All Forum Posts by: Lotus Eli

When deciding between investing in properties that generate immediate cash flow versus those with higher appreciation potential, it largely depends on your long-term financial goals and risk tolerance.

Cash Flow Properties:

Pros: These properties generate consistent rental income, which can be used to cover expenses and potentially provide a steady stream of passive income. This approach can be particularly beneficial if you want to reinvest the income or use it to offset other taxable income.

Cons: Properties with lower purchase prices may be in less desirable neighborhoods, which could mean slower appreciation and potentially higher maintenance costs.

Appreciation Properties:

Pros: Investing in more expensive properties in better neighborhoods can lead to significant appreciation over time. This strategy can result in substantial equity gains, which can be leveraged for future investments. Additionally, you can benefit from tax deductions related to property depreciation and other expenses.

Cons: These properties might not generate positive cash flow initially, and you may need to cover any shortfalls out of pocket. This approach requires patience and a higher risk tolerance, as the return on investment is realized over a longer period.

Ultimately, if you don’t rely on cash flow for income, investing in higher-priced properties with better appreciation potential might be more advantageous in the long run. This strategy can offer greater tax benefits and higher overall returns through property value increases.

I pray this helped a bit!

Getting a HELOC without a full appraisal can be tricky, but there are a few ways it might be possible, especially if you've added significant value to your property.

Showing Recent Home Improvements : Providing documentation of recent home improvements and their costs might convince a lender to waive the full appraisal.

High Equity : If you have a significant amount of equity in your home, lenders might be more flexible with appraisal requirements.

Streamlined HELOC Programs : Some lenders offer streamlined or fast-track HELOC programs that don't require a full appraisal. It's worth checking with your current mortgage lender, as they might offer these options to existing customers.

Smaller Loan Amounts: For smaller HELOC amounts, lenders might be more flexible and not require a full appraisal. If the HELOC amount you're requesting is relatively low (often below $100,000), lenders might waive the full appraisal.

Drive-By Appraisal : Instead of a full interior inspection, a drive-by appraisal involves the appraiser evaluating the exterior of the property only.

Desktop Appraisal : This type of appraisal is conducted remotely using data and photos provided by the homeowner or real estate agents.

Based on the little knowledge that I have about stuff like this it sounds like you need to connect with existing lenders in your network or find new lenders in your network that have programs aligned with your goals. It’s always a good idea to shop around and ask different lenders about their specific requirements and options. Some lenders offer unique solutions and programs for your specific situation. I pray this helps or provided a bit of guidance. 

I am glad I could help , seriously lol ! 

Here are some helpful links!

https://www.rocketmortgage.com/learn/brrrr

I know this may sound simple and unorthodox, but I think you should try to BRRRR as much as possible. By using the BRRRR strategy, you only need to put down money once. After that initial down payment, the bank will basically be financing your investments. You'd buy an off-market, distressed property, fix it up, rent it out, refinance it, collect your money from the refinance, and repeat the process. This way, you only need to invest your profits once.

Overall, I don’t think you should keep buying more properties and making down payments repeatedly. That approach involves a lot of work and spending, and there are better strategies to utilize. By BRRRRing, you can achieve your goal of acquiring four houses with minimal effort and financial strain, allowing you to shift from buying to paying them off. Plus, you’d probably reach your goals faster with that plan of attack if executed properly. I hope this provides some value to you.

Lotus

Hey Grant,

I co-lived in Estes Park and several other places during a travel mission I undertook as part of a personal journey to get more in touch with myself. Co-living investors make a significant profit. For example, if the typical rent per unit is $1,500 (3bd 2ba), my landlord at the time would have one unit with three rooms and four people within the unit (one person per room and one room with two people), each paying around $500. The people with single rooms even paid a bit more. Ultimately, he was making $2,100+ a month per unit! He ensured that the structure, HVAC, plumbing, and electricity were well-maintained, and rarely had anyone coming in for maintenance fixes. If there were any, they were minimal, meaning not much maintenance was needed. He had about 10+ units, and when I tell you he was making bank, he was making bank! 20K a month and he had several buildings!

In all, when you invest in co-living properties, you have the opportunity to double, and depending on your location and how you structure your investment, potentially triple your income per month! I have a bit of experience with co-living investors, having been involved in several co-living investments for five years. I would love to give you more insight, and I really think you should consider obtaining at least one co-living investment, especially because you are in Estes Park, Grant! Throughout my investing journey, I definitely want a co-living investment!

Hey Jonathan!

I think you should try to expand to other markets as well. It seems like New Jersey is not aligning with your expectations, especially with the rental laws, difficulty finding deals, and the expensive market. I suggest doing some market analysis to find a market with good rental laws and lower property values, and try to invest virtually. Just make sure you build a good, solid, and competent local team in the area you choose to invest in. When you have a solid team, you can do deals anywhere you like without constant oversight.

One of my mentors does deals virtually in all fifty states. Although there is sometimes resistance, he rarely complains because he’s making so much money!

I hope this helps!

You should connect with me, Jonathan. I am an investor and Program/Project Analyst, currently dealing with something similar. Maybe we can provide value to one another and get out of this rut together.

Hi Katie , 

Thanks for responding ! I would love to connect with you and get more information! I have a project coming up this spring and might need your services! Can I message you so we can strategize how we can provide value to one another?

Thank you! I have been looking for local meet ups everything is a bit too far from me! 

However I am going to look again and explore "local masterminds" I have never heard of that!

Thank you so much for your help!

 Awesome! I'll reach out right now! Thank you!

Hey Sam!

I’m Lotus. I’m currently facing a similar situation and realized that I wasn’t using the right resources or consistently marketing to a single, optimized list. You might want to create a list of 50-100 prospective properties that meet your criteria using a tool like PropStream, optimize it, and then market to that list up to 30 times a quarter. When you’re pressed for time or eager to start a project and need things to move faster, consider outsourcing tasks for efficiency.

Overall, I think you should go back to the drawing board, build a specific and optimized list, and market to it consistently. Alternatively, you could work with a realtor; by providing value and building good rapport, you might get access to pocket listings. I hope this makes sense and helps you! I studied this in school, so I have some expertise in this area. I’d love to strategize with you if you’re open to it. Maybe we could work together to reach our deal goals!