All Forum Posts by: Corey Rissler

Hi Melanie! 

I think everyone's response here may be a little different and most people here are against doing much until you are debt free. However, my story is a little different than the rest while similar to yours! My personal response to your question would to be let the CC debt ride. Get into a property as soon as you find the "right" deal. I say this because there is many ways to wipe out the credit card debt without using your own money to do so and accelerate not only your path to being consumer debt free but also increasing monthly passive income! I started my journey in the same situation as you. After watching many podcasts and following a lot of multi property owners and getting their advice I finally admitted I was either going to get into the game or sit on the sidelines until the "opportunity and time" was right. Truth is, the timing will never be right. You either do it or you don't. These nice folks at BiggerPockets actually pushed me over the edge after learning the BRRR strategy and using and LLC to invest with. Instead of paying everything off and waiting for the "perfect time" I just did it. I was amazed with the results after using the BRRR strategy and also deciding to house hack with a 4plex as well. I purchased a distressed 4 plex and also increased my credit card debt almost 5k to rehab the units and live in one. After fixing it up and moving in the home appraised for 20k over what I paid for it. I did a cash out refinance ( tax free money ) and took my equity + rehab back out and paid off all of my credit card debt with that money while saving rent and making almost $400 a month just to live there. Things just multiplied from there.. I now have over 115 doors and no consumer debt thanks to the passive cash flow and BRRR strategy. I hope this helps. Again everyone's situation is different and make sure you find the right property to do this with. Do your math and check your market always. Best of luck!

@Kevin Van Witt Right on! First of course the structure of the deal you are doing is the most important. I managed to own mine for 75K after my rehab and cash out refi. Also you will need to walk a contractor through if you are trying to remove walls or do they have doors to other units? Do all the units have kitchens or kitchenettes in them already and is it possible for you to get the city to separate the utilities for tenants or will you be including that in rent and what could you get for rent. Also is there a place to put on site laundry or room in the units to put laundry hook ups. Check in to all of that 

@Avihay Ohana This is located in Wyoming. I am not in the hotel business either but some make for great conversions into apartment units 

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $350,000
Cash invested: $174,000

21 unit hotel. Converted to Low income studio apartments. BRRR Strategy for hotel / apartment style buildings

You should look for a new bank if you have not already closed on this property. There are many banks locally owned and operated in Wyoming that would love to give you a loan using your LLC and some may not even ask you to personally guarantee the loan. Even if they do most of them will only have you on as a personal guarantor which will still keep this investment property off of your personal credit. I always keep mine in my LLC especially the loan and insurance to keep my personal income and finances safe in the event of a lawsuit. Plus keeping investment properties off of your personal credit is always beneficial to keep your DTI low in the even you need to purchase or get a loan for something in the event of an emergency. Nothing is worse than being short on cash or having a medical emergency you need a loan to help cover and being told no even with perfect credit due to having hundreds of thousands of dollars in investment properties tying up your credit availability.

Will do! 

Thank you!

Hi all!

I am currently getting ready to scale up from my 4plexes to apartment buildings.  My current insurance company ( American National ) does not provide coverage on these types of properties, unfortunately.  I was wondering if any of you would be willing to share with me the companies you use to insure your apartment buildings and some positives / negatives or types of coverage I should look out for or make sure is in my policy. 

Thank you!

I live in Casper, WY. I discovered house hacking through BP actually. I was formerly living in way too much house for my needs and wanting to expand my RE portfolio, so I decided to try out house hacking. I got with my good friend who also is a broker and we found a few 4plexes. I thought this would be ideal as not only could I live for free but I could generate income while living in the units. Long story short I wound up renting out my previous home and refinancing some of the equity out of it for a down payment on the 4plex.

I wound up making a deal on a great property and purchased it about 20k back of appraised value and used that equity to do some renovations to the unit I was going to move into. I now live in one unit. Purchased the home for 315k and acquired a 30 year fixed note on the home and had all other units rented out within a month. Now instead of having a 3k mortgage every month I get paid $650 a month for living in my 4plex and have since used that move to purchase a second 4plex which also cashflows about 850 per month.