All Forum Posts by: Jeff Roth

Hi Evan in Cleveland, Ohio-

Congratulations on being ready to begin working toward your real estate investing goals!

You say you are young and have saved a good amount of capital and are interested in finding a property you can Buy, Rehab, Rent, Refinance, and Repeat.

You wonder where to start, where to look for deals, and any advice.

I would look for an investor friendly Realtor who also does what you want to do in your area as you said you want to be involved in the renovation work. You can find this Realtor looking at listed properties that look like they have been recently renovated, this forum, local real estate investor groups, and on Facebook groups for real estate investors in your area.

To Your Success!

Hi Scott from Austin, Tx-

Your comment about many strong people not having an easy past related to investor mindset has wisdom.

While I do think investors who are passionate will find a way to overcome obstacles and keep going, there is something to be said about there being no effective substitute for someone having to overcome unknown setbacks to get where they are at for their strength and character.

I do pray all investors find their way to success in real estate with a minimum of drama.

One way to do that is to borrow the wisdom gained from experience from a trusted mentor who has seen their fair share of mountains to overcome to get to where they are at.

Thanks for sharing!

To Your Success!

Hi Ying in Phoenix, Arizona-

Congratulations on having equity in your primary residence, a cashflow positive rental, and money to look for your next deal.

You like the BRRRR method or Buying, Rehabbing, Renting, Refinancing, and Repeating but are finding that more difficult to do by you and are considering out-of-state markets.

Agree, the Phoenix area is a great area to invest in BRRRRs if you can find the right opportunity.

However, if finding deals is more difficult there, there are several markets in Michigan with rent growth and appreciation where the BRRRR method still works.

They key to working out-of-state markets is the strength of your local team. Having an investor friendly Realtor that can help you find properties where you can add value and give you accurate after repair values is extremely helpful. Then, having a local property manager that can do the rehab work and manage the property after the rehab with a proven record of success is also very helpful.

We have partnerships with highly rated property managers in all of the markets we serve.

To Your Success!

Hi Natalie from Detroit, MI-

You asked about mitigating risks when owning investment property in Detroit.

While no investment is risk free, you certainly can reduce risk by educating yourself and working with an experienced local team.

Probably the two most important people on that team are your local investor friendly Realtor and property manager.

They will make sure you are buying in the best areas and make your investment as passive as possible. The property manager will have their own maintenance team or network of preferred contractors to make sure your property is maintained and tenant turnover at a minimum.

To Your Success!

Hi Lawrence-

You are a 26 year old father of 4 and want to grow a large portfolio for retirement by 50 or 55 and want to be able to travel and help your kids.

You have a well paying job with a 401K with no company match and wonder where to put your money.

Congratulations on looking at your investment options at a young age.

Personally, I would look at investing in duplexes in a place like Lansing, MI where you can buy a decent duplex for around $130,000 with room to improve the property and rents. This will give you a strong cashflow position and in a short period of time you can pull out equity and go and buy the next duplex the same way. We have an excellent property manager there to keep your investment as passive as possible.

Doing this consistently over time will have your properties going up in value, debt going down, and rents increasing to help you achieve your goals-not to mention the tax savings along the way.

To Your Success!

Hi Sendil from Gainesville, Fl-

You are looking for someone to help you with a cost segregation study to save on your taxes.

I have many physician clients buying short term rentals and using this strategy for example and I recommend they use Maven Cost Segregation Tax Advisors.

They are active on Bigger Pockets. They also have 17 5-star reviews on their Google business profile.

They are located in Sterling Heights, Michigan but can help anywhere.

Ask for Sean Graham. He can answer all your questions.

To Your Success!

Hi Stephen from Detroit, MI-

Congratulations on having a house you owe $122,000 which recently appraised for $242,000.

Your questions is should you get a Home Equity Loan or just sell it. You are interested in having a new personal home as a goal. The answer depends on your ultimate goals and risk tolerance.

You say your current mortgage is at 2.875%. The mortgage is an asset and you are not likely to get that rate again anytime soon, if at all, in our lifetimes.

If your current house cashflows as you think it will, you might want to get that Home Equity Loan for the downpayment on a new house and use a property manager to help manage your prior home.

Your future self may thank you as you will have two houses appreciating, rent growth, and tax benefits.

If you need a property manager recommendation in the area, I can share that with you as I am not far in Ann Arbor and have Detroit area investors I help.

To Your Success!

Hi Scott from Detroit, MI-

Congratulations on having the cash or a line of credit to pay for a 2 bed/1 bath rental for 58K and you wonder which would be better to use and are leaning toward paying cash.

I think that is a great plan as the interest rate on your HELOC is currently 8.99% for you.

There is also something to be said for stacking a few paid off houses for cashflow compared to using leverage.

To Your Success!

Hi Edd in Central Oregon-

You asked if there are any benefits to the landlord going month-to-month on a lease for a tenant.

As you rightly point out, this does give the tenants more flexibility.

Benefits to the landlord include more flexibility as well if you intend to sell your property or if there are regulations on long term leases in your area that are problematic or you wish to avoid such potential mandates. Landlords can also charge more monthly for a month-to-month lease.

To your success!

Hi Jamie in Tulsa, Oklahoma-

You have kept your rents the same for some time but with property taxes and insurance going up you wonder if you should be increasing rents at lease renewal regularly.

However, you also are sensitive to the tenants and would like to keep them as long as possible.

This is a very common issue for landlords, especially for tenants that have been good tenants for a long time, to have rents below market rents.

I do think for your sake and the tenants, you have to be able to pay the bills for the property. Rent increases are a normal course of business but also should factor market rents in the area and if other landlords locally are able to increase rents at this time--especially if you are at market rents which it sounds like you may not be.

To Your Success!