All Forum Posts by: Anthony Dooley

I always use a small local bank for investment property. What you are proposing has been used for decades. It is practically the BRRRR model. Keep in mind, HELOC interest rates are not based on the Fed or 10 year treasury. They are completely controlled by the lender.

I have purchase 3 houses on online auctions. Most of the time the homes get purchased by an owner/occupant for near retail price. There is no need to worry about clouded titles. The closing attorney has researched the deed and they will not transfer ownership to you if the title is clouded. You should always purchase title insurance regardless of an auction or otherwise. If the attorney can't issue a title policy, they will not risk doing the transaction.

The builder knows he can sell that house for a lot more than you have the contract for. They hope you cancel. If you want that specific house, you will have to pay more. The builder's costs of materials and labor have increased dramatically over the past year. If you don't pay more, you will not get this house. It just depends on how bad you want it. If you can go find a similar home in the area for sale, you can buy it, but it will cost more than it did a year ago.

I would call insurance agencies, ask this question, and no matter what their answer, ask them why? Have them explain why or why not. 

So what I am reading on your post is that you have $1M invested in a condo that is earning you 2.5%.  My advice is to sell it and invest in something that will at least earn more than inflation. 

Also check out other podcasts and youtube channels such as Matt Theriault at Epic Real Estate Investing. Get several different viewpoints from other sources. You will find that some things are always true, and some things are not. Your market will be different than others. Know your market.

Your plan sounds great, as long as everything happens the way it should. The tenant always pays, nothing breaks, property taxes don't increase, insurance premiums don't increase, etc. If all that works perfectly, what would the return on your investment be? If you don't know, you should. I will guess it is 4%, but I guarantee it will not be close to 10%. The U.S. stock market has averaged 11% for the last 80 years. 12% over the last 10 years. San Diego is a great flip market, but hardly any cash flow. 

Investing in yourself has the biggest ROI. I recommend a 3 day work shop with people like Matt Theriault. This will cost a few hundred dollars and be well worth it. I have heard of people spending $10,15, up to $30K on real estate programs. I would not recommend this at all. It's just not that complicated to justify spending that kind of money. You would be better off buying a deal and losing $15K. You would learn more by doing it yourself than hoping a seminar will teach you everything. You don't need to know everything to get started. Best wishes on your journey.

He already got $100k from somewhere. He should be able to get another $100k.  I wasn't talking to everybody. 

1. That what savings are for. Besides an emergency fund, savings are actually losing money sitting in the bank. You should probably go get another $100K before investing.

2. I would recommend a market that you know very well. The numbers in Memphis are off the charts, but it's a rough town and you need to know how local people feel about the area you are buying. Find a neighborhood or zip code, learn it well, then buy. Property management and repairs will be the biggest challenge with being out of state, which is why I don't do it. Nobody will look after your stuff as well as you. You should consider moving. Whatever you do in NYC for work, is also done in other states.

3. You may find one listed online, perhaps on FB marketplace or wholesalers. You will likely need to market to landlords who want to retire. Running ads on FB, craigslist, etc. Property managers can point you to these landlords. Also, probate attorneys.