All Forum Posts by: Daniel Jodrey

@Daniel Jodrey

As some others have said, house hacking is the way to get started here. Would be curious to hear an update on how your search is going so far. 

I would allocate some capital into lead generation while also working with a local realtor that is investor friendly in your markets. Try pulling some off-market homes with distress indicators or higher equity (70% or more). There are some sites where you can pull list for free here on BP :). 

But even though you are feeling the FOMO from not investing during the c19 era, just know that there really is no silver bullet to fire when it comes to investing in real estate.
Especially for the strategy you're wanting to implement.

@Daniel Jodrey

With $300K in capital and a strong hospitality background, you're in a great position to start investing in multifamily or STR/MTR properties. Given current market conditions with high interest rates, consider creative financing options like seller financing, partnerships, or house hacking to maximize your leverage. Start by analyzing cash-flowing properties in your target markets (Clark County, Portland, and coastal areas) while networking with local investors, agents, and lenders to find off-market deals. If multifamily pricing is tough, consider a mix of duplexes or small commercial properties to scale strategically.

Good luck!

Everyone is saying househack which is usually the right move, however you are likely the exception because you are living rent free with family. 

You have enough cash for one deal. So do one and see how it goes. If you are handy and because you seem to have time, I would aim for a cosmetic flip (update bath and kitchen, and maybe floors). You’ll be able to build additional equity which will help down the line.

The key thing though, more than the first deal is you need to rebuild your income so you can do deal number 2. Excluding your potential partner, you are probably 50k away from deal number 2 and you will get slightly more favorable financing with steady income.

Third thing you need to do is narrow down your buy box.   You are all over the place in terms of location and strategy. It’s one deal so taper down to 2-3 neighborhoods so you can know those neighborhoods like the back of your hand. What is the sale price I kept to be, how long will it likely be on the market, what will rent likely be, how long will it take you to rent the place.

Keep up the good work Daniel! Your focus and dedication is evident.

Portland looks more affordable and looks to also have a better price-to-rent ratio than Vancouver... If you are looking to invest in your backyard.

However, in both Vancouver and Portland, with price points showing a median home price of ~$480k and MF showing about $200k+ per unit, cash flow will be a challenging task. A market like yours is prone for little-to-no cash flow, but favorable appreciation.

If you are putting a substantial down payment up (likely 30%+), you could accomplish both. However you need to also consider your COC return and where the best use of your cash is. Comparing ROR to potential appreciation on your cash. Unless you can get 8%+ on appreciation, you're better off putting the cash into the stock market. But, let's stick to real estate...

When determining where to put your money to work, you always have strategies that provide returns in short-term periods of time and those that provide returns in long-term periods of time. Of which, some being unrealized gains.

Here are some options:

Tax liens - provides potential for interest income and the potential to gain ownership. Can take anywhere from 60 days to 4 years - depending on the redemption period.

Tax deeds - provides potential for interest income and to gain ownership. Can take anywhere from 60 days to 4 years - depending on the redemption period.

With these two strategies, you can either fix and flip after - renovate, rent and hold or wholetail. This leads into the next short-term strategies.

Fix and Flip - provides potential to invest lumps sums and earn a multiple back in a short period of time.

BRRRR - provides potential to invest lumps sums and earn a multiple back in a short period of time on the cash out refinance. However, this is a buy and hold strategy for cash flow, equity paydown and (hopefully) appreciation. This strategy provides incentives for (potentially) both short and long-term investment strategies simultaneously.

Buy and Hold - provides either; little-to-no cash flow and high appreciation, high cash flow and little-to-no appreciation, or a little of both. This is a long-term strategy that does not return your lump sum investment for a long period of time (if at all).

Bank auctions is another option to entertain.

Being that you have partners, I realize you all are not considering house hacking. But for a personal strategy, I recommend this for if you do buy where you are residing. The rent rates look good and if you get a multifamily, you should get the majority of your mortgage covered if not the entire amount (if you put down 25%+). This would be a long term strategy.

Depending on your access to deal flow, you can conduct these options in your market or outside of your market. I do not recommend flipping or BRRRR'ing remotely to start. You can manage buy and holds, but not value add until you get more experience and can manage people effectively. For the cash flow models, you'll likely need to seek remote opportunities. If you're considering PA or assistance with tax auction consulting, give me a buzz.

Feel free to connect for further dialog. Hope this helps.

OP.  I would stop for a second.  On paper put your goals and then a plan to scale.  You will see you hit a road block very quickly on your cash or equity to do the next deals.  

Divide your REI types into the following. Appreciation long term, cashflow, and cash snowball.

In your shoes and current situation I would do a value add to build cash.

A. Pick a house with extra acreage you can subdivide. The original house if it is a 2/1 then ADU into a 3/2. Use as primary for 2 years and sell taking advantage of no taxes in capital gains 2 out of 5 years primary. Rent a room. You take the smaller unit.

B.  Pick the worst house in a great neighborhood and modernize.  Again see if you can do ADUs.  Or split off lots.  Again 2 of 5 years.  Rent a room.  You take the smaller room. 

C.  If you’re near military, coast guard, hospitals, airport, etc.  look there for your future MFH.  Or your house with room to rent. 

@Daniel Jodrey

It sounds like you’ve put a lot of thought into this, and you’re in a great position to take that first step. Given your goals, I’d say house hacking a multi-family is your best bang for your buck. It lets you live for free (or close to it) while building equity and learning the ropes of being a landlord firsthand and after you've been in it a year you could rent out your space and go back to living with your family member if you wanted too. That experience will be invaluable as you scale.

Once you’ve stabilized that, leveraging your hospitality background into an Airbnb or mid-term rental could be a great next move if that’s something you’re passionate about. STRs take more hands-on management, but they can be highly profitable when done right.

Down the road, if you’re looking for something more passive and stable, out of state investing especially in the Mid-South where price points and cash flow are more favorable, could be a great addition to your portfolio. But based on your post, I think a more hands-on approach would be a better fit for you to start.

1. Don't partner. You have enough money to get started.

2. House hack if you can. 

3. Don't sleep on a live in flip. It's a great low risk way to get started. At the end of a couple of years, you can always refinance and keep it as a rental if you want to. 

4. Be kind to yourself. It's okay to do nothing and keep saving up money. 

I have nothing to sell and would be happy to help if you think that I can be a resource. Feel free to reach out. 

@Daniel Jodrey

-start with a house hack

-don't partner on your first deal