All Forum Posts by: Bryan Beal

@Nick Rutkowski as far as I’m concerned, the larger, over-inflated markets (i.e. LA, SF) will be hit most by a recession or correction. The small to mid-size markets won’t be affected much.

@David Lust man, I think that’s great! Did you it this place for just cash flow or did you buy it because it has appreciation potential?

@Daniel Iles thanks for the input, greatly appreciated! I probably should have mentioned in my original post that I’m buying class A properties averaging around ~$225K - I don’t think buying at that number and that class of asset this is a fair benchmark. If you’re buying homes for $30/$40K per, that’s another story. I guess, like most things, it’s a matter of context.

@Josue Vargas that’s EXACTLY where I’m at. Appreciate the input!

@Bryan Richardson well that makes a lot of sense at that price point. I’m buying in the $200-$250 range so it’s tough to get to that 1%. Maybe it’s just tough in general to get to that number after you got that $150 range...

@Earl McFarland thank you. That’s where I’m at - these markets I’m in have a solid long term potential while cash flowing well enough for now. Appreciate the input!

@Bryan Richardson what is your price point on SFRs to get 1.5-2%? What markets?

I know we're all read about the 1% when it comes to real estate investing.  For those who don't know what it means, it goes like this -

• A property that costs $100,000 should rent for at least $1,000 per month
• A property that costs $200,000 should rent for at least $2,000 per month
• A property that costs $300,000 should rent for at least $3,000 per month

So on and so forth.  

The markets I'm in (and feel like I'm successful in), these numbers are very difficult to attain - specifically when you get about $150,000 purchase price. Granted, I focus in the SFR territory so I'm sure it's more attainable in multi-unit deals but I seem to settle more in the 0.7-0.8% realm. Is this more of a rule of thumb for multi-unit deals? Should this also apply to SFRs? Any input would be greatly appreciated!

I've been doing a lot of research and the idea of pulling equity from an existing home investment (in the way of a HELOC, home equity loan or a cash-out refi) is intriguing to me. Right now I have quite a bit of equity in my primary residence as well as some other investment properties. I completely see the benefit in putting that money to work for you as opposed to sitting idle in the asset however I also see the risks associated with this idea. What I'm hoping is to gain some insight into the positives and negatives of going down this path - to hear some real life good experiences and some real life bad experiences with this. Should I take money out of an investment property of my primary? I'm also hoping to hear what the BP community thinks is the best outlet to do so - HELOC / Home Equity Loan / Cash-out Refi. Thanks for the help and guidance as always!

I'm looking for a PM that would service the Laurens, SC area.  Any referrals would be greatly appreciated!