some equity that you can pull for the next investment (depends on market conditions and how long you've been there, of course).

Even worst case scenario, a good multifamily will reduce your housing costs!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $284,000
Cash invested: $90,000

Purchased a duplex for house hacking purposes. Used proceeds from CA real estate appreciation.

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

Househacking! I needed a residence in the area, and this way I'm leveraged to reduce my monthly housing costs.

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

MLS with my agent. I needed a local to assist with relocation.

How did you finance this deal?

Conventional mortgage with down payment

How did you add value to the deal?

Unfinished basement. Updated features and floor planning. Landscaping.

@Peter Wilkins Another option would be to use a property manager just for the placement of the renter and lease renewal.  If it's a relatively easy property to manage, you may not need the property manager during the rest of the year.  A common practice to keep the nickel-and-diming maintenance requests is to have the renter responsible for any repairs under $50.  Hope that's another consideration to make holding on to it and not taking the loss a possibility!

You can also reach out to @Jenny Moore - She hosts a monthly meetup of Real Estate investors in Silverdale.  Come out out to the next one and I'll say hi in person!

Welcome @Matt Juran! Investing is exciting, and we're in a great location to work in!