All Forum Posts by: Cody Barna

@Jonathan Morgan it seems like you've already made up your mind, keeping the house as a rental makes the most sense. Not sure what your financial situation is, if you plan on using equity from the first property as a down payment for the second. That's definitely something to consider, whether the numbers still look as good if you pull equity out. If I was in your situation I would absolutely hold onto it, plus I'm assuming you have a good understanding of the homes condition.

@Naydan Will I would narrow down your criteria and create a clear game plan, it's definitely overwhelming if you don't know which direction you're headed. As Nicholas mentioned house hacking is a great way to get start especially if you have subpar credit and a small downpayment. The BRRRR strategy can be extremely powerful, however that comes with a higher level of risk. The biggest being the fact that in most cases you won't be able to get traditional bank financing for a property that needs significant work. Using hard money comes with much higher fees and a very short holding time compared to bank financing. There's a lot more pressure to make sure the renovations are competed within a given time frame and that the property appraises for high enough to repay the lender. With that being said, it can absolutely be done by a new investor, you just need to focus on your current situation and determine what will be best for you.

@George Allen if he's willing to do that and reduce the sale price by $36k that could save you a significant amount of money, considering the loan term is only 10 years. Worst case scenario you could reduce his monthly rent and use that difference to cover the closing costs. If your closing cost are 13% of $240k then that means you could reduce his rent down to $500 per month and call it even. (Quick math)

@Willie Bunche I would highly recommend using the LVP, it'll be a lot more tenant proof compared to the carpet. For paint I suggest picking lighter colors such as white or a light gray, this will make it easier if you own multiple properties. Some people avoid colors that show marks and dirt easily, but regardless of the color you'll most likely have to repaint when the tenant moves out anyways.

Have the sellers specifically mentioned that they need to find another house before they sell the current one?

@Katharine Schmuff what are your plans for the property? I'd be curious to know the ARV

@Khoa Nguyen just because an agent is extremely busy doesn't make them the best option for you, most agents know very little about investing and how to actually determine what's a good deal. Not to mention high volume agents often have a designated buyers agent that works with all potential buyers. You're TYPICALLY just another number for the top agents and you won't receive the one on one service that you might except. Reach out to local agent through Biggerpockets, attend meet ups and talk to other investors to get referrals. These are all good ways to get in touch with investor "friendly" agents. I know Graham Stephan is an agent in LA, he's been a guest on the BP podcast and owns a handful of rentals himself, if you can get in touch with him that may be beneficial. (He's a well known Youtuber now so it may be tough to reach him.)

@Miles Fletcher it may be more challenging if you're knocking on cold doors, home owners that have no desire to sell or show no signs of distress. However you never know someones current situation, they could've just lost their job or a family member and now they need to sell their home in order to move on. That's an opportunity most people would never know about unless they reached out to the seller directly. Eventually it may become obvious, but at that point they'll have an endless list of investors/wholesalers willing to buy their home for cash. The majority of the doors you knock won't be interested in selling, but it only takes a few maybes to get going in the right direction. (Make sure you stay in touch with those potential sellers and continue to follow up.)

@Miles Fletcher focus on building a relationship with the potential client, don't come off as a typical salesman. Knock on the door, introduce yourself, ask them how their day is going and find out what you can do to help them. (Build rapport) It's much more effective than being aggressive and coming off as confrontational. I recommend wearing bright colors, smile, keep your distance from the door and don't cross or put your hand behind your back. (Tip: For men stand at a slight angle and for women straight on while keeping your distance.) Good luck!

@Dan Delcorio considering you've lived in your primary residence for over two years, you should be able to sell it free of capital gains tax up to $250k if your single or $500k if you're married. You could also look into doing a 1031 exchange if your goal is to scale your RE portfolio.