All Forum Posts by: Amy Kendall

@Jaiden Olsen Thank you for sharing!  I haven't done a seller finance deal yet and one of my goals this year is to do one, so this was very informative for me.  I hope if works out, good work!

@Nick Vought If you sell that property, you might have a hard time getting the cash flow that you have going now in replacing it. I would recommend keeping that property. You can still look into doing the BRRRR, just use other people's money. Find a good enough deal, and you will be able to make it happen if you are determined. I passed on a deal once because I couldn't think how to get it down with the money that I had available to me. I passed it to another investor who got a hard money loan and did what I should have done. It was a good learning experience for me. You can probably keep your property and do another, you just need to find the solution of how to do both. Don't limit yourself.

@Jaden Connor Banks definitely love the stability of a W2 job, but one real estate agent/investor once told, "there is no easier way to fund your investments than with a nice commission check."  That has also proven to be true.  I think what you need is to have a solid plan.  My husband still works his W2 job and we live on his income.  We save all of my income as a real estate agent as well as the cash flow from our properties and use that to reinvest in more real estate.  It works well for us because we don't have to rely on the income of our investments.

What would be your plan to acquire properties?  Flipping and being an agent are really both jobs and are competitive.  Just because you commit to it doesn't mean you will automatically be successful.  You need a good plan.  Make a solid 5 year plan taking both approaches and be honest and realistic with yourself.

Also, how close are you to finishing school?  Maybe you finish school, then take a year and follow your dream of being an agent and investor.  If it doesn't work out as you had hoped, then you always have something to fall back on.  

@Scott May Also have a real estate agent run an analysis on your property to see what comparable properties have recently sold for in your area. That will hopefully give you an idea of what your property could sell for on the MLS, then you will have a starting point for a realistic price point. If the wholesaler's price is close to that value and can close quickly, then give them a shot. But it doesn't sound like you are in a hurry or in any sort of distress with your property, and wholesalers are usually trying to locate motivated sellers willing to sell at a discount.

I would consider what your other options would be.  Can you take that money and invest it in another property or two and make a better return?  If you can't replace it with better cash flowing properties, then I would stick with it.  Have a good plan outlined before you do anything.

Try working something out with the landlord.  I have the same situation with one of my rentals right now.  I have a tenant that has a signed lease until the summer, which I did on purpose because January is not a good month to have a vacancy.   I don't want to hold up my tenant, but I also don't want to be vacant for a few months either.  I told them that I am happy to list the property and if I am able to find a new tenant, then I have no problem letting them out of their lease early.  If your friend can help solve the landlord's problem, then I would hope the landlord would be willing to return the favor.

This is a simple task that any title agency will be able to help you complete.  Just contact a title agency in your area and they will help you through the necessary paperwork.

You can finance a four-plex with a traditional loan and take advantage of the low down payment by living in it.  This is a great strategy.  You do have to say that you, "intend" to live in the property for a year.  But say you intended to live there for a year, but then got a job offer somewhere else or had a good reason that you had to leave, then you should be fine.  I know of an investor that moved every 6 months and was able to secure financing each time; so, the banks themselves didn't seem to mind too much on their own stipulation.  As long as you are in good standing and make your payments on time to the bank, I really don't think you will have any issues.  Good luck!

You want to know that your real estate agent has experience with investment properties.  You could ask them if they have investments of their own.  If so, ask them what they are investing in.   What do they look for in a deal?  Investors that I have worked with from a distance are worried about assembling a team and managing a property from a distance.  A good agent could help you with this process and connect you to other people in the area.  You could ask them about that process.  Those types of questions can help you see what they focus on and whether or not they will align with your own strategies.  You could also have them run a pro forma for you on a property.  Make sure they know how to run the numbers.  See if they include all the necessary expenses like vacancy and cap ex or if they overlook those to make the numbers look better.  

@Patrick Jenkins  It is surprising, my investment area has expensive rent as well.  All of my single family rentals go for between $1450-$1750, which blows my mind as well but that is the market rate around here.  I actually like that range in rent, because I get really good tenants who take good care of the property and pay on time.  Get familiar with the types of rentals in your area and how much they rent for.  I look at websites like renter.com or cozy.com for my area and that will get you a pretty good idea of what you could get for rent on a property you are looking to invest in.  Good luck!