All Forum Posts by: David Mount

Quote from @Ryan H.:

I bought a primary home (condo) in Portland, Oregon in 2019.  I've since refinanced and have a 30-year loan on it at 2.75%.  Expenses are about $1600 per month, and there is no income.  It's a small space and I'm not willing to house hack here.  Although I really don't want to move, I'm at least exploring on paper what it would look like to sell my condo and purchase an owner-occupied duplex to house hack in.

My question is whether this really worthwhile?  If I take the money from the sale of the condo and use some or all of that as a down payment on the duplex, am I any better off?  It seems to me that with home prices as they are in Portland, and interest rates where they are, I'd probably have at least $1600 per month still going out after offsetting my total expense for the duplex with the income gained from renting out one side of the duplex.  I could also keep my current condo (funding the down payment for the duplex via existing savings) and rent it out, but it would probably cash flow negative.

To come full circle, what if I just I remain where I am and continue purchasing new cash-flowing rentals out-of-state (of which I already have two)? Although I could get a low-down payment (as a percentage of the purchase price) FHA loan for an owner-occupied duplex here in Portland, I could also put very little down (in dollars) for an out-of-state rental property.

Curious to hear your thoughts!

 One thought that hasn't been brought up yet (and this was my experience) --> You could just stay where you're at for now, and then as life changes and if/when you get married, at that point you'll probably want to buy a bigger place and will have the cash to do so. By that time, you may be able to rent out and cash flow your condo while living in a townhouse or single family home once you have 2 incomes. 

This isn't the immediate card to play, but it is worth thinking about as you consider your life vision over the next 2, 5, 10 years. 

I hope that helps!

Quote from @Milan Villarreal:

Quote from @David Mount:

Hey @Milan Villarreal, I would definitely keep your current property, rent it out so the tenants pay down your (amazing) 2.5% interest rate mortgage, but then instead of doing a HELOC/cash out refi, scrape together 5% down payment savings on your next purchase via a conventional mortgage. Do you think that could be viable for your situation?

 This is an interesting strategy, but leaves all our leverage untouched... and yes the big question would be if we could live in a home/multifamily with 5% down... using the rest of our family savings... doesn't leave much liquid cash. 

You'll have to weigh what you feel more comfortable with... taking on more debt & having a slightly higher monthly payment by leveraging your HELOC VS spending more cash as a down payment, having a slightly lower down payment, but then your equity is not working for you quite as much. I think it's a personal decision where you have to factor in cash available, the difference between monthly payments, cash flow once you rent out your current place, etc. I could see going either way, just depends on what you're most comfortable and confident with. 

Hey @Milan Villarreal, I would definitely keep your current property, rent it out so the tenants pay down your (amazing) 2.5% interest rate mortgage, but then instead of doing a HELOC/cash out refi, scrape together 5% down payment savings on your next purchase via a conventional mortgage. Do you think that could be viable for your situation?

Podcast rec: Wholesaling Inc

I personally started wholesaling before I owned my own property and ended up losing a lot of money (paid for an expensive mentorship and thousands in marketing $$). I was too green. 

Switched to becoming a real estate agent first, then owning my own property. 

What are a few things you've learned so far? You're probably further along than I was when I started wholesaling (I was ~23 or 24 years old).

If it's a self-owned property that you're selling, just make sure to disclose that you're an agent-owner. A lot of states are very particular are disclosures and you can get in big trouble for not disclosing. 

Ninja Selling is a great book for getting started. 

Do you currently have seller leads coming in from your investor marketing? That would make getting started MUCH easier. 

I agree with @Russell Brazil -- you can, but it's an uphill battle to become successful. ALL IN is the way to go if you can. I was part-time for 6 months while working a government job (no cell phones allowed in the building). 2 rentals closed in 6 months, no sales. Jumped in full-time and the next 12 months closed 15 sales. I'd recommend saving up some cash so that you can launch full-time in 6-12 months

1) Write down all the buyer and seller concerns you're hearing

2) Practice your responses to those objections/concerns with other agents

3) Video marketing on social and via email. Be the knowledge broker. 

I'm sure there are lots more, but that's a start!! I agreed with both the other commenters!

At the lower price points, our team has been seeing a number of people drop out of the market and "decide to rent" or "wait and see what happens with the market." On the middle to upper end, the people who are cash-heavy and encouraged by less competition and the ability to negotiate DOWN instead of just competing UP above list price while waiving most contingencies. 

Great agents will succeed in any market :) Cheers to helping lots of buyers and sellers make wise decisions!!

Hey Travis, 

I think the better question you can ask yourself is, "How can I become more valuable to investors in my area?" If you're great at finding deals, put that message out there and go to investor meet-ups. If you're great at identifying quickly-appreciating neighborhoods that are currently undervalued, focus there. If you're great at finding buy-and-hold opportunities that cash-flow well for investors, start there. 

Have you worked with investors so far? If so, what did you feel your primary value to that investor client was? 

Hey Anthony, great question! eXp Realty is an awesome brokerage for getting started. There's a mentor program where you'd get paired with a local mentor who can help you get started. There are also some unique factors that make eXp attractive to include health insurance options and passive income through Revenue Share. If you want to chat more about it, feel free to schedule a call with me: https://calendly.com/davidm7/e...