All Forum Posts by: Jaron Walling

You need boots on the ground (you?) to determine neighborhood classes. A lot of the popular markets have maps created showing class but I'd take caution using them. Some of them are outdated and don't reflect current trends. A handful of quality flips, BRRRR's, or new construction can transform a neighborhood quickly. No map is going to keep up.

It's not a black and white thing. There's always grey zones of A/B, B/C, or D/war zone like neighborhoods. Generally speaking when you find more owner occupied properties and less rentals you're in C+/B class. A class is 90-100% owner occupied properties. Price to rent ratio rarely works in A class areas unless you go STR.

If it's a true B class expect to pay for it. Small multi-family is hot right now due to house-hacking (low barrier of entry), and future cash-flow. 

You either have verified income and meet the other requirements, or don't. Red flag. 

If you're this far along I'd call the employer anyways. 

Make sure it's legit by asking a question a buddy couldn't answer quickly. Call a different number you found online associated with the same company, etc. If it's not a real job... next.

@David Lewis All aboard! It's a long train ride. Better buckle up.  

@Stacie Telles Assuming you took out a conventional mortgage on the property you won't be able to refinance for at least 12 months. At least now your tax basis is $220k ;-)  

What was the extent of the repairs? Generally speaking repairs don't add much value. If you remodeled, added a room, replaced a roof, painted, boosted the curb appeal, etc. that's a different story. If it costs you thousands to refinance it needs to be worth it. 

I wouldn't touch your current loan unless rates drop 1-2%. The odds of that happening in 2025 are pretty slim. Play the long game and hold onto that equity. 

@Nicholas A. Everyone does that a little when starting out but statically speaking spreading effort into multiple markets is not the best use of your time. Time is a valuable resource and "spending" it everywhere at once isn't worth the effort. You're better off focusing on specific markets, specific neighborhoods, analyzing numbers, and building an ideal buy [box]. Build connections with local professionals, talk to them in person, and value there time over yours. That's how you gain the information you need to AVOID MISTAKES. 

Look for a proven market and make it your backyard. 

For my family investing OOS is a big long term goal (most likely south with mountains), but it's never been the main plan. 

@Ethan A. We love our pets but at the end of the day pets are a luxury. The majority of landlords don't allow pets in there properties. The risk of property damage or a lawsuit from a dog bite is too high. 

Did you collect a pet deposit?

Did you find any prior knowledge (tenant screening) of pets moving in?

When was your last inspection?

If you had no knowledge and they broke the lease I'd issue a notice of non renewal, but give them the option to remove the cats. If they started with two cats, and you were fine with it, maybe allow it. You can compromise without loosing good paying tenants if they pay on time. 

Follow up with an inspection with the timeframe stated in the notice. Get all of the notices in writing and keep all text message/voicemails for your records. Follow your state regulations on notices but do everything you can to avoid an eviction. Nobody wins in that situation. 

Best of luck. 

@Daniel Baker What do you mean by breaking even?? What's the cash-flow after expenses? What are the comps selling for (last 3-6 months)in the neighborhood?

You said you've owned the property for 8 years; that's like 2017 which was a prime time to buy. Unless you bought in D class, very low appreciation area, you should be sitting pretty. 

@Kane Spangler There's a since of pressure to build or buy RE in your post. I would slow down and think about your BUDGET, what you can get for $30k, and how you can increase your income. There's a post right above mine from a lender... there's always a lender offering $$$ even when people can't afford it. 

What can you sacrifice to achieve your goals without being overleveraged? That's the question that needs answered. Getting a mother-in-low to co-sign is not the answer. "Before borrowing money from a friend, decide which you need most". Having a co-signer doesn't feel like that at first, but you can't predict the future. It could negatively impact the relationship. 

I hope none of your family or friends were hurt during the floods. 

I bought my first house and got into REI for control, stability, and the opportunity to solve problems.

This sounds like the opposite of that. For those reasons.... I'm out. 

@Keith Angell What are your long term goals? Are you still working the 9-5 job or retired? You're very under leveraged compared to most investors trying to scale. You a big Dave Ramsey fan?

You have numerous funding options so pick your poison. Personally, I'd cash-out refinance into a 30 or 15 year loan. If rates come down (most likely not in 2025) you can refinance or just shovel cash-flow and pay it down quicker. Depends on strategy and long term goals with REI. Depends on which property you pull equity from. If you're hesitant to take on a long-term loan do the 15 yr. loan in your name because you'll get a best rate.

HELOC are great for short term lending. It makes sense for your new build but you'll have leverage something (fixed rate) to get out of that loan.

You're crushing it man. You basically own 3 paid for properties. We're trying to get our first rental property paid off with extra cash. Amortized loans... booo. Cheers.