All Forum Posts by: Jody Sperling

Dallas is a great market and you can make money on rentals there or anywhere you buy. The questions you have to ask are what perspective, when and how:

What perspective: Do you need cash now or cash in the future? Rentals make money because they grow your net worth over time.

When do you need the money: If you need money now, you have to find under-market deals that you can add value to immediately through improvement. Then you can refinance your purchase price out and immediately start making money.

How do you do it: Network for property not listed on the MLS for the fastest cash flow, or study the path of progress. The latter idea can be risky, but find experts in that area and it may really cash in quickly for you.

You are right that Austin is among the hardest markets, as will most markets in Texas be, but the appeal isn't going anywhere any time soon. Best of luck!

There's nothing wrong with renting. Don't buy in California. Keep your original plan and buy a third rental where the numbers make sense: Omaha, NE; Kansas City, MO; Indiana, Ohio, somewhere where the housing is decently priced and rent can cashflow.

While you live in San Diego, rent your dwelling. It might sound like a horrible experience, but try to find a family in your situation who might want to share the cost of a rental that could fit both families' needs, keeping overall costs even lower.

But even if you rent a small place instead of buying California real estate, at least there's no cap ex threats or burden on your cashflow. Best of luck!

Start with local banks. I work with Dundee bank. Tons of other investors in town do as well. I also have one property through Omaha Federal Credit Union. They are a great option as well. Don't bank with the national guys.

It is true that if you work with local banks, you're likely to need a 5% deposit on a personal residence, but you also get a host of other benefits that build over the years by working local. That relationship will more than pay off as you grow your portfolio.

Hard money, is fine too, if you can find a multifamily property in need of rehab, but for it to work out, you need to make sure there's enough meat between the buy and refinance that you can pay back the hard money. Hard money is never a long-term option, so there has to be arbitrage to make it work.

Best of luck!

I don't know much about new-construction apartments, but it's clear you researched, read and discussed the investing process, and so I thought I'd just chime in to say dive in. Run the numbers and be sure you won't go "backwards unless." I even prefer to avoid "backwards if" because the market in that area could step back in value, as it could in all markets.

Don't wait until you feel ready, or you won't make the investment. Most people who do this jump in with a whole lot less knowledge than you seem to have. Sorry this is only a pep talk and not concrete advice!

 Ha! I wish. Things I learned: The house was built in the late 1800s. It had 7 layers of roofing overlaid. Two were metal, the rest asphalt or shake. We had a bit of framing where water had damaged the integrity of the structure, and the companies willing to bid all had to have commercial roofing experience because my house has a flat roof. Worse, still, I got it done when wood prices were at their absolute peak, so materials were stupid expensive.

I"m doing a live-in flip on a house outside of Omaha. Got this place for $32,580. But the roof cost me $33,000 to replace. We're about $75,000 in and mostly finished. Cosmetic stuff in the upstairs bedrooms. Afraid it won't sell for more than $120,000 though, so I have to be conscientious.

Depends how much profit and how badly you need the money. Recoup your costs and assess from there how much time, energy, and effort each of you made, as well as how long your father owned the property. 

If he lived there long enough to benefit from major appreciation, it would seem opportunistic of you to come in and do a bit of a remodel and take years of growing wealth, but my answer might be different if you were working with a stranger. Family is tough that way. Best of luck!

Hey, Terran, Welcome to BP. This is an amazing community, and you'll always find help when you need it. Basic advice for the forums would be, (1) research answers before asking questions because a lot of the basic stuff is asked daily and the folks who are here daily offering help stop answering the same questions. (2) Make questions as short and to the point as possible, as a lot of people do gravitate toward precision.

Otherwise, investing advice is this: The best time to buy an investment property was seven years ago. The next best time is today. Don't wait long. Get going ASAP. Best of luck!

If you want to succeed at Buy, Rehab, Rent, Refinance, Repeat investing, you want to get comfortable with private financing. Private financing is simple once you learn the ins and outs.

1) Meet and network with hard money lenders.

1a) Go to local REIAs and tell people there what you do and who you're looking for.

1b) Introduce yourself to the lenders and be kind, respectful and direct.

2) Use hard money to complete a few BRRRRs.

3) Use your success to find private lenders. They will offer better terms than hard money.

4) Complete a few BRRRRs with private money.

5) Use whatever money is available when needed to continue BRRRRing.

5) Congrats, now you'll likely have enough money in reserve to complete a few BRRRRs with your own, much cheaper cash. Keep building, and best of luck!

House hack. Buy what you can afford; list one room for rent; live in the rest. It may seem foreign in the beginning, and you might say, "I have children living with me sometimes, so I can't have tenants," but no excuse is worth losing out on wealth-building.

Be picky about your tenant and you'll not only have a great source of income to cover the mortgage, but you'll have someone who takes care of your property with you. It will solve every issue you raised in your financing question because you can still use your own money and a small private loan to get into a townhome, plus you have the renter from the earliest possible moment, as well as a primary residence for you, access to personal and commercial lending, and reduced expenses. Best of luck!