All Forum Posts by: Andy Daniels

Hey all,

I've been trying to find a decent answer to this question, so I figured I'd post it here!

I am currently working on a live-in flip house, and I plan to sell after my 2 year primary residence mark (est. December 2023). In the meantime, I have access to private money via an investor where I am planning to purchase BRRRR properties and turn them into rentals once they are renovated.

My question is: Can I still execute a cash-out refinance on the property if I purchased & renovated using all cash? I know if you use conventional financing to purchase the property, you can cash-out refinance after 6 months seasoning, and pull out 75% LTV to recoup the money. But what about an all-cash deal? My goal is for the all-in cost to be no more than $75k on each property.

Thanks for helping out a real estate rookie!

Andy

Wow good for you @Sasha Williams! I wish I had that realization when I was 15. 

At this point, I'd say start with the basics. Continue to educate yourself on entrepreneurship and ways to create value for others. When you break it down, business is just people interacting with other people. 

Ask yourself; What skills do I have to bring value to others?

Some literature I'd recommend:

• The Millionaire Fastlane - Mj DeMarco
• The Slight Edge - Jeff Olson
• The Book on Rental Property Investing - Brandon Turner

Best of luck!

-Andy

@Janell Johnson I use it occasionally for my property analysis, but I always follow up with my agent to do accurate comps. 

I use it to make a general determination of what my ARV might be on the property by looking at the prices of similar off-market homes on Zillow. Again, I doubt it's very accurate, but a good starting point.

Cheers!

-Andy

@Gidon Levy this entirely depends on each person individually. Preferences, experience, energy level, appetite for risk etc.

Investing in one specific market is what many people do, and it works great. I also know of investors who have land holdings in 10+ states, and they also do just fine. 

An argument I would make for investing across different states/markets is it spreads out your risk. For example, say you own 5 properties in a city, but 2 major corporations move out of town to relocate elsewhere. Demand drops, renters move out and it becomes more difficult to adapt with all your eggs in that one basket. 

As I'm developing my strategies for investing, I want to go for a diversified approach. This means investing in multiple markets and multiple different unit types. This is MY preference however, this may not work for you. 

As long as you have a solid 'Core Four' in each market (Agent, Lender, Contractor, Property Manager), you can invest anywhere.

Hope this helps! Reach out anytime if you need help.

-Andy

Hey Tyler!

Forum member Dion McNeeley has a great video on Section 8 that goes into detail on all this. 

You can watch that here

Cheers!

-Andy

Congrats on that first property @David Roberson! I am right behind you on getting my first property, haven't closed on one yet, but I will keep pushing ahead. 

Best of luck going forward!

Hi @Erica Das! I am also in the early stages of choosing an out of state RE market to invest. For me, I am looking based on specific criteria:

1. Economic Drivers - I got this from @Dion McNeeley on his YouTube channel (thank you, sir!). These factors include ports/airports, military bases, colleges, hospitals, big business moving in (Amazon, Boeing etc.) I look for at least 2 of these drivers in my target area.
   
2. Population growth - This may seem obvious, but a question I always consider with this; Is this growth reactionary or is it long-term? It's important to find the reasons for the spike in growth. 
   
3. Crime Data - Hop onto CityData and take a look at your potential market. This site is cool because it breaks down the data into zip code/neighborhood specifics. I definitely don't want to manage a property that is high in crime.

I 100% agree with @Remington Lyman on getting your Core 4 team. You should absolutely read David Greene's book on out of state RE Investing. 

Let me know how else I can help you!

-Andy

Hello all! My name is Andy, I currently reside in the Portland, Oregon area! 

My Goals: 

• Closing on my very first rental property purchase before September 1, 2021
• Keep closing on deals and BRRRRing my way to semi-retired by age 35 (7 years away)
• Connect with the awesome members of Bigger Pockets and forge amazing connections!

As most of you have probably seen, the Portland area market is HIGHLY inflated right now. MLS inventory is at record lows, and first-time home buyers like myself don't really stand a snowball's chance in hell here. However!....

I just finished up David Greene's book, Long-Distance Real Estate Investing and it blew my mind! I can literally choose any market I want, and still accomplish my goals in a more efficient area. YES.

That is my current journey. I am zeroing in on potential markets based on my individual financial requirements, and I will be closing on my first property before September 1, 2021. 

Thank you to this forum for providing some amazing education. I will do my best to give back with more knowledge!

Looking forward to connecting with all of you. Let's chat!

Best,

Andy

 I definitely encourage you to read David Greene's book, Long Distance Real Estate Investing. He lays out proven tactics and strategies to efficiently invest in out-of-state markets. 

Your issues with your GC not performing as desired could potentially be smoother by implementing contracts/agreements that are signed and professional. Again, the book goes into great detail on that. I'm still a newbie myself, and searching for my ideal out-of-state market, as I reside in the Portland, OR area, which is outrageously inflated at the moment.

Anyway, all the best my friend!

-Andy

Hey Brian,

I grew up in Salem and have seen the city transform from a moderately boring, sleepy capital city into a bustling cultural center over the last few years. West Salem is experiencing tons of residential growth. I've also seen lots of potential on the outskirts of the downtown area, specifically with older single family homes that have been parceled out. 

I would definitely steer clear of the NE Lancaster area. High crime  and low income there. 

Hope this helps!

-Andy