All Forum Posts by: Denis Ponder

I will second this one.  If you don't own a primary, that's the best place to start on this journey.  Get a small MF you can house hack and start that way.

I'm not an expert on the auction scene, but, from what I have read, that is a challenging first step into investing.  Sometimes, sight unseen, a lot of unknowns.  Do you have experience managing renovations if needed?  Do you have the connections already established?

Quote from @Luis Cerwin:

I have a single family house in Detroit (I'm out of state) for past few years. This october the tenant left without warning and house went vacant. Repairs were needed and were finished by early december. Now the house has been sitting vacant for over one month despite PM putting it on zillow and other sites.

I'm curious, at what point does this reflect poorly on PM and suggest I should get antoher PM? On that note, any good PMs anyone would recommend in Detroit area?

Also concerning, I just looked at zillow post and the pictures are very grainy and unflattering, even though they should have access to the nicer photos (I have had these for years, see below)..

I've also been getting lots of calls form companies wanting me to sell my house. Anyone familiar with PMs who collude with house-hunting companys to purposefully make me more inclined to sell?

The picture they have on Zillow vs one of the several I have with the same view:

I don't know who your current PMC is, but I had to switch from my initial one in Warren, MI as it was taking too long to get a renter placed.  I am now working with Logical Property Management and they have done a great job thus far.  I'm very pleased.

You got it!  Don't get caught up in SM, if that's what you are connecting with.  Consistency is the key to success.  Stack good decisions on top of each other, consistently, and it will pay off over time.  Be patient.  Think 10 years down the road, not 2.

I would also echo the house hack idea.  Find a down payment assistance program and see what that looks like.  If that makes home buying affordable without putting you in a pinch financially, go for it.

Find the highest paying W2 you can and work that while you work your wholesale stuff on the side.  As you grow the real estate stuff, you can phase out/down the W2.  But, the higher income you have right now, the faster you can work your plan.  That's what I would do, and currently am doing, to have enough income from real estate to buy back my time when I'm ready.

To each their own.

If the only constraint is you don't want to manage it from a distance, why not just hire a property manager?  If the assets makes financial sense to keep otherwise, hiring a PM solves your problem and allows you to keep a performing asset.

Most likely, the only way you will find something like that is through private lending with friends/family.

What is low money down to you, percentage wise?  5%?  10%?

BRRRR is a learning curve and most lenders aren't looking to fund 100% of a project for a newbie. Additionally, you may be asked to show some availability of liquid cash/assets to weather a storm in case something unplanned happens. And it most likely will.

There are some loan products available for low downpayment if you are willing to do a live and flip situation.  You can get some money to purchase the property and additional funds to renovate it as your primary residence.  Might be an option.  You do have to live in it for a certain period of time as a stipulation.  I don't know all the details, others on this forum can answer that better.

Why not buy a primary residence and live there for a while?  At least your money is working for you with an appreciating asset and you can move out and rent it out down the road.

Real estate isn't something you want to start/navigate while you are cash strapped.  Find a side hustle, tighten the belts, do anything you can to build up the savings.  You will need it on this journey, regardless of how well intentioned you and your GC's are.

Yeah, that does make it tough.

Primarily, thank you for your service!  Phenomenal sacrifice and much appreciated!

Keep working it and grinding it out.  The nice thing is your equity will likely grow quickly in the area.  So, while you might not be able to save up as quickly, the gain in net worth could very much be worth the wait.

Looks to me like it's $6,800 based on the math in the parenthesis.

If that's the case, looks like OP bought a little too much house the first time around.  You might need to be patient and save up more money or look for ways to increase your W2.  It's going to take a little while to get there financially.  Can you house hack where you are currently to accelerate your savings?

House hack can be a MF where you still get the feel of your "own" home but you get an investment at the same time.  You can scale from there.

If you are planning to stay in the area long term, I recommend buying a primary.  Take advantage of the low down payment options and start to learn about buying a home/property and taking care of it.  You can build from that.

I also recommend waiting until you are married before you do.

Were they still calling it Harvard of the South when you were there.  LOL

Yes, exceptional value!!