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All Forum Posts by: Jacob Brooks

Jacob Brooks has started 3 posts and replied 8 times.

I am considering doing the BRRRR Bootcamp for better knowledge and was looking for some information and recommendations from anyone who might have done it or operate it. To preface, I have read a few books, including the David Greene's and Accelerate your Real Estate from the BP Bookstore. There is plenty of information, with the books being worth their weight in gold. I still just feel as if I don't know enough, and it is because of this reason that I am considering the Bootcamp. However, I don't want to spend money and delay trying to start out for 10 weeks to go through a program that ultimately, does little in helping me develop the knowledge needed to succeed. Does anyone know what these weekly assignments will be like when it states "Turn theory into action with individual assignments." Will these be more of developing the skills with examples or actually helping me with through steps in developing on my own real first deal... if that makes sense? Any information that can be provided would be very helpful. Thank you

Quote from @Sheri Fluellen:

@Jacob Brooks, welcome to BP!! I LOVE that you've already jumped in to REI. I've purchased using VA a couple times (I'm prior AF) and I am cheering you on!!


 Thank you!

Quote from @Doug Spence:

@Jacob Brooks Rather than focus on the total value of the assets you want to have, I would focus on the passive income. Who cares if you have 3.5 million worth of assets, especially if they only cash flow 2k/month! The monthly or annual passive income number that aligns with your long term vision should be the goal!

Also, why start with single family? Just jump straight to the small multi and go up from there. 


 Certainly a better way of viewing it, and in actuality that was how I based my numbers considering the rentals I had considered ideal which is 3-bed, 2-bath around the 200k range with the goal of $200 a property for a conservative estimation of $3500 a month. I would ideally like to adjust this within the year after developing my goals and at least a property or two of experience under my belt, but I thought it seemed like an achievable goal under current circumstances. But I am also looking at the equity of the assets in this market as a major factor considering the amount of population growth we have begun to see. The ability to refinance and put into more quickly expanding my property acquisition is more important to me during these first few years than the annual passive income it will provide right now. But that does start to transition ideally right around my 5 year period. 

I am very open to small multifamilies and have included them in my plan, and if a good deal comes up I will certainly jump on it. But having little experience I don't mind my first 2 or 3 deals being staple deals to learn and improve the processes for future deals. But yes multifamily homes have always been my initial idea, but ultimately my starting funds are for sure enough for a few single-family homes, and if something does come up meeting the requirements I am setting up I will jump on it. 

Quote from @Doug Spence:

@Jacob Brooks Don't let the time crunch of the 1031 drive you to make a bad decision with your next property. It may be worth it to just pay the taxes and take more time to find the best property for your long term goals. 

The VA loan house hack is a great plan, and is a totally separate discussion from the 1031 (since you don't need to put any money down for the VA loan).

What is your long term vision? If you're very clear on your vision and the goals you need to hit to make that vision happen, the type of investments you need to buy will become clearer. 

Good luck and keep us updated!


Thank you! This is exactly the mindset I have taken. Although the VA loan typically doesn't require one, I figured this was an easy way to just save on the taxes while doing a house hack and decreasing the total loan amount, and increasing profits. But I did exactly what you asked and looked at the long-term goal and came up with a moderately aggressive one in my opinion. Looking at average prices in the area for optimal rental properties removing the idea of starting with a quadplex through the VA loan, I want to be at 3.5 million cash-flowing assets in 5 years starting with single family, and widening to 2-4 family properties as I become more established and familiar with costs, time and such. Thoughts?

Quote from @Rick Pozos:

Hey @Jacob Brooks you might want to look into using the VA loan for investment properties, I dont think that you can. ALSO 1031 is for investment properties, not personal homes that you live in. I am sure there is a work around for partial purchase or segregating part of the property. Sounds like you got some personal investigating to do on the IRS website.

I've been working with the financing group and my 1031 specialist from what we all seem to agree on is that as long as it is a multi-home property it satisfies the requirements of both upon making one of the units my primary residency for a year. or the like on the property until I move to the next. That was the initial goal, but further reflection has me looking at other options entirely to increase the timeframe between property acquisitions. So I am taking a step back, laying out a blueprint for my BRRRR strategy, and attempting to create a team (contractor, title company, wholesaler, hard money lender, etc.) you all know the drill. Hopefully, I can have the majority in the works in the next week or so to start progressing, but I am taking the mindset of being okay with losing the tax benefit as long as it allows me to creat a good foundation of processes and people to really get this going.

That is what I am beginning to realize might happen, and brings up an excellent question I just started to think about. That would be, if the time runs out, what happens next? Since you have some experience with this, any information you can give?

Hello! 

I am currently a full time Emergency Department RN after leaving the military with 15 years service. I've been learning about multiple areas of investing for years and always intended to get into rental/real estate but wanted to build up a diversified investment portfolio and feel like my 401k and alternative investments have reached an acceptable point with having an increased income of being an RN for the last 5 years. 

I purchased plot of land 2 years ago and just sold it for decent gains using a 1031 so am now diving all in looking for information and a community of people to help me find my next property, with the goal of using my VA loan on a quadplex to take advantage of that loans multiple benefits and house hack it for a year before continuing for further investments and goals I've set for myself.

I am looking forward to getting to know the community and developing my skills in this new area of investment to see where it takes me. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $170,000
Cash invested: $20,000
Sale price: $215,000

1.5 acres for residential build in upscale closed community with intent to buy/hold for a year to decide on building and selling or selling. Sold as undeveloped.

What made you interested in investing in this type of deal?

The property value in the area was increasing dramatically year over year. Was interested in buying and holding to see if we wanted to build or sell it as the marked cooled.

How did you finance this deal?

Veterans Land Board Loan

Lessons learned? Challenges?

Taxes and fees take a hefty chunk out of profits.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, Shayne Lowery of Phillips & Associates Realty, continuing to work with her on the 1031 turnover of this property