All Forum Posts by: Jaron Walling

@David Tuma Are you using a VA loan? Hopefully you're taking advantage of it.

You can shop around for different lenders and lock in a rate for 60 days, but it doesn't really matter if you qualify for the VA. 

VA loans offer several advantages, including no down payment, no PMI, and often lower interest rates compared to conventional loans. That depends on you DTI, credit, etc.

As a new home owner at 21 y/o you're basically asking about personal finance. House hacking at 21 won't change you're life, but it's a good step in the right direction! Getting smart with your $$$, living below your means, following a budget, and buying rentals at that age is extremely powerful. If you share some of the numbers (PP, rents, location, property condition, etc.) you'll get more advice. 

@Ryan Porter Speaking of striking out on the MLS... are you spending $$$ on marketing for off market leads? Working with wholesalers? Or simply doing a combination to find opportunities?

We're striking out constantly and it's probably because we're not throwing money at any marketing. Sales is not my strength. Wholesaling RE has not been a personal goal. We're BRRRR investors so it's been tough.

We ran into a somewhat similar situation when screening a tenant a few years ago. The previous apartment complex acted like they needed to verify who we were before releasing any information on the applicate (our tenant). It was pretty frustrating. Why would someone waste time confirming rental payments and payment history for an apartment they don't even live in?? It's not like we requested a unit #, or other personal information. We already had most of those things from our application. 

"I called the HR department of the healthcare organization to report my concerns and ask for verification, but they refused to confirm or deny the applicant’s employment." - Hot take; this is pure laziness from an employee or corporate BS that forces them to give this response. Hospitals are incredibly frustrating to deal with. 

Great call choosing the next applicate. The first applicate lied about stuff. That's a red flag leading to future issues. 

@Dominik Geib The fact you're asking these questions, learning, and trying to avoid pitfalls is really important. Most people don't and impulse there way through life and never get ahead. Dollars come in and every dollar goes out. You and your fiancé should read books, listen to podcasts, make educated choices, follow a budget (highly recommend Quicken Simplifi app!), and take things slow.

@Wendell Godard That's quite a change! Congrats on the purchase. We just got back from a family vacation to Myrtle Beach. We love the Carolinas. 

So it's a LTR until you decide to sell the current home and the move there?

@Wendell Godard From an investment prospective did you view this townhome as a storage of cash (glorified savings), cash-flow to supplement income, or a combination? 

@Blake Bailey "but my main goal since about 2017 has been to eventually become a full time investor." - If you have a paid off primary and $65k cash so why haven't you jumped into a deal?? Who or what's stopping you? What's your why for REI?

You live in Nashville with paid off property. You're already killing it man. That market has exploded with growth and appreciation. You just need to implement strategy, leverage (HELOC?), and then find/buy/create a deal you can't pass up.

If it was easy everyone would do it. You already solved the money step. 

You would need to remodel it into a 3/2 (possible with 1400sqft.) and keep the one or two car garage to achieve an ARV of $340k. That ARV is approaching more desirable locations.

@Kristen Franks What neighborhood is this located? I lived on the east side for 6 years and know the areas. 

It's unlikely the ARV is that high unless it's very near east side and a total gut remodel. Removing the garage can actually hurt your ARV in some cases because Indy is very car centric.

@Amier Tutie You're in a great position! There's plenty of ways to pull equity but most cost you money. It depends on your long term goals with REI. You didn't say anything about selling but have you thought about a 1031 exchange or selling a dud property (if you have one) to capitalize on the next opportunity? Very few investors hold every property forever.

If you don't sell the better option is DSCR loans. The rates are great and it's based on the performance of the property. Not you personally. You can close a DSCR loan quick and seasoning is <3 months for most lenders I see.

I like the saying "just because you can doesn't mean you should". We sold a SFH two years ago with a 3% fixed rate. The future capex and potential for never ending "repairs" as a rental wasn't worth the cash-flow. We used the equity for a DP and bought a way newer property.

Think about your equity position vs. cash-flow. Maybe you choose to sell something and buy a duplex or tri? That can to get you to 10 doors way faster than buying SFH. That's basically where my wife and I are right now. We're aiming for duplexes, or flips for some quick money.