All Forum Posts by: Cody Richard

That isn’t an option. I’ve got a great house in a great area with wife/kids. We’re a $200k salary household but cash poor outside of securities and retirement max outs. 

I understand how effective of a strategy it can be but  it wouldn’t make sense given the quality of assets we can put the cash down on. 

Hi, 

Are there any negatives to using my capital in securing a secured LOC for the down payment as opposed to dropping all i've got to closing on a deal? Secured rates are 3.25, cash flow will cover the LOC payment and clear it in 2 years. I've still got my cash and can move on to the next.

I don't seem to understand how people move beyond 1-2 properties without acquiring capital through alt means. For example, I have 100k. Costs 50k closing/down for property 1 and 50k closing/down for property 2, this nets me, let's say, $500/month/property. Long term the investments make sense but bringing in $12k a year with 3% growth annually, leaves around 8ish years to recoup my cash and get into another deal without setting money aside and saving left/right to have cash on hand for that next deal. People say just find a partner like these people are knocking on doors asking if anyone wants to take their money for investments but they seem very uncommon in the grand scheme of things. I understand many of these people selling now are just cashing out on the historic RE price growth over the past couple years. 

I've spent hours going one property after another using rental analysis tool and rental property tool at current housing, condo, multi prices only to find anything that doesn't have 3-5 people jammed into a dilapidated shed to have negative cash flow or minimal CF with extremely risky variable expenses. I'm only looking in my market at the moment (Houston) where I see people mention the great opportunities they keep finding but I'm curious if it's all just flippers attacking the mass gentrification of Houston proper. 

What is some advice for a noob on buy and hold rentals from someone that is having success in the Texas markets? It certainly feels like 85% of this group are flippers or rehab cash out guys and this just doesn't apply to myself. 

The property I'm looking at has been on the market 1 day and going to the property tomorrow to inspect. It's a 70s 1x1 condo with minor renovations. Its an extremely basic deal that I wanted to use to kickoff my portfolio despite it being 1 unit when I wanted 2-5 units per acquisition. Houston just doesn't have duplex's for sale due to being so spread out. Texas in general is like that because of all the space. We don't build up high population density compared to many other states. 

Sounds like a plan but I'm focusing on a buy and hold, cash flow portfolio. The issue I'm having is I can't get into my first deal without dumping just about all the cash I have as the 20% down. It's rent-ready with a tenant but that being said, the CoCr is some 20% but monthly CF is around $300. I intend to hold the majority of the assets I acquire long term but emptying the coffer for $300/month will take years to get into a second deal with a partner/investor. It doesn't appear hard money loans are appropriate for my strategy but then again I'm just beginning so alternative lending is a very new concept to me. 

For people that recently or are close to buying their first property, are you spending most of your capital on the down payment? Feels that way for a property I found with great CoCR. Don't see how a second opportunity can be had without saving and stockpiling returns, which are minimal, on the first. 

We use CoStar, REIS, RCA, and Axiometrics. 

Thank you! I'd like the first property to be local (within 60 miles of Houston MSA) to get my feet wet before exploring Texas as a whole and beyond. 

Hi Everyone, 

I've been interested in getting started on entering the CRE industry personally for a while now and have finally taken additional steps towards getting that 1st property through joining this great community. A little background on myself. I've worked in the multifamily industry now for over 6 years between two of the largest players in the commercial world (CBRE & JLL). I'm an asset manager handling roughly 150-170 properties nationwide through the Fannie multifamily loan programs. Mentioning that here because there really wasn't a place in the credentials section to do so.

I'm excited to be here, learn and finally take that leap into purchasing my first buy and hold property for the purpose of creating a portfolio of deals one day.

Hi Everyone, 

I've worked in the multifamily industry for the past 6 years and really like what I'm seeing from the BP community, podcasts and education info. I've targeted some properties local to my area to get my feet wet. Run the numbers, it all looks great but I'm lacking the capital to execute that 1st deal. 

How or where does someone approach a passive investor/ partner when the strategy is to buy and hold with marginal cash flows when split?