All Forum Posts by: Drew Eldridge

Great property for buy and hold investors or flippers. Needs approximately $15k repairs with an ARV of around $155k. DM for more details.

I can highly recommend @Rocky Griffin.  He provided me with pictures of the properties and real market data to help me decide on the purchase of a package of properties that was in his area.  He's an active investor with a good network to corroborate his findings.  Very helpful! 

Thank you both!  I appreciate any tick/tips.  

I'm sure it's been discussed before but a search didn't yield any current answers.  How do you guys best use QuickBooks with regard to rentals?  I'm looking to track each rental property in conjunction with the bank/credit card accounts associated with the business.  Since we aren't truly selling a product or service per se, I'm looking for ideas on how to best organize.  Thanks!

Has anyone experimented with direct mail to Multi-family apartment owners as to which has a better response rate: typical yellow letter simple postcards or more formal appearing letters?  And response rates to mailers that appear to be individual buyers (ie. name and phone number only) vs investment groups (group name and website, etc.) in the multi space?

@Linda S. Do you mean why buy a property cash vs. get a mortgage for the get go?  Because banks will typically loan 80% of purchase price or 80% of appraisal whichever is lower.  Also, many sellers prefer cash buyers. 

Example:

Purchase price is $85k.  Appraisal is $150k.  So the bank would only loan 80% of the $85k.  So pay cash and then get it appraised and the bank will then loan you the full $85k back and more if you are so inclined.  

@Jason

@Jason D. Even with a line of credit, you are using that equity to grow your portfolio.  Use the line of credit to purchase a property.  Pay on it while it's "in service" then repay it when you finance that property.  Then do it again.  And I'm assuming one would do the exact same from the proceeds of option A.  

I was recently posed a question and I'd love to hear your thoughts? Let's say you have a typical small portfolio with buy and hold properties that are leveraged (let's say 70% LTV) but own one property outright. And let's arbitrarily say that the fully owned property is $200k appraised value. The goal is to take cash out (we'll say $150k or 75% LTV) to then use to purchase properties using the BRRR strategy. Therefore, this cash would typically only be tied up 3-6 months (and I know some require a year or so seasoning but let's use 3-6 months) at a time and then recycled to do the same thing again.

Assuming both are options, would you:

A.  Get a mortgage for the $150k.

B.  Get a line of credit for $150k. 

Obviously both have slightly different tax consequences, affect your balance sheet differently with regard to net worth, and many more implications. But I'd love to what you'd do and if it's in line with what I suggested.