All Forum Posts by: Greg Kasmer

@Steven Worley - Good information to share. Has the PHA specifically spoke to areas they'd like to invest in/purchase? I have look sporadically at the city for multifamily 5-15 units, but mainly in the Northeast. It will be interesting to see how this plays out!

@Mario Gonzalez - If part of your requirements is to not to tap into your funds, are you able to take out a loan against the equity in your after tax portfolio? I know some other brokerage firms allow that, but not sure about Vanguard. If you're able to get a loan against your account then you can use the funds to make a purchase/down payment on real estate, but you should have a solid plan to increase value and secure long-term funding on the property afterwards in order to pay the loan back. The other consideration is whether you find a partner who is looking for an equity partner and you are on the loan with them because you have net worth for them to tap into. Obviously that requires you to network and find the right person as it involves you setting up a relationship with someone that you know and trust. 

@Patrick Elias - With multifamily properties with this many variables at play including renovations, increasing revenues in the future, changing expenses, and timing coming into play, you would benefit from modeling this out over a 3 or 5 year time period. There are several cash flow spreadsheets that people use to analyze multifamily properties including modeling out renovations and timing of those to incorporate holding costs. I would look up Best Ever Cash Flow Calculator by Joe Fairless and Syndicate Deal Analyze by Michael Blank as a starting point. I also have a few others I use as well if you are interested. Just DM me. Good Luck!

@Jerry Zigounakis - I agree with others in that the cash flow benefits of BRRRR in this market are difficult as your debt payments are higher with higher interest rates. However, if you're able to maintain a small/minimum cash flow now, but with the ability to take out cash and find another BRRRR you'll continue to build a portfolio and over time have a bigger portfolio and control more assets with more equity. Whenever rates do drop again you can refinance and reap the benefit of a lower interest rate on multiple properties instead of just one if you winded up just sitting on the one property. BRRR may not create as much cash flow now as before, but could still be a vehicle for long term wealth building over time. Good Luck!

@Evan Thomas Andriola - Congrats on your deal! Very big first step! Best of luck!

@Mitchel Johnson - Mitchel, congrats on thinking about real estate investing. I would suggest you attend a few local REIA groups and in your area and network within those real estate communities. A quick google search identified a few below you might want to consider!

Good Luck!

DC-REIA Greater Washington DC Real Estate Investors Association Mtg

Monthly Meeting | Washington Real Estate Investors Association Network

Traction REIA - Real Estate Investors Association Meetings Online & DC MD VA FL Sarasota REIA - Traction Real Estate Investors Association

@Joshua Logan - Josh, I would suggest with others have indicated. You'll probably want to call a handful of DSCR lenders and explore that route given your situation. They'll likely have a product to fit your situation outside of a traditional bank loan. Good Luck!

@James Huff - Congrats on the duplex purchase. Just to confirm your $400-$500 cash flow number... Are you including all expense in your cash flow calculation? Meaning mortgage payment, insurance, repairs/maintenance factor, utilities, property management (even if you're doing it yourself), reserves, and a vacancy factor? If all those are included in your expenses that's great to get $400-$500 cash flow on a duplex in your first investment. Do you have a pathway/process for getting a downpayment for your next deal to continue to scale once you have this duplex stabilized in a few months? Don't get me wrong, you need to stabilize this property first, but once you do start thinking about how to fund your next deal. Good Luck!

@Dylan Thinkers - I would agree with Jaycee. The margins on the deal seem a bit tight. Did you arrive at your ARV of the quad by looking at comps? Also, at 250-300k in total each unit renovation must be 60-70k. Do you think there is a way to decrease those costs? Overall, it would be great to be "all in" (acquisition and renovation) for 75-80% of ARV from the onset as you know there will be some issues/challenges that you'll have to contend with along the way. Good Luck!

@Mark Delosreyes - This is a great "portfolio theory" question you proposed. The answer is probably dependent upon what you're going to do with the cash you get from the refinance. For example, if you have a (much) larger project in mind that will take a large chunk of money to support, I would tend to take out as much to fund the new project plus renovations, reserves, etc.. Assuming that project will yield returns far greater than your interest rate on the refinance. I would also think about interest rates and your opinion on the future trajectory of rates. If you think rates will remain stable and/or increase the next few years I would tend to take out more money now, but if you think rates will decline I would take less money out now in the hopes of refinancing (at a lower rate) in the future. I would tend to lock in more money for longer period of time at higher LTVs when rates are lower and do the opposite when rates are higher. Not a direct answer, but hopefully some things to think about. Good Luck!