All Forum Posts by: Alexander L Gulledge

 Thanks Jonathan. I'm not in too much of a rush, but want to have a plan / strategy in place for when I'm ready to move. Will likely be mid 2025. I want to continue growing my portfolio and build long term wealth. Both rentals are in a good place for now and my business is cash flowing well. I'm covering the leverage and have reserves in place for any capex expenses. I appreciate your thoughts. I certainly don't want to over reach or put myself in a bad situation. 

@Jaycee - Thanks for your comment and for reaching out. I'll follow up with you on the DM. 

Hi All,

I recently secured my second rental property using a HELOC and now I'm thinking about my next purchase. I've heard of folks using the equity in their rental properties to purchase additional properties and I'm trying to learn if this would make sense for me. My first rental has over 100k equity and the rent is almost double the debt payment (I've got a really great mortgage from 2020 so it cashflows very well). I believe there maybe a few different ways to tap the equity in my 1st rental, but my concern is that if I take out the equity for a new purchase, I'll be reducing the cashflow of my business due to the additional debt repayment. Assuming I'd be able to use the capital on a new purchase and that new purchase would pay for itself and then some, I wouldn't expect it to also cover the debt repayment for the equity loan. I don't want to refi or sell the 1st property since it's doing so well. The second rental is doing well but it will take me some time before the HELOC is repaid and I can use that again. So I'm reaching out here to see what others have done and if leveraging the equity in my first rental would make sense to pursue a 3rd property. As info, I'm focused on long term buy and hold single family. Thanks for your time and I appreciate any feedback or guidance.

Hi All,

So I've learned a lot in my REI journey and met some great folks here on BP. I've got capital and I'm actively looking for a new property to ultimately hold as a long-term rental. I'm a big fan of buy and hold strategy. So, I'd like to get some thoughts on approach...

Initially, I was hoping to find a property I could BRRRR but have found very few properties where the numbers make since. The ones I found; I was outbid on. I'm newer to this so I don't have as much confidence to squeeze the numbers as tight as some other more experienced investors might be able to...

Then I started thinking, perhaps I could acquire a turnkey 2b1b and do an addition to force appreciation and refi on the backend with a larger 3b2b and still effectively BRRRR and have a new rental in my portfolio. This still might work as a strategy, but I haven't found a good candidate property yet (layout and neighborhood have to be right for this to work).

Then I started looking into turnkey properties in desired neighborhoods that I know would make good rentals and support good rental income and have long-term appreciation. The issue here is that with investment rates as they are, I'd have to put more down (25% vs 20%) and then I'd be left with a long road to rebuild or repay that downpayment before I could repeat. 

I know I can do this, and I have the means. I'm just curious how other investors are approaching these types of challenges in the current market and want to get some feedback on what I should be looking for when acquiring new properties. I've been told it's like looking for a needle in a haystack and I'm beginning to see that for myself. I'm just very determined and passionate to make this happen. I want to consistently build my portfolio over the next 10yrs. 

I've been trying to focus on SFH as long-term rentals. I've flirted with the idea of a townhome / condo but don't feel they have the same long-term potential...

Any and all advise welcome! 

Thanks in Advance! 

Thanks for your comment, Preston. I have not yet explored those options and will check them out. For management, I just completed the course for my property management and I'm working through the PMIC material now. Basically, I'm planning to self-manage until my portfolio grows beyond my capability to do so. As for agents, I have two personal friends that are local agents, so I think I might be good to go. What I really feel I'm missing is a mentor who has RE investment experience. Someone I can bounce ideas off of and get guidance from. 

@Patrick Roberts - Great to meet you virtually! I sent you a DM. Would love to hear more about your RE journey! 

Thanks @Will Gaston! I sent you a DM. 

Hi All,

I'm really passionate about building my real estate business and there's a lot I need to learn about. I'm looking for anyone who would be willing to share their advice / experiences and make a friend. I'm about to turn 40, a working professional with a Ph.D. and I make 6 figures. Overall, I think the corporate life is not for me and I will be putting in the work to build my desired financial freedom through real estate. I have 1 rental property now, I've had it for about 3.5 yrs and it's doing very well. I had another but sold it to free up some capital and improve my personal debt position. That's about the extent of my experience with real estate.  -- I'm currently taking a property management course to learn how to self-manage my current property and future properties going forward. I grew up blue collar and my dad was a contractor, so I'm very much a DIY guy and think I can reasonably handle property management. 

Ultimately, my dream is to achieve financial independence and free myself from a 9-5, build generational wealth and allow myself more time with my little ones. I have 2 and they are a huge motivator for me. I have my rental in my LLC, and a basic group of folks I'd consider to be my team as things begin to get real. I know a few agents, a few contractors, and a real estate attorney, but need to build a relationship with a good lender who can do competitive DSCR and rehab loans. Who else do I need on my team? What are the best ways to leverage myself to get the next property and grow my portfolio (i have some options but not sure which is best)? I have so many questions!

Anyways, thank you so much for taking the time to read this, and if you're open to connecting here and having a chat, please reach out or send me a connection request.  I'm in South Carolina. 

Best Regards,

Alex 

I've been in a similar situation with my market (Columbia SC), so I know exactly what you mean! It's the nature of the beast right now. I did recently find something that works (hoping everything goes thru), so I know it's still possible! I'd say be patient and keep your eyes open. You don't want to do a deal just to do a deal. Make sure it makes since, and maybe adjust your expectations on what type of COC return you are looking for. As others have said, you can refi later and improve the cashflow - but don't get into any property that won't at least cover itself (including some profit (10%) for maintenance).

Hi Alaura,

I'd recommend thinking about and framing out your objectives first... Before you go and ask someone to be a part of your team, be really clear on your "Why" and the strategy you want to pursue. This will help better set you up for success. If your strategy is to fix and flip, your team will look different from a buy and hold or STR approach (they could overlap but could be very different as well). First align on the type of RE investing you want to do and be clear on why. Why flipping vs Rentals or whatever it may be. Then, frame out each person you think you'll need on your team (agent, attorney, contractor, cpa, etc... and seek feedback) You're doing great by thinking about your team this early on, and I would encourage you to start meeting people and having conversations. Look for REI meet ups in your area. For me, I don't consider someone part of my "team" until I've known them for some time and understand truly what type of person they are. Don't just go with the first realtor / attorney etc.. that you meet. Try to meet several - word of mouth recommendations from people in your area are probably the best place to start for making solid connections. Remember, focusing on the fundamentals and being very clear on your strategy as you move forward will help you realize the most success. Never stop learning!

 Great feedback! Thanks!