All Forum Posts by: Anthony Arredondo

Tough call on how expensive construction would be.  My electrician friend is going to be in town and could wire the whole place next month.  I can do all the Sheetrock and that kind of stuff.  Plumbing i’d have to contract out.  it’s only 700sqft so not a huge job, and the outside is totally done (new siding, roofing, windows, doors.)  I am hoping it would not be more than the amount of cash I already have though.  

I own a house on a commercial block and I’ve got a license to use it as a boarding house.  What that means is I’ve got bunks inside and a property manager onsite who collects weekly rent from people who are in between places or just happen to like the lifestyle (everyone is friends and parties together, so a lot of people are attracted to it.)  It’s not a bad business model if you can put up with the year long buildout and licensure process; the house pulls about $3k a month instead of $1k.  

Anyway, the guy next door wants to sell me his gutted house.  Awesome, I can buy it, renovate, and double the number of bunks without having to hire someone new, then pull $70k a year out of two SFHs.  

My question: He wants $60k. I've got $30k cash, $10k stocks, could get a HELOC for $70k, and have some friends in cash businesses who could lend me maybe $10 or $20k more.

What is the best way to pay for this? Buy with HELOC money and pay my own cash for renovations? Borrow $10k from a friend and try to pay $50k cash for it?

What do you guys think?

I've got a growing portfolio of rental properties, and I really enjoy it.  I'd like to learn more about how larger property management companies handle acquisition and holdings, but I'm not sure exactly how to do this.  Is there some type of work I could seek out to learn more by doing it?  I've got a good head for numbers and really enjoy finance.  Anyone have any thoughts?  

Okay, you gave me the material I needed to run a search myself :)  If anyone comes across this thread with the same question, here is a good readout I found on the subject:  

https://www.biggerpockets.com/blogs/5976/48052-how-to-run-numbers-for-buy-and-hold-properties

That's a good point.  I've got two properties with long term tenants and frankly this feels like it fits my disposition and approach to business very well.  I'd like to continue accumulating, rehabbing, and holding rental properties.  

I see this phrase incessantly throughout the BP forums.  What formulas do you guys use to determine if a house is a good deal or not?  

Thanks Adam.  I know people don't like questions like this, but do you think it's wise to leverage so hard before potential rate hikes and a possible market correction?  

Also, what do you mean by mortgaging with yourself?  I had planned on paying cash then doing a cash out refi once the rehab is done, but is there an extra step I am leaving out?

I have two properties in Louisiana, but I've just relocated back to my home state of Virginia. I really want to build up a rental portfolio, and I've got about $50K cash, should have a HELOC for ~$80K soon, and also a cash investor who I'm testing the water with. There are a decent amount of distressed properties on Zillow for $50-80K here, which I'm thinking about getting into. Should I just go all in and make a cash purchase, rehab with all my resources, and refi? Or is there a smarter way to do this?

Thanks guys.  So you don't think the method of financing matters?  Doesn't matter if I just get three conventional mortgages or attempt to buy in cash?

Hey guys, someone told me to check out Bigger Pockets when I asked this question elsewhere, so I'll give it a whirl by seeing if anyone here has any opinions about this.  I'm a full time landlord now with three properties, and I've managed to accumulate $100K through short term rentals, long term tenants, and a bit of cryptocurrency on the side.  It's not hard to find a duplex here for $80K.  Does anyone have any thoughts on the best use of this money to step up my real estate game and buy more properties?

I figure buying a house with cash would give me some negotiating power and maybe I could talk them down $5 or $10K.  Then I could cash out refi and buy another.

Alternatively, I could just use it for three downpayments and get three more houses.

Alternatively, I could just hold onto it and see if the market takes a hit in the next year or so, then be glad I waited for the right time to buy.  

Anyone have any thoughts?