All Forum Posts by: Brendan F. Nagle

Using your Math, 5k a month consistent. 60k a year to invest.

Buy 3 SFH rentals a year. 100k value with 20% down, Either fix and flip or fix and rent, use any profits to fix or pay down the next one. At the end of a 5 year period. You would have 15ish SFH, assume rented for now. 150 cf per house avg after expenses. Your numbers are now with no appreciation or loan paydown added. 1.5 million in rental value with 300k equity. 2000-2250 a month in CF. Compared to 325-400k stock portfolio value. Add in any appreciation, flip profit, and loan pay down as guesses but that may be difficult to predict.

I have had good luck investing in rural IA. Rent to Value ratios meet my needs, Property management can be difficult but most things are a phone call away. Taxes tend to be lower, but appreciation is very limited.

Positives- conservative numbers for vacancy, prop mgt. and repairs. If FHA you will have to live in the home for a defined time. Less rental income at that time. You can use BP calc to figure out costs during the holding period. Positive cashflow and conservative expenses should keep you profitable.

Cons- You will be 10k+ in the hole with your 20k repairs for only 10K in value. That could be a deal breaker for me with limited top end value. Maybe it can be figured out, maybe not.

My thoughts- Save some money to do 20% down, get rid of PMI. Double check the Rehab budget to make sure you won't over pay or over rehab. See how the numbers work for you then. Should be nice CF with limited capital in it.

@Cody Hilke 

I have a SFH with a mother in law suite, and a new remodeled basement in St. Paul. Should be within your range depending on what year you move. Its now a 4 bd 3ba with a 5th bd if you removed the kitchenette upstairs. Depending on how much of the house you would need, you can put a big dent in the mortgage. PM me for details, but my situation isn't unique. There are many houses in MN cities and suburbs that could be the house hack you are looking for. Several agents @Kurt Pauley @Justin Moorhead that would help you find the right spot. Plus with a SFH finding a lender- Community, Credit Union, or big Bank should have options. Good luck with your journey.

I am thinking about adding storage to a 6 plex I bought. The questions that have come up so far are will the costs add enough value to the property, will the units CF enough to make sense, and while I like the idea of adding a new revenue stream, will this cause resentment or lower value of the 6 plex.

Have your ducks in a row. My HELOC I will finish this month, had me going back to get info and contact info about my properties, mortgages and leases for rental income. Debt to Income may become an issue. Not all banks count rental income the same, or will allow you to take higher percentage of equity out for a refinance. Good luck on your journey.

@Carson Smith

Pass. Too tight on cash flow before and after. One 1200 mistake will make it negative. Rework the numbers till you have 150 cf minimum. then make sure you are confident you can brrrr our after. Appraisal can come in low, with short holding time.

@Christopher Wasowicz

Based only on the info in your post. Purchase small sfr or duplex in a small town. Pay 20-25% down and pay for rehab. Brrrr it once rented out and refinance as much as you can out. Your first deal will cash flow while keeping your money in your account. And ready for the next deal. Good luck with your real estate journey.

A sale of your rental in CA will trigger capital gains taxes. So a 1031 exchange to another Real Estate deal may be the way to go. A sale nets you the most cash to play with for your goals. A Refi or heloc interest rate will be determined by How much equity you pull out. Anything above 80% would be higher rates. IMO a sale makes the most sense. 450k as a down pmt on _____ (insert Real Estate) could be a lot of profitable doors.

I am a fan of North Iowa and Southern MN. Rural areas tend to have lower barriers to entry as well as lower asking price. IMO its more of a cash flow play over appreciation. 150k using the BRRRR strategy should produce at least 3 cash flowing rentals a year. Pay cash, hopefully light rehab, rent out 1% rule+, then find local bank/credit union to finish the refinance. The best outcome being <80% LTV on each rental and at the end have as little of your equity as possible. Of course no guarantee that any part would work perfectly. Good luck in your journey.