All Forum Posts by: Bryan Cress

Scott Trench sent me a IG message today where he pitched his “Portfolio management platform” where I could “earn up to $10k in 14 days with a $3k capital investment.

It is safe to say his IG is compromised. Hope no one falls for this scam and his account is swiftly recovered!

I have two deals in my market that are zoned as single family homes. One has an ADU that the listing specifically states it will have to be rezoned. The other is a upper economy unit that is pictured, but not mentioned in the listing.

Is it likely that these additions are not permitted? Do I have to rezone the duplex? What is a typical cost to rezone, or is it highly local?

Note: small communities/rural communities

@Mindy Jensen thank you! That’s exactly who I was thinking about!

This was covered on a BPmoney episode. Many complexes and cities have caught up to this and do not allow it anymore. 

@Mindy Jensen do you know which episode covered this? 

I would probably cash out refi if the interest rate is high currently. That will likely be a lower rate than a HELOC, but the HELOC is quicker to access. I prefer to let me stock/bond portfolio ride. I know some people intentionally invest into brokerage accounts for say, 5 years, and then cash out and buy properties. If that was not your original intent, I'd find another avenue like the refi or HELOC.

adding to some of the other information:

Don't go in to an investment property with no money in the bank. Things happen and you'll want cash on hand. Assuming the interest rate on debt isn't killing you, it's not a bad option to pay that slowly. If you are a high income earner, don't mess around, just pay it off. If not, then it may take you a while to pay down $10k and the investment property with cashflow could help you speed that process along. 

My main concern is that you are questioning a small debt (relatively) which makes me question if you have enough liquidity to safely enter into an investment property. I like people to have a 6 month personal emergency fund and a 3-6 month RE emergency fund to hedge risk. This might be house hacking territory. that way your personal EF can double as your investment property EF. 

Best of luck! 

** not investment, tax or legal advise. consult a cpa, or licensed investment professional for advise on your specific situation.

1. 6 month emergency fund

2. Roth IRA if under income limit

3. HSA if available

4. Traditional IRA

5. Brokerage account

This question can have multiple answers based on your goals. The ability to draw from you pension at age 50 makes me question if you have a career which would allow you to draw early from your retirement accounts as well (such as a police officer, firefighter, etc.). Do you qualify for that? I believe it's age 51 for IRA/401k without penalty if you fall into this category.

I would want that money invested NOW, not sitting around for the almost 10 years it will take to be able to invest that much into your 457 ($19,500 - $12,000 = $7,500/year---$75,000 profit / $7,500 = 10 years). My natural progression for investment vehicles (excluding real estate) is: Match/Roth/Tax deferred/ Taxable. If you have a Roth 401k, that's a fantastic option and I'd max that out. If you have a HSA, I'd max that as well. 

Lastly, while you said you don't want to be a landlord, that doesn't necessarily mean you couldn't hire management. You could also look into syndications, hard money lending, flipping, etc. Lots of niches that are encompassed by 'Real Estate Investing' that don't require managing tenants.

Best of Luck!

***not tax, investment, or legal advise. This is my personal opinion and what I would do if I were in your shoes.***

@Taylor L. Thanks for the feedback! 

Hey everyone! I have partnered with an experienced investor who said his measure of a good property is a 5 year return. By this he means: the rent collected over 60 months must be greater than the purchase price and initial renovation cost.

Essentially, it's a 20% return. My question is, what rate of return is the equivalent to this as represented in the BP rental calculator? I believe it would be most closely related to the IRR but I'm not positive.

Thanks!

@Mo Weis I’ve noticed that it’s more of a 1% rule than 2%😂 

I did miss that it was going to be interest only, but I did calculate for the 30% down. 

If the interest only is 2050/month, then it’s about 700 Cashflow or $100 / door. That’s a lot better deal. Not sure I like the idea of an interest only loan though. Not building equity unless you refinance and never actually ‘owning’ the property ... maybe a tactic but it’s not for me