All Forum Posts by: Eric Beise

@Joshbrook did you see this?

@Vinh Huynh while there are a few different ways to force equity into a property and with that raise rents, it sounds like this just isn't an investment property. This isn't uncommon, as most places don't cash flow. My advice to you would be to cut your losses and sell it. Go find a property that is already generating profit for you, or that has a clear option that you feel comfortable executing to add value. Sorry that probably isn't what you are looking to hear :(

@Kyle Hlavac Welcome to the best resource and community to accomplish your REI goals! I think you'll find the people here love passing along any knowledge they have, paying it forward, because everyone was a rookie at some point and needed help.

If you want to grab coffee or a beer sometime feel free to message me!

I really like cozy.co for management. Not only is the process really user friendly, they also provide a lot of valuable tips and tricks relating to being a good landlord. 

One big thing to know is how to not discriminate against protected classes. Homeline should come in handy there, along with providing a ton of other valuable info. It's surprisingly easy to unknowingly be breaking discrimination law.

I'd love to meet up and chat more if you want, send me a message.

I think this depends on your risk tolerance. If you want the higher return, and are okay with the additional leverage that comes from your line of credit then go for it. With a cash flow of <400 per month you have a good amount of give there, so the additional payment is not that big of deal. 

The only other thing I would consider is what are you going to do with the money you didn't invest. If you can find more deals like this or whatever meets your investment criteria, and want to continue to add properties, it makes sense to leverage up a bit and hoard cash. If this is more a unicorn for your market and the extra cash is just going to be sitting in your bank account, then consider putting in in the property. 

Either way, you have a good deal so you can't really go wrong. It's just about what makes sense for you personally.

@Adam Widder it would be worth making sure that your better half can support the mortgage amount you will need to break into the type of investment you want to venture into, meaning will you be looking for investments in the <$200k or closer to the >$400k? Those are going to require very different incomes. 

Assuming you have already thought through that, then you should feel much more free in your type of employment.  

Hi BJ,

My company, Wits Realty, sounds like it could be a great fit for you. Feel free to send me a message and we can dive into identifying exactly the solution that makes the most sense for your situation. 

Hi Jack - You certainly are in an advantageous position! I would agree with the more conservative approaches that have been outlined in this thread. 

A couple of additions that I think deserve more emphasis are:

1. Your credit score. 

While there are are plenty of options for loans with a 645 credit score, you will find much better terms once you get that up to 700+. All it takes is consistent payment of one or two accounts over the course of 6-12 months (totally dependent on your situation, but from what I can tell, you would fall in this category). 

2. Your stage of life. 

You are uniquely positioned to be incredibly flexible. What I mean is you can do things like move to be close to work, so you don't have to drive (and thus avoid massive $$$ in expenses every year) or 7 roommates (maybe an exaggeration, maybe not!). Meal prep one day a week so you don't eat out the other 6 days. 

Once you get a house under contract, start telling all your friends and co-workers you are looking for roommates. Being 23, I will guess you have a lot of 21-25 yr old friends. Most of them have barely considered buying a home, meaning you have a network of friends that would likely love to have someone they know and trust as their landlord! 

If my first point is to wait for a while before investing, my second point is don't wait too long. You are in a fantastic window to set yourself up for a crazy amount of financial success long term. 

Your future is bright and the road you have started down has laid a great foundation, keep following the same principles and you will do well!

I was just thinking I wanted to meet up and hear about what other investors are doing in our market. I would love to meet up this Saturday, but I'm only free after 5pm. Even if you all meet earlier, thanks for initiating! 

Hey Nick! 

I love the enthusiasm and you have a lot of the right ideas. I did something very similar a few years ago and it has changed my entire career path. 

If you want help navigating which areas are work for your strategy I would be happy to chat with you and help you in any way I can.  I do a lot of work in Minneapolis and areas of STP. Feel free to reach out!