All Forum Posts by: Clark Kirkpatrick

This seems good to me - are you sure that you can get 90% loan to value on the HELOC?

This could work as a classic BRRRR, where you refi and pull out cash that way. If you did that, you'd pay no interest on the cash you pulled out.

You could partner with someone (you're the deal provider, they're the cash provider). You could get a private money loan or a hard money loan. You could work with someone else on one of their deals to get some experience and build up some rapport with local investors who might be willing to work with you on a deal.

I go through a local guy that has a company comparing prices with a lot of different insurance providers. He puts in his criteria and it spits out quotes. I go for the lowest quote, and the insurance company gives him a kickback for referring me. Sort of like an insurance broker. Unfortunately I don't have a guy in Texas for that, but I bet somebody does!

This looks like it'd do better as a flip than as a rental? $7500/month negative cashflow will bleed you dry!

I'd cap them for now and then wait. You can always replace windows later if they leak or otherwise cause problems, but since it's your first place, leave them as-is for now and see where your budget ends up. If you get all finished and still have a pile of cash sitting around, then... maybe. But still, I'd use it for something with a higher ROI for you.

I can do better than a 6% return in investing, so for me that's the answer. 

And if you get something that cashflows (which you should aim to do) then that can pay your student debt down while you save up to invest again!

I wouldn't buy your first house at auction. You don't know what you're getting, and you don't know if it has a clear title. There are a lot of houses that to to auction that have liens against the property for much more than the property's value. For example, you buy it for $50k and it has $150k of debt that the property owes to various people.

Whatever you buy, you'll need to get a title company to ensure that it has clear title.

Go to local real estate meetups and network. I look for agents who are investors themselves, and therefore know the rental market I'm in and how much I can expect for rents, ARVs and other important investor metrics.

Demographic data can be an important factor - are people moving into this area or out of it? 

Also, the local economy: are businesses moving in?

Talk with property managers. Good ones will have a sense of where rents are rising and gentrification is happening.

I've never used either of these, but I'm seriously considering the 203k. It appears to be a really good option, so long as you can get through the paperwork and documentation process. It's really important to work with a lender and contractors who know how to work with that program.