All Forum Posts by: Boruch Vann
Boruch Vann has started 6 posts and replied 16 times.
Post: CapEx and Vacancies can cover each other?
- Posts 16
- Votes 12
I had a wonderful conversation with Linda Labbe from here on BiggerPockets. She explained how they manage CapEx risk together with vacancy risk to cancel each other out, by selling off the bottom 20% performing properties in their portfolio each year and use the funds to purchase properties with better prospects. By constantly pruning off the bottom performers, they minimize vacancies, and by turning over all their properties every five years, they avoid most major Capital Expenditures. This sounds like a home run, and I'd love to get some feedback from people who have been both successful and unsuccessful with this strategy!
Post: First Rental Investment can be a distance property?
- Posts 16
- Votes 12
Wow, thank you everyone. This thread has been choc full of helpful advice and offers to connect and help! As my first foray into BP forums, I am overwhelmed by all your help, and I will definitely be reaching out to some of you. Looking forward to connecting!
Post: Should I get pre approved before finding a deal
- Posts 16
- Votes 12
Quote from @Angelo Llamas:
Should I get pre approved before I even find a deal or do people usually wait until the deal comes across there desk an then during the offer they do a finance contingency during the offer process
There is no right answer. You may get preapproved and then find a deal which is way more than what you're approved for, and yet so lucrative you will want to find a way to afford it anyways (HML, Private, etc.). I would say, get preaproved for sure, because it will impress the agents and will save so much hassle later. However, don't let the banks' magic approval number limit your search for the right property.
Post: QOTW: If you had an average income, but don't want to househack..
- Posts 16
- Votes 12
Quote from @Tim Ryan:
Quote from @Alicia Marks:
Welcome to our question of the week! This is based of a Facebook discussion about wanting to hear more average income earners accomplishing their real estate goals. If someone wants to get started in becoming a real estate investor, makes around $50k per year and has saved $10k, but doesn't want to househack, what would you recommend they do?
Let's hear those great ideas and life experience!
There are many investment properties they can buy with $10 across the country. My first advice would be to get the investment property now - before buying your own house! I believe the "American Dream" has been homeownership for many decades, but this should change to the American Dream owning Investment Property. I hired on a couple to manage one of my apartments, a 42-unit, in which the lived onsite. They told me they would stay a couple years and then buy a house to live in. I explained to them that should buy investment properties now and later those assets will help them get their own home. They bought two positive cash flow duplexes while living and working at my property part-time while having full-time jobs. Then eventually bought their own house. Backwards? Most would think so, not me. It's smart and doable. Think outside the box, don't follow the crowds. I am way more impressed with someone with multiple rentals and I couldn't care less if they own the house the live in.
I have just arrived at the same conclusion, and begun the soul searching process which has led me to Bradley Turner's books, and in turn to BiggerPockets. I have just agreed to stay on another year in my apartment, and I am now seeking an investment rental property.
You mention rental properties "across the country" for first time investors. How would you recommend a newbie like myself getting over the hurdle of learning about real estate investing for the very first time with a distance property? The distance makes it seem riskier.
Post: First Rental Investment can be a distance property?
- Posts 16
- Votes 12
Thanks for the advice! In other words, choose a region and develop a connection with a management company before choosing a property? Re: video walk through, shouldn't I fly or drive out myself to walk it through before tying up the property?
Post: First Rental Investment can be a distance property?
- Posts 16
- Votes 12
I am seeking my first rental property. I've been scanning for leads in my area for a couple of weeks, but every opportunity I find offers negative cash flow because property values are disproportionately expensive as compared to rents in my area. I don't think I should go for gut-job BRRRR style investments with my low level of experience. I think it makes the most sense for me to look in a different region where rents are higher versus property values. Does anyone have experience starting out your portfolio as an out-of-town owner? What obstacles will I have to overcome? What are the risks?