All Forum Posts by: Anderson S.

I've had no luck on FB, but you can use property sites like PropStream (expensive) or PropWire (free)

Not that it's a bad idea, but the barrier of entry is much higher than other areas.

Most lenders are not going to give money on a personal home

First off, kudos on stumbling into your first rental property - that's how many investors get their start! As others have noted you could leverage your VA privileges to give you the best chance to purchase a property with low funds outright. Now, let's break down your options:

Cash-out refinance: This could be a solid strategy to unlock the equity you've built. The $40,000 you'd get could definitely open up some opportunities. However, the increased interest rate is a significant consideration.

Breaking even on the Farmington condo: While not ideal, remember that you're still building equity as the tenants pay down your mortgage. Plus, if the area continues to appreciate, you're winning in the long run.

Using the funds:

Improving your current condo to rent it out is smart. It could increase your rental income potential.

House hacking with a VA loan is an excellent way to get into another property with minimal upfront costs.

Partnering on a multi-family could be a great step into larger investments.

Here's our take: If you're committed to expanding your real estate portfolio, this could be a solid move. Yes, your cash flow on the Farmington property will take a hit, but you're leveraging that equity to potentially acquire two more properties. That's significant growth.

However, consider these points:

Make sure you have reserves for unexpected repairs or vacancies across all properties - THIS IS KEY

Run the numbers carefully on the potential house hack and multi-family to ensure they make financial sense.

Consider the long-term strategy: Will the potential appreciation and equity build-up in the new properties outweigh the increased costs on the Farmington condo?

If the numbers work out and you're comfortable with the risk, this could be a powerful way to scale your portfolio. Just make sure you're not stretching yourself too thin.

Remember, at Brooklyn Funding Group, we specialize in creative financing solutions for investors like yourself. If you want to explore other options that might help you achieve your goals without significantly increasing the rate on your Farmington property, we'd be happy to discuss some alternatives.

Real estate investing is about calculated risks. If you've done your due diligence and the potential rewards outweigh the risks, it might be worth taking the leap. Good luck with your decision!

Check out the website Propwire, it's free to use and can help you find the properties you're interested in Iowa! 

The top 3 cities I recommend investing in are Philadelphia PA, Waterbury CT, Binghamton NY. Philly and Waterbury have very low purchase prices with high resale values if an investor is looking to put in the proper work. Binghamton also has a low purchase price but it is a good area that we see a lot of rental income. This is because the properties are cheap enough that landlords cash flow immediately, and they also get to enjoy the perks of having the college students around. 

This might be taken with a grain of salt since we are a lender, but leverage your cash into a loan that can help to increase your cash. The top 3 cities I recommend investing in are Philadelphia PA, Waterbury CT, Binghamton NY. Philly and Waterbury have very low purchase prices with high resale values if an investor is looking to put in the proper work. Binghamton also has a low purchase price but it is a good area that we see a lot of rental income. This is because the properties are cheap enough that landlords cash flow immediately, and they also get to enjoy the perks of having the college students around. Let's talk some more there's a lot we can help you with to narrow in on your next steps.

Whichever location you want to purchase go visit for some time. Drive around, get a sense of the area. Talk to folks there, understand what's happening or will happen in a few years (for example if a new hospital will be getting built that's a good time to purchase a home in the area). Then there are a ton of location based forums here that can help provide you with additional context. Good luck!

ALL OF THIS!

BP is an incredible resource - your question has probably already been asked. As an investor you need a very different mentality from a retail purchaser. Start there!

Use a site like Propwire to find an off market home in your targetted area, if you feel inexperienced about the renovation talk to friends, coworkers, to find contractors that are trustworthy (key part) to partner with to make the fixes needed. Start small and build from there!