Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Jaron Walling

Jaron Walling has started 39 posts and replied 4040 times.

Post: Cashing out IRA to buy rental properties.

Jaron Walling
Pro Member
Posted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 4,091
  • Votes 3,773

Cash out your IRA, take a Vegas vacation, and throw it all on black. Be a man.

Post: What problems do you face?

Jaron Walling
Pro Member
Posted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 4,091
  • Votes 3,773

@Justin Goodrich I can speak for a lot of investors and say our biggest problems are out of our control. It's a combo of low housing supply, higher interest rates vs. seller expectation, and a poor economic outlook for the country.

As an investor with a few rentals it's like like the parking brake is stuck on. We can't find the next opportunity, have little economy of scale, so I'm forced to keep our reserves high.

Post: Pulling out equity will kill my cash flow but I want to grow my portfolio

Jaron Walling
Pro Member
Posted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 4,091
  • Votes 3,773

@John Clark "So it all starts with yourself and your spouse first. What quality of life (stress) are you willing to trade for more money?" - This exactly! 

We sold a house with a low rate that would have cash-flowed really well because I saw the future deferred maintenance. I was burned out on renovating the property. As a rental the stress would have killed me. 

Post: Off Market Buyer/Seller Agent Commission -

Jaron Walling
Pro Member
Posted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 4,091
  • Votes 3,773

@Dillon Onsager Where's the duplex located? I could be an interested buyer. 

From a commissions standpoint it depends on the agent. How many investor/buyers does he know? You're still leveraging his network/connections/professional experience. It's still a "listing" in his mind regardless if it hits the MLS. Depending on the condition you'll command a better price on the MLS vs. off market. If you list it and sell it for more vs. selling off market for less but no commission what's the point? It really depends on the condition of the property and your relationship with the agent.

We bought an off market deal years ago and hired an agent to push paperwork. I paid a flat fee of $400 to get a sales contract drawn up. I found the deal, negotiated the price with the seller, and did the work to get the deal done. The agent "worked" for 2 hours at the most including drive time to the closing. Cheers. 

Post: Pulling out equity will kill my cash flow but I want to grow my portfolio

Jaron Walling
Pro Member
Posted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 4,091
  • Votes 3,773

@Roy Gottesdiener The answer to question is it depends... on your market, strategy to buy RE, long term goals, and interest rates on your current properties. If your properties are bread and butter, cash-flow kings, with low rates, it probably makes no sense to cash out refinance. 

The best course of action is probably a HELOC. Search the forums, asking around, and talk to some lenders. It's harder to find for investment properties but it's not impossible. Some refinance into a portfolio loan which is a mortgage that a lender keeps instead of selling it on the secondary market. Lenders set their own terms which can be more favorable to investors with a lot of properties.

Post: Can someone guide me through the first step of analysis

Jaron Walling
Pro Member
Posted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 4,091
  • Votes 3,773

@Justin Jefferson These forums are a free REI education. Take advantage of it, search old posts (learn from history), and read as much as possible because that's how you get unstuck and out of analysis paralysis. 

Like @Bruce Woodruff said you have to establish your goals and "why" REI or homeownership should be in your life. Owning RE isn't for everyone. There's zero shame in that. This market is challenging. People get wealthy all the time doing other things. There are numerous paths to wealth in this country; they can't all align with your goals. Don't let it discourage you.

Sometimes you have to jump. If you're financially stable, have an emergency fund, and have a buy [box] get into the trending C class neighborhoods and buy value. Buy a house walking distance from ____. Buy something close to parks, nature, trails, or outdoor venues. Buy a property you could live in and be proud to own. Ann Arbor is a great market. Grand Rapids is a great market (we just vacationed here and loved it!). Everyone is talking about Detroit lately. 

You gave yourself 4 years?? You should 5x that number. You could grow a portfolio but will it be sustainable? Will you be over leveraged and broke? My wife and think about REI in 5 year chunks. We don't rentals we wouldn't own for 5 years. We rent and treat our tenants great expecting them to stay for 5 years. The path is way longer than you think.

Post: Buying Home from Auctions?

Jaron Walling
Pro Member
Posted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 4,091
  • Votes 3,773

This question seem pretty naïve for someone that's flipped about 30 houses. 

The answer is no. The auctions are just as dry as the MLS and wholesaler deals. What ever you're doing to find/buy/create deals is working. Keep doing it.

PS; What ever I'm doing isn't working because we haven't bought anything. 

Post: Wanting to retire with a few cabins in the Western NC mountains.

Jaron Walling
Pro Member
Posted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 4,091
  • Votes 3,773

@John Dallas Nice! I don't think that's overly optimistic at all. Who said you need to build all 6 cabins at once? Build 2 or 3, get them running, collect some cash-flow, and see how the business goes. That gives you options to expand, hold, or sell land if the income isn't there. 

That's my two cents. We love North Carolina but we're 20 years from the retirement dream. 

Post: Wanting to retire with a few cabins in the Western NC mountains.

Jaron Walling
Pro Member
Posted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 4,091
  • Votes 3,773

Sell the Florida house. Unless you're up for another challenge holding and renting creates headaches and PM "fun" you don't have time for. 

Follow your dream in North Carolina. Maybe you're in limbo renting for a year while the primary residence gets built. Imo it's still better than operating an OOS, STR, at 60 years old.

Post: Title: Sell or Rent? Advice Needed on Historic Home in Northern Virginia

Jaron Walling
Pro Member
Posted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 4,091
  • Votes 3,773

@Travis A. There's only a few questions you need to answer to come up with the best option. 

1. When you bought this property did you intend to rent it out in the future?

2. Do you plan to move back to the states or potentially live in this property again?

3. Does it cash-flow as a rental? STR>MTR>LTR... Generally speaking high priced RE doesn't make sense for LTR.

If the answer is yes to any of those questions you have come to terms with renting a high cost, high quality property. You have expect the unexpected. Tenants will not treat this property like you do. Good PM is hard to find. If you have deferred maintenance this will be future headache and a phone call from a PM company. 

Don't fall in love with the interest rate. My wife and I were in same situation 2 years ago. Only difference was the location and value of the property. I had 3.5% rate, did a lot remodeling and heavy lifting, and decided to sell due to the 2/5 capital gains exclusion. In you're case you're looking a $500k deducted from capital gains. That's a massive savings! Rent out your property and stay abroad long enough and you'll loose those savings forever. Objectively look at your property as STR>MTR>LTR, run the numbers, and see if it cash-flows. If you're negative and looking at potential deferred maintenance I'd sale it and enjoy the memories.