All Forum Posts by: Jack B.

What you want and what you can afford are different things. It's like asking how to buy a Lamborghini with $100 down payment. You can't and shouldn't because you can't afford it. You need to have more reasonable expectations and go smaller. You can try to find a place to take over payments, owner financing, etc. But realistically if you can't put 25% down on a deal you're over leveraged and out of your depth, taking on too much risk. Circa 2008 crash.

 A lot of headache. What is the purpose of buying them in all different cities? It makes no sense. You now have to manage 10 different property managers in 10 different cities, instead of 1 PM for 1 city with 10 rentals.

You don't have enough data to really make a decision in your post, but I'd go with passive rentals over ABNB personally. Long term tenants and multi family don't go together. Turnover is higher than single family. You need more research.

 The fact that you are unwilling to buy properties due to what you call insane prices and them having doubled in value is insane. Had you bought despite what you call insane prices you would have doubled your money. 150K is not an insane price, you would still pay half a mil where I'm at for a distressed property. To see a property go from 75K to 150K in how many years? That's a good play. Sitting on the sidelines doesn't make you money, it just makes the gains you could have had more apparent.

 It's more risky. They can more easily call the loan. The rate can be variable. It's typically higher than a mortgage rate is, by a significant margin. There is no demand feature on conventional financing that is available, unless you're in default. The bank can call a heloc much more easily. Don't be Dave Ramsey. They called his loans back when they had demand notes. Lost it all, though he did come back strong.

 Talk to small banks and lenders in your area. See what their criteria is. I think you will have a hard time at 18 buying multi family out of the gate with little credit, income or down payment but it CAN be done if you're persistent and ask around a lot. Personally I would only go with reputable conventional financing. Buy a four plex out of the gate after you build your credit and have some income and down payment. If you find the barrier to entry to that too high, try a condo to start to build equity.

 Start building credit at 18. Get your real estate license. Save up to buy a house. Get a check when you do buy the house because you're a realtor. You also learned on other peoples dime working as one. Don't go crazy, keep it affordable to start. Do that then come back for more. This should take you a couple years.

 If I HAD to, I would avoid non residential real estate, bonds. I would also avoid gold, as it's not a great investment, barely above inflation in most cases over long periods. Debt is a better hedge against inflation. Debt is the new money. The asset type I would pursue would be a heavy cash position so I can buy deals at a discount in the event of a crash. I would do more of what made me my money, don't go out of your area of success, unless it's money you can afford to lose.

The barrier to entry for rentals is higher. You will usually need 25% down for conventional financing. You can get into a primary residence with FHA for 3.5% down. Let the property appreciate a year or two, cash out refinance (never take a Home Equity Line of Credit) and buy a rental with the money from the primary residence you cashed out. Repeat. That will make you far more money than cash flow. I made 500K in the last 9 months in appreciation alone on 6 properties. The cash flow was barely in the low ten figures. Which is great for tax reasons.

 Better yet, since you're only buying 3.5% down, get a bigger property, like a duplex or four-plex. The rents will let you live there for free, thus increasing your ability to save far above what little cash flow you'd get from a rental in this market. Another reason is that you shouldn't be investing if you don't have your basics covered. It's like gambling your paid off house away on a penny stock and losing it all. A paid off house was a huge leg up, blowing it on speculative investments is not the way to go. Get the basics of shelter down first before you invest.

 I've had the EXACT same interactions with these section 8 losers. They are truly a special breed propped up by socialist politicians buying votes from retards.