All Forum Posts by: Don Spafford

@Marquis Soto It's okay. Don't get overwhelmed, everyone started where you are at some point. My first property was also a 4 plex, but I used a local lender that could do a 10% down payment and I borrowed that from my 401k. But that is what I had to do just to get started in 2017. Now I am a partner in RV Resort syndications, large multifamily developments, business acquisitions, NN retail, and even an international hotel project. So things can move quickly depending on you and how quickly you want to scale. You can certainly move slowly as well.

One thing that many people in CA say is, live where you want but invest where it makes sense. For you I would assume that cash flow is the priority, it was for me when I started. So get very familiar with analyzing properties and review maybe 100 per week, even if you don't have any interest in buying them, just to know the process and be able to more easily spot a good deal when you see one to be able to move quickly. You should also try to get pre-qualified as much as you can, but also understand that most lenders will consider the cash flow from the rented units and add that to your income to qualify for a larger loan than you would for your primary residence. 5 units and up is a commercial loan and will need to have a specific property to be approved for a loan and typically require larger down payments, though there are some lenders that can do 85% LTV with commercial properties.

Spend time listening to podcasts and read a lot of books to learn as much as you possibly can along the way. Take time to find the best first deal that you can, you want to start strong and then things will start to move more quickly. There are many mentorship or coaching programs as well, but you would need to decide what strategy you want to do first and then decide if it is worth paying for that coaching or use that money to buy or invest in a deal. Depending on your time availability, you may even want to consider being a passive LP investor in a syndication, or look into JV opportunities to leverage other peoples time and skills.

Depending on the size and how difficult it may be to get to it, I've paid about $5-8k. I've replaced a few over the years, each different for different size properties around Idaho Falls, ID. Paid a little less for an apartment unit in Arkansas, but it was much smaller.

@Chandler Koch Welcome to BP! This is where I started as well, and then about 5 years later I was able to leave my W2. I'm in Idaho Falls. I'd be happy to have a call and discuss opportunities in this side of the state. I just listed my last property for sale, a fourplex in Pocatello, because now I focus more on commercial RE and syndications to be a true passive investor and not deal with tenants and repairs. Let me know if you would like to have a call sometime.

@Ray L'Heureux I have a fourplex in Pocatello, ID that I just listed for sale. 1031 is welcome. And if you are searching for something more, we will be happy to help you search for other properties anywhere in SE Idaho.

@Tanya Karle Great to have you here! I'm also in Idaho, the Idaho Falls market. I'll be happy to meet and talk with you and explore opportunities to help you achieve your goals.

Quote from @Lance Christensen:

Quote from @Don Spafford:

@Lance Christensen I'm in East Idaho. Happy to connect. Please let me know if there is anything I can help you with.

Hey Don, I have some questions about investing around East Idaho. Would you be available for a call? Happy Holidays! 

 Yes, always happy to help

Any particular place in Idaho that you are interested in? I have a fourplex that I plan to sell soon. It would be great for house hacking. I still have a note on it so I can't provide seller financing. But you could maybe assume the loan and get a secondary loan for the rest. This was my first investment property and I used a loan from my 401k for the down payment and also used a local credit union for a 10% down payment on it when I bought it. Those could be options you could use as well besides seller financing.

Maybe not. There are local lenders in this area (Idaho) who offer low down payments for investment properties. In your case if you want to build a new home, you can likely do it with less than $80k for a down payment. When you say "small" home, unless that home is still around $1M. I know the area you mentioned is higher priced, but there may be some options to not need as much up front as you think.

Here's a thought. On one hand, if you can keep it, that income will go a long way to help you qualify for a better loan for your new home or for other rental purchases. Do you have access to other funds that you may not have considered? Maybe a 401k? You are allowed to borrow from your 401k with no penalty, as long as it is repaid. But for a primary residence loan from your 401k can amortize it over a longer period than for any other loan from it. I borrowed from my 401k to purchase my first rental property and could only spread it out over 5 years, though I paid t back in 4. The interest gets paid back to yourself. You only lose out on any gains that money would have had in your 401k but as in my case, the appreciation of the property was way more valuable than the little gain that money would have had in the 401k.

Are you referring to small MF, or are you interested in a syndication into large MF apartments? Most syndications are held for about 5 years and some include a refi around year 3. So those could meet your needs without you having to do any of the management or additional expenses for repairs. There are also more than just the standard value-add multifamily available for syndications, you also have build to rent (new construction MF), RV Resorts and campgrounds, business m&a funds, storage, and much more! You can even do private lending and get great returns. Something for everyone depending on your goals and needs.

I love talking about RE investing. Happy to help any way I can.