All Forum Posts by: Adam Roll

Hey BP!

Switching careers and taking over a profitable property management company. Tons of room to improve and expand the business so I am almost certain it will be profitable for the foreseeable future.

My main question is below:

Would lenders rather see me pay myself as a W-2 employee or should I just pay myself out via quarterly shares, etc? Which one do most lenders let me use inside of 2 years of work history in this career change?

I realize for tax purposes there is multiple different ways to go about it, but I am specifically focused on getting loans in the next couple of years to build my rental property portfolio!

Any advice would be much appreciated!!

@Nick Ruffini There is a million reasons people do it but I think, from what I have been reading, is people use that money to expand their portfolio. Taking your own money out and buying another property while maintaining equity in the property you cashed out on. I think overall the numbers have to make sense (and they often do) eg. your mortgage was $1000 before but now it’s $1400 after the Re-Fi, but you are still renting it out for more than $1400, and now you have a second propery bringing in cash now as well. I’m following this thread as I am still learning myself! And I could be way off on my logic so I’ll let the experts answer haha!

@Alpesh Parmar Thanks for the info!

Currently live in Los Angeles working as a restaurantuer. We are using a property management company that  my girlfriends mom (an agent in that area) has had clients work with in several occasions and highly recommend!

Hey Todd,

Thanks for the quick response and the info. What you said totally makes sense.

Do people usually use the cash out refinance option to get the cash to actually put towards the next property as down payment?

Getting a loan with the extra rental income seems very feasible, but saving up enough cash quick enough to put as a down payment would be our main obstacle (usually everyone’s issue). 

Ramen noodles for the next 6 months it is!!

Hello BP community.

Been following the forums and listening to the show for quite some time. Finally made the jump and just bought our first vacation rental.

My longtime girlfriend and I emptied out the account and put 60k down on an amazing 300k vacation rental near Bass Lake and Yosemite National Park.

By conservative estimates, it should cash flow over $1,000 a month after ALL expenses.

As I am still learning on the fly here, I am most interested in the next steps in acquiring the next property (and the next, and the next).

The house should appreciate some throughout the year, and it is nearly turnkey as it was wonderfully taken care of by a family for 40 years, so we won't be adding too much value with remodeling.

My main question to the BP community is "What's the best options to finance our next purchase of a rental property?".

Should we take the cash flow, pay down the mortgage and build equity, then take out a home equity loan or a cash out Re-Fi?

Or do we save the cash flow, and use that money to work towards the next purchase?

I genuinely appreciate everyone's help, and look forward to communicating with a lot of you in the near future.