All Forum Posts by: Brandon Williams

@Michael Albaum, thanks fir the feedback! The down payment is the biggest factor in my mind at this time, so I’m glad you mentioned that. My understanding at this point is, the bigger factor with owning the investment is the cash flow, not necessarily the 30 years from now it’ll be paid off. Obviously having it paid off would be awesome too, but the dash I could save by not dumping it into a down payment and closing costs may be beneficial in the long run...

Thanks again for the feedback!

B

I’m coming up on two years in my current house, and will be ready to sell at that time (to avoid capital gains tax). With that, I’m looking to put a good chunk of the profits back into an investment of some sort... open to multi or single family options.

My question is around my primary residence post sale of my current home. So far I’ve bought two houses and used them as slow flips to generate some return. I have heard schools of thought, although not many, on the idea of renting your primary residence with investing in property that you don’t live in.

Does anyone have a take who has experienced this, and can provide some logic around why it may be better or worse to own both your primary residence and of course have a rental portfolio?

Thanks in advance!

Brandon

Thank you gentlemen. I think based on the feedback it makes sense to sell this one at some point and acquire something more ‘renter friendly’.

Sounds like pulling equity at the right time to use in the next purchase may also be a play since I still have a garage apartment at this property that supplements while we live here.

Appreciate the feedback all.

@Theo Hicks, thank you for chiming in. You’re basing the 1% on money I have in it, or current valuation? Purchase price being $210, down payment $42, and about $25 in renovations has me all in for $277k give or take. Valuation now being $300+. Either way simple math puts us around 2.6k like you said to $3k... I just wanted to make sure I was looking at it the same way you guys were describing the 1%.

The small multi families seem like the flavor of the month for sure, and the consensus here.

Does anyone have experience doing those in a new construction build?

Just thinking out loud, but if we’re talking long play here, we aren’t necessarily looking for instant gratification on the equity, but rather the cash flow.

@Allyssa Mccleery, thanks for the insight. What you’re referencing is in essence the ‘brrrr’ method as I understand it?

My only question with that, is with the idea of borrowing against your equity... I guess the logic is that sense you’re in it for the long play, and don’t plan on selling, the equity 30 years out or whatever is the case will dwarf whatever you took out to begin with? Meaning, you aren’t sweating the fact that you’re now paying an extra say $25-$50k on that loan because you’ll make it back up in the long term?

That method definitely sounds like a way to purchase without spending as much of your own cash in the deal of course.

Thank you Mike, I will look more into the syndicating and reach out if I think of specifics. Thanks for the time!

@Mike Acri, thanks for the reply. I’m thinking I could bring in $1,200 for the main house (2 bed 2 bath), and $700 for our detached garage apartment we have. That’s $700 over the mortgage.

I failed to mention we renovated the garage into an apartment we rent out for between $650 and $850.

Do you have any property types you lean towards, and would be inclined to put the $90k back into if we sold? I.e. duplex vs Quad vs SF..

Thanks for the reply

@Jaysen Medhurst

Thanks for the feedback. I wasn’t aware of the 1% rule for rent pricing, so that’s good info. I think the multi family house hacking is a good possible next step as well.

Trying to be strategic with allocating profits...

Thanks again!

On my second home purchase currently. My first home I was able to purchase for $120k plus $30k added to the renovation loan, so all in for $150. Ended up selling 3 years later for $255k.

Took the profits to dump into another renovation project.. this one was a purchase price of $210k with approximately $50k when it’s all said and done in renovation costs. We’re one year later, and Comps are showing up in the low $300k range.

My question is maybe not quite so simple with that much of a foundation, but let’s give it a shot. Do I keep the buy and live in renovation house game going, or begin holding as a rental as a part of the Monopoly game of collecting as many rentals as possible?

With that, is there a better price point or property type for that matter to begin the rental game?

Thanks in advance for the feedback!

Cheers

Brandon