All Forum Posts by: Frank Lo

@Chris Freeburg

Thanks for the reply Chris. I always appreciate and welcome great questions like the ones you have mentioned.

These are the types of questions I really need to learn to ask myself when looking at a property, or just planning my strategy.

1. My market is not an appreciating market. It is actually very stagnant.

2. When I mentioned “buy and hold” I was referring to my long term goals with specific rental investment properties. This property will be my primary residence, but I do not plan to stay in this property for the duration of the mortgage term.

3. Rental rates are so low in my area, that it would be difficult to cash flow on the properties we are looking at.

4. I feel as long as I am close to breaking even on the deal, that is enough for my purposes with this house to live in while we continue to work and save for investing in rental properties. If this property is an expense, and not an investment, I just want to minimize the expense

@Victor N.

“Your personal home is an expense, not an investment”

Thanks, Victor.

I think I really needed to hear that. Now I am just looking to minimize the expense with options for a good exit strategy.

@Steven Wilson

Hello, Steve. Thanks for the response.

My long term goal is to supplement my income from my restaurant business. Covid has shown me how nothing is guaranteed, even in necessary industries like food service.

I would like to diversify my investment portfolio to include more than just traditional methods like stocks and bonds.

Real estate is another great industry because of the basic human need for shelter.

Because of my restaurant, I have a steady income with little to no debt.

I do have cash to spare on a higher down payment, and my risk tolerance is pretty high.

Only being 30 and being fortunate enough to have no major debt with a consistent income allows me more options. Just trying to find which works best for me

@Eduardo Aguilar

Thank you for the reply, Eduardo.

You have brought up some great questions that has me critically thinking about my goals.

1. I only intend to live in this property for 2-5 years.

2. My goal is to not only generate equity, but build more credit history. I have just taken over a family business, and it is difficult to secure financing for investment properties without at least two years of showing the business stability. I would like to eventually build a portfolio of rentals, but it seems I need to have equity/credit history before being able to secure financing for leveraging.

3. Another goal is to buy and hold to secure more cash flow long term. My business/day job generates a great income already. I do not need faster access to cash right now. I am trying to diversify my existing investment portfolio to include more real estate and passive income.

Thanks for the questions I really needed to ask myself.

@Pat D.

Thanks Pat.

I will definitely listen to that episode on my next road trip.

I fell in love with the BP podcasts after listening to Steve Sims talk about “Bluefishing” on a recent episode.

@Michael Noto

Thanks for the reply Michael.

Yes I am looking strictly at single family homes ready to move in that our family will enjoy living in.

What would you do different if it wasn't a SFH?

@Theresa Harris

Thanks for the reply Theresa.

I think finding rent even for a 30 year may be difficult for me in my area for this property.

I was looking at lowering interest, and rates are about 2.1% for my area on a 15 year.

However, some other posts have opened my eyes to the opportunity cost of spending too much up front on down payment and points.

Those funds could be better used investing for returns that will outweigh the extra interest cost spread over the same term.

Thanks for the input!

@Dan Hudson

Thanks for the reply Dan.

As to #1 of your post, the property we are looking at already has these upgrades. Can you think of anything else that would add value on a property that already has these existing upgrades?

@Jerry W.

Thanks for the reply Jerry.

These tips will go a long way.

When adding value, the first thing that comes to my mind are the big ticket items.

Seems the little things are just as valuable.

Great info, thanks for the input!

@Ryan Hodges

Thanks for the reply Ryan.

I am never looking for any specific replies.

I actually welcome different points of view so I can better understand experienced investors mindsets that are in different situations.

I feel it helps me learn how to make the right adjustments for my approach.

I think the HELOC route seems to be the best fit for me.

I’m not sure if properties we are looking at will be rentable in my market. Rental prices are too low for the mortgage payments.

I am also afraid of the potential of feeling “stuck” in a house I am not completely satisfied with.