All Forum Posts by: Clayton Plank

@Jordan Grimstad, I have seen some great success with the advice @Kyle Mccaw stated. Maybe find another investor interested in the same area and go in and take control of the area. This may take some time and work but once you control a street you can began to change the area and start increasing not only your house values but also your rents, 

@Nick Vehr, It seems you have run all the numbers. With a duplex there are not much more expenses than with a single family. It's once you go into 5 or more units and switch to the commercial side that the expenses vary. With my multi-families I pay for the mowing and such as it is hard to get different families on the same time line and it seemed that no one ever mowed around the same time so i would have one side nice and mowed and the other side not and then it would switch in a week or so. 

@Jordan Grimstad, I tend to stay away from these areas as they tend to be more work than i have time for as a work a full time job and manage my own rentals. I do know several investors in my area though that have done very well with these areas. They buy them cheap and fix them up and place HUD tenants in them. The rate on return for them seemed to be very strong. Most of these investors use property management and do not self manage though.

@Bradley Snyder, Just look at what the numbers will be in the end when you refinance and work backwards from there. This will let you know if the property is going to work. Also it will let you know where your purchase price should be to make it work.

@Pierre Alvarez, Biggerpockets podcasts, Forums. Not much to it. Find and analyze property, purchase, rehab, refinance, and then repeat for your next one.

@Felipe Guerra, What is your end goal? If you were only going to sale for properties with the same monthly cash flow what is your motive to sell? If you were going to sell and purchase a larger asset (IE apartments) that would increase your cash flow then I would say yes. But everyone's needs and wants are different. Whether you want to sell or not depends on what your goals are.

@Bradley Snyder, Yes it would raise your mortgage payment as you are raising the mortgage to draw out the equity. I would look at the profits/cash flow of the current house and not into the future of your next house. Run the numbers on your first house with the increased mortgage to make sure your profits are there after the mortgage increase before you purchase the property if you plan on using the BRRR strategy. If the cash flow was no there then I would not purchase that property.

I use my LLC's name as they manage my units.

@Michael Hicks I totally agree. @Evan Cruz you could also look at working at a property management company or becoming an assistant for someone that is rock and rolling in the real estate world. This would allow you to learn while making the money and get good hands on experience without having to pay with your own money.

@Sean W., If you own your house outright the HELOC sounds like a great idea. Deciding on if you should only focus on Multi Famil vs SFH's is totally up to you. Both have positives and negatives. Search the forums as there are several posts regarding the goods and bads of each. I purchased my first rental using a HELOC on my personal. I would then use the BRRR method and pay the HELOC off until I found another property to purchase.