All Forum Posts by: Brandon Rush

Wowsers. Well you did what you had to do. If anything, all you can do is learn from this experience and try not to let it happen again. Eventually what goes around comes around so its only a matter of time for them. 

Much of it comes down to the investor's strategy. A house that is too expensive to BRRRR is relative. Is it too expensive because its outside of your budget or because there is no meat left on the bone after the deal? You better believe homes in good school districts will be a bit pricey and more competitive as you are competing with other investors and families who want to live there.

The numbers may make more sense in a B and C neighborhood and you may have more opportunity there. Also, there is nothing wrong with investing in B and C neighborhoods, its all about the strategy you choose. Give @Robi Schreckhise a shout since it looks like he is a local broker. He can probably give you a better idea of what kinds of returns you are to expect in your area. 

Hey Hayley, 

Very interesting post. Unless you are 100% transparent with your brother and you are open about each other's weaknesses and strengths I would not do it. If for any reason either of you cannot uphold your end of the bargain, will the other side be ok with it? Also, considering this is his first investment, who knows how he will react to it. He may hate it and want out right away. He may also love it and want to invest more. 

Also, why is he unable to house hack on his own? Why can't he do it, lack of W2 employment, bad credit or etc? If he is only a year or two away from obtaining a house hack, then let him wait it out and invest when he can. 

Last option I can think of is you both forming and LLC together. You would need an attorney to make sure everything agreed upon is official. This may present a nice balance of him living as if he were house hacking by limiting some his housing expenses while you may see some benefits such as rental income, loan paydown, and appreciation.

I have a younger brother who I would love to get into real estate but would never invest with him as we have two completely different mindsets. In the end its all business and your money. Just because someone is family does not mean it makes it a better option.

Not sure if that helped or made it more complicated but wising you and your brother the best.

Good luck!

Hey Frederic,

I think it all depends on your short/long term goals. If you are planning to retire in 8 years, why not hold it and reap the benefits of a paid off property? On the flip side, if you plan to continue investing into your retirement, then refinancing may make more sense. 

Having a few completely paid off properties will be pretty nice during retirement. Very low risk and good income. Think about all of your expenses while retired. Will the paid off property or refinanced property better serve your needs and wants?

That is my 2 cents. Good luck my friend!

Manuel, I envy you. 16 year old! You are the man. My suggestion would be to start surrounding yourself by those who are already doing it vs those who have done nothing and give bad advice. If you truly want to get into real estate, maybe take a job that is real estate related such as becoming a general contractor or realtor to become fully exposed to it. Not sure what the age requirements as you may have to wait until 18 years old for some of this stuff. But, that is no excuse. Start volunteering your time if that's what you need to do to get into the game. 

I would also encourage you to start thinking of your personal finances and how you will manage them. Many people go into their twenties and blow a bunch of money that could have put them in a much better position in their 30's. Another book I would read is "Set For Life" by Scott Trench. 
If you ever have any questions feel free to reach out to me, I mean it.

Good luck and enjoy the ride!

Tre! I would recommend reading David Greene's book "Long-Distance Real Estate Investing" and then maybe come back with more specific answers. Heck after reading the book you may not have any questions and get right to it. 

You got this my friend. I am looking to do the same in the near future.

Good luck and enjoy the ride.

Caleb! Welcome to BP. You sound like you have a good head on your shoulders. Regarding that 5% down payment, I would suggest you jump into a house hack. Its a good way to start as you will be lowering your personal finances, obtaining an investment property and learning how to manage a property and tenants. Many people over look that 5% down (assuming conventional) first time home buyer purchase and jump right into a single family home. Going with the house hack does not stop you from BRRRRing a property, heck if anything you would be picking up two properties in your first year.

Once you get the ball rolling, nothing will stop you but you. 

Good luck and reach out if you have any questions. Enjoy the ride.

Hey Pat,

If you are going to owner occupy, you will probably be looking at, at least 15% down, most likely 20% down for a conventional loan on a multi family. You may be able to find a lender offering 10% down but its going to be tough, but definitely possible. You may have to call around to a few local banks to see what they can offer. Neve settle for what one bank tells you is possible.

If you move out of your current residence which has an FHA mortgage, you will be able to keep the FHA loan on it whether you continued living there or not. But, you will not be able to finance another property via FHA as you are only allowed to have one FHA loan at a time. If you have a "girlfriend" who you are not married to, you could potentially have them purchase a home in their name under a FHA loan. It gets a little sketchy doing that but many do.

Hey Jay, 

I am down with a chat. I just went through this before picking up my first house hack/investment property earlier this month. Being a newbie, there were so many shiny objects, it was tough to make a decision. In addition, I was looking for that homerun deal, which you will most likely not find on the MLS.

If you are interested in chatting, just message me and I will set something up.

Congrats David, this is a beautiful property. Are there any residential multi family (3-4 units) towns in Milwaukee you would recommend?