All Forum Posts by: Darius Wade

I acquired my first property in Feb of 2023. It was purchased as a buy and hold with a 3.5% down FHA. My one year primary occupancy term is almost up and I am trying to determine what the next move should be. I've been hit by the HGTV flipping bug. So now I'm unsure. The initial plan was to buy another buy and hold and rent out my current residence. However, I'm curious if acquiring a house to flip would be smarter and look to 1031 those proceeds into my next buy and hold property instead of the low down house hack strategy. Just curious to see what the BP community thinks could be a good option.

Is there a proper way to do this then? I am in a similar situation where I was looking to do a quit claim into the LLC. Aside from changing the insurance is there anything else you can do aside from paying off the mortgage from the LLC's funds?

First off congrats on working towards starting your investing journey. Being in an expensive market such as San Fran will require you to look out of state so others in your area would agree that this approach is right. However, in terms of MTR I have not personally done it but agree that the strategy is a viable option depending on the market. In terms of the location you are looking at it is up to your due diligence and your risk tolerance to determine if it is a good market. There are tons of traveling nurses out there and if your research validates this opening in the market then yes it is a market to consider. But regardless of whether that is the case the properties you look at must make sense and cash flow not to mention have multiple exit strategies. The goal is MTR but find locations in the market that could support STR or even LTR. This lowers your risk as you have multiple ways to make sure the property is occupied and the mortgage is paid for.

In terms of support in the area this can be challenging but definitely doable. Utilizing a place like bigger pockets or LinkedIn to find other investors in that area is essential. You need to look to network and build a rapport with people from there. This is because when looking to invest out of state, especially the first time it is essential to have some boots on the ground in that area. They can recommend contractors, agents and differentiate good and bad areas. You could either take that approach or my suggestion which would be to look for a partnership for the first deal. This will lower your cut but "50% of a good deal is better than 100% of no deal (or bad deal)". I hope this helps.

Thank you for the post and reaching out to the community. I am in a very similar spot as you within my real estate journey. Many of the guru's and videos we see online make it seem like such an easy concept but in reality it isn't. The first thing I would suggest is that you may want to expand your search radius. Many areas of NY are very expensive and will not cash flow but in a lot of states if you look an hour or so out from the major cities deals can look much better. See all that is available within that distance. If that doesn't yield results then make sure to join your local REIA and look to network. Here you hopefully can inquire with other investors on there process for actually finding cash flow within your market. Hope that helps.

Welcome Alec, happy to have you in the community. Just continue to be active and you will connect with plenty of people and learn a whole lot about real estate.

 That's the goal, I was curious to see what other creative options might be out there but I will start slow and save up for the next property.

 Thank you for the words of advice. In terms of acquiring properties regardless of the rates I will still look to make purchases. However, I was inquiring more about the second half of your statement. I would want to cash out refinance to 1031 exchange like you mentioned. However, with increased rates the only way to make it make since would be for me to liquidate and roll into a new property or wait it out until rates drop which is what others have suggested and what I will look to do. 

Thank you all for the input. The information is very helpful. I will be patient continue to build the equity in this property and house hack into the next property.

 Thank you for the response. Currently I have 169K on the mortgage and 210K for the value of the home. So I have money that I can pull out. So with a Heloc do I keep my current rate and loan on the property?