All Forum Posts by: Corby Goade

Sounds like your current property works fine to me- that's pretty decent cash flow. If you choose to seller finance, you lose all of the tax benefits. 

I'd be looking for a live in BRRRR on a MFH and house hack if I were you.

The world has changed a lot since you bought in 2020 and your strategy probably needs to change too. Those 1% deals are mostly gone and the ones you find will probably be in VERY rough neighborhoods and won't perform the way you hope they will. 

Personally, I'd focus on value add deals and BRRRR, leaning in to the hopes that rates will be down soon. If not, you'll have enough equity to flip, if need be.

Not with any traditional or DSCR lender. It would have to be private money, and if you can find it, the terms will probably be pretty crazy.

Why would you want to take that much equity out? Nice having a little cushion of equity and a bit more cash flow. 

This is where market comprehension is vital- not only understanding a general SOW, but knowing what kind of margins flippers require in your area. Using a formula without knowing what's possible in your market will probably keep you from taking action on opportunities because you might not recognize it. 

That being said- if you have an ARV, subtract your rehab costs and then work in profit for yourself and an end buyer, everything is negotiable.

Better to make less and learn more on your first few deals. 

Do you have a real estate agent? They can coach you through some of this, it doesn't have to be "on market" to work with an agent and you can negotiate their compensation however you want. 

I find lots of buyers will blow deals like this by trying to convince a seller that their house isn't worth what they think it's worth- that's a mistake. Building trust and rapport will go much further.

Structuring and offer that gives the seller what they need, protects your interest and builds in leverage for unforeseen problems is key- it's a bit more of an art than a science. 

Best of luck!

I own a property management company, so you can take my advice with a grain of salt. I think a tool like that might help investors make decisions, but I don't think it will actually help them make money or be more successful. 

I've been doing this for a LONG time- over 25 years. I have many of my own investments, run a business helping other people learn how to invest in my market and we manage those properties for them too.

I started our PM company because- you are right- most PMs are pretty awful, not all, but most. 

What most investors don't realize is that they have no idea what is actually GOOD for them. DOM isn't a good indicator because, in many markets, it might take longer to find a quality tenant who will stay and care for the property over the long term. I could place lots of crappy tenants really quickly, no problem. 

Just like sellers- landlords always think their property is the nicest in the neighborhood becuase they painted it four years ago or mowed the lawn last year. Most new investors want to over price their rentals, causing long vacancies and they think it's the property managers fault, the pictures aren't good enough or they aren't advertising enough or they didn't tell the prospective tenant about the new paint from three years ago. 

The challenge is that many new investors wouldn't know a good property manager if they found one because most of them just want to hear "yes sir," and won't hear meaningful advice or feedback that will help their properties perform over time. 

PMs who screen properly and manage professionally probably DO have longer DOM and turnovers and that's not necessarily a bad thing.

Speed of communication and maintenance turnaround are absolutely vital, but most new investors don't want to approve maintenance items either- they think their PM is trying to rip them off when they need to make repairs, so that's a tough one too.

I know this is a very difficult thing for new investors- finding a quality PM, but trusting a pro is part of the deal too and that's the rub, IMHO. A good PM can save an investor tons of money and headaches, but there has to be some mutual trust there and many times a good PM may pass on newbies because they often require some heavy lifting. 

I'm boring and I think real estate is boring too, but in a good way. 

People have been investing in real estate since the beginning of civilization- there's nothing new out there, although there are some people who have done a great job of marketing old strategies to make them feel new. The same strategies that worked 40 years ago still work now. 

If you are looking for tricks or shortcuts, you'll be disappointed. Taking action and reasonable risk, especially understanding that it's going to be really hard before it gets better, is the only way. 

The strategy is irrelevant, but you can flip or BRRRR or wholesale in any market at any time, deals are always out there, you just have to work and network. Connect with other people in your market doing what you want to do and offer some sort of value.

I'm a HUGE HELOC fan- I think you are in a perfect position to scale using HELOCs. Sounds like your DTI is decent, and worst case scenario, this is a great time to cash out on the back end of a BRRRR with DSCR loans, terms are great right now.

My only other advice- using a HELOC for investments, I only do that with properties where I can force equity to at least 20% on the back end so that I can refi and pay the HELOCs off without any issues. I don't want to plan on having a HELOC balance for the rest of my life.

Congrats on making some good moves- don't stop now!

We have been using Eufy Wifi deadbolts from Amazon and I really like them. Super easy to install and control remotely and you get a notification every time it's locked or unlocked along with who did the locking. 

 I don't think you can do that- if your QI isn't answering your questions, find a new QI. Your broker should be able to connect you with someone who will give you good service.