All Forum Posts by: Ben Rhodin

Hey @Jeremy Clarke! You are in a good spot, and the same one as a lot of investors right now. The interest rate hikes have made cash-out refi's less attractive, and more restrictive for investors. This is a situation I run with loads of investors each week, and it comes down to taking an objective look at the property, the three ways we can access that capital (HELOC, REFI, and sell), and what that capital can do for us on the back end. At the end of the day, the answer will be however we can make your cash go the furthest, and generate the highest return.

Personally, I am a fan of pulling a HELOC on all my primaries before I move out, as that is how you get the best rates and terms. The money is there, and available but you don't pay unless you utilize it. VS a cashout where you'll always pay for it even if you don't use it. However, HELOCs will be more expensive in the long term, and that is why I don't typically recommend them for a downpayment unless you strategize to pay it off quicker. It is also important to figure out the purchase side first, and see how the HELOC will effect your qualifications.

Happy to chat about it further!

Hey @Dejan Rajkovic! The guys before me already hit most of the aspects of Mobile homes, they are definitely an asset class and I do know people that started out either flipping or renting these types of properties. There are simply other aspects and issues that don't make them as attractive as an asset class, mostly the depreciation aspect. If you can, definitely get into an SFR or even a condo/townhome for your first deal, and especially think about house hacking it, that will be the easiest and least risky entry point. Happy to connect and discuss this further!

Hey @Danielle Durand! Welcome to the BP Community and hope you are excited about your REI journey! I would definitely find local meetups in your area, and start surrounding yourself with like-minded people, that is the best way to get over the first hump. Secondly, definitely spend time reading and listening to as much information as you can, as that will get you a baseline of information. There are a ton of resources within BP alone. Lastly, if you are serious, I would reach out to a local Real Estate agent that is an investor themselves and will support your journey. They will be able to get you connected to a mortgage lender to find out your situation and what you'll be able to afford. That will be the first action step to get you into your first property, which I would definitely recommend a house hack!

Feel free to reach out, and I am happy to connect you to a great agent in your area, as well as help you out with any questions :)

Hey @Derek Howe! Great information in here already, and Dan definitely hit the arguments for the keep/sell aspect of the question. However, in my opinion, what we are speaking of currently is not a financial or defensive question, it is a decision based solely on emotions. Which choice would make you feel more comfortable with what you believe the future holds? The duplex is hopefully currently cash-flowing, and will most likely continue to do so, even if we hit a blip in the market. Selling it and putting it into your primary, will mean that you are losing cash flow and appreciation of that asset, but you are saving money by not having a housing payment. But it's probably not a stronger return than what your duplex is getting you today. So it will come down to if you feel more stable and secure knowing you have no housing payment for yourself, and that if S**** hits the fan you'll still be able to keep a roof over your head. 

Personally, I wouldn't pursue selling that property unless you find a better deal elsewhere.

 Hey Josh! House Hack opportunities are available all the time here in the metro area. House Hacks are analyzed slightly differently and provide so many other benefits that it's not all about the cash flow on day one that you are concerned with. Ill shoot you a DM and we can discuss it some more! 

Hey @Jessica Ewanic! Definitely already a lot of good advice in here, and congrats on moving to our neck of the woods. Denver is a perfect place to start your investment journey and in my opinion an amazing Hybrid city. 

Your questions have already been answered, but in short, I would say don't overcomplicate it, and don't reinvent the wheel. Don't get your license just to assist in your investments, as in the end unless you go all out on it it could end up hurting you, as you won't be the best person to represent you and negotiate on your behalf as a brand new agent. As for building the team, just find a great investor agent in the area, and they will do the rest. They will have the lender, the contractors, and everything else you need. It is very important to find an agent that you vibe with and that has your best interests at heart. 

Moving to a new city I would definitely jump into a house hack ASAP, and get your feet wet that way. A) it will get you into an investment with 3-5% down, and B) it will lower your monthly expenses and give you the time freedom to pursue other investments.

Hey @Josh Humbert! Lots of good advice in here already, and I would definitely echo the sentiment that a perfect BRRRR is very difficult to come by, and is one of those unicorns in REI that everyone seeks out. BRRRR does not necessarily mean that you pull all your money out, but people have come to understand it that way and if your deal doesn't do that then you think it's a bad deal, that's not the case. Look at the big picture and the deal as an investment. 10 years from now you won't be worried that you left 20k in the deal, you'll be saying "Wow, I bought that house with only 20k invested". This is especially true here in the Denver market, where properties are expensive, rehabs are expensive, and lending is expensive, I have to work with investors every day and educate them on the market they are working in, and at the end of the day, if you end up with only 20k invested in the deal, that is a lot better than the $100k+ that you would have had to put down for a traditional purchase.

As for your analysis paralysis, maybe instead of jumping into a BRRRR for your first deal (Im assuming it's your first deal), which has so many moving pieces and items that you have to address, maybe start with something more simple for your first one just to get your feet wet and then grow to the BRRRR. Start with a house hack here in Denver, where you can get in with 3-5% down, rent out a portion of the home, and lower your living expenses. Maybe buy something with some rehab needed but not a full rehab, and get to understand how it is working with contractors on your own property. This will give you the training wheels to understand how to manage and operate an investment property, with very low risk. At the end of the day, there is no replacement for actually jumping in, but the fewer variables and the lower risk you can have, the more likely you are to act on it, and the better off you'll be.

 Definitely, I'm more than happy to connect you. Let me shoot you a DM.

 In short, you would take over the payments on the  current mortgage on the property you are buying. It can also be called "Subject to". and if you are selling the property as an investment, definitely think about 1031ing it as to avoid the capital gains taxes.

Not sure what you are getting at with the duplex, if you are meaning in regards to Airbnb or Short term rentals, you would just need to be in a location that allows Non-Owner occupied STRs, or an area that does recognize the two units as a single residency. I would work on getting clear on your goals as far as an investment, as there are numerous ways to look at a "good deal". Sounds like you are looking for cash flow over everything, instead of COC return, appreciation, or even overall ROI. So I would get clear on what a deal looks like to you, and then go find the location and asset type that can achieve it. Work backward towards your goal.