All Forum Posts by: John Colagross

That should have said “between TWO upscale neighborhoods”.

My wife and I spent our anniversary at a resort in Georgia that set up like a neighborhood of small little apartment sized houses. There were sidewalks, fire pits, community games, etc and all I could think was how awesome it would be to have a setup like this of rental houses. I live in a city with a great school and houses sell as quick as they are listed. Rental houses and apartments stay packed here but there’s nothing like what I’m talking about in the area. There’s little to no land left to build on here either but a friend recently inherited a huge chunk of land, right on a main road , between to upscale subdivisions. He’s trying to decide whether to sell the land, subdivide it or what to do. It would be a perfect place to realize this dream and I would like to approach him with my idea but not sure how it “could look”. I’m a bank manager and have lots of contacts for investing in it but looking for ideas on how this could be done. I’m not sure what value I could bring other than some cash and this idea. I’m looking for ideas on how cost and profit percentages could be divided among investors. Since he owns the land, what percentage would be attractive to him to even consider this. I’m a newbie to real estate and this is definitely an idea that’s “too big for my britches” (excuse the southern slogan). It’s just an idea that keeps tugging at me.

@AJ H.

Thanks for the advice! I actually meant to say I planned to start with Triplex and Quad. I called it 3 to 4 unit rentals which made it sound like I only wanted 3or 4. My goal is passive income so I plan to rinse and repeat.😉

You mentioned “analyze, analyze, analyze”. Any tips on learning to do this?

John

@Bob Norton

My current rate is 3.85 on the 15. I'll be dropping it to 2.8 on the 30 and yes, it dropped to 2.25 right after I locked at 2.8 ha ha. I'm not sure if dropping the rate a point was really worth the closing cost but I wanted to lower my monthly payment to help, along with flipping cars, to save up for my first BRRRR. Thank you for the advice.

Thank you for the advice! So here is more info. I didn't mean to say my goal is 3-4 rentals. What I meant was my goal is to get triplex and quads. I figure I'll have to start with a single family or two to begin with though. I was advised to do nothing smaller than a tri if possible. I have made a few friends locally who have a lot of apartments and rentals and this was their advice. I like the HELOC idea. One other thing too. I am a Branch Manager at a large credit union. Our HELOCS are of course no payment until money is taken on the line.

I also have a $40k line of credit that I use to flip cars. It only has a 4% rate with an annual $250 fee. (It's with a local bank). My goal is to utilize the LOC to buy cars, flip them, save up capital until I find the first investment property. Since we are going through the refi though, I wondered about getting the cash out. I like the HELOC advice though. Thank you. Now I've got to find the deals.😊

Hello all. My name is John. I live in Muscle Shoals, AL. My wife and I are refinancing our home to take advantage of lower rate. We were on a 15 year fixed with the goal of paying it off by retirement (I'm 48). After reading Rich Dad Poor Dad, BRRRR, and listening to BP podcasts, I've had a paradigm shift in thinking and chose to do a 30 year on the refi with the goal of freeing up money with the goal of building capital. My goal is to purchase 3-4 unit rentals or SFR to start with. The rate for our refi is 2.85%. We are debt free except for mortgage. We owe 131k and house appraised last week for 194k. We haven't signed papers yet. My question is, should I just borrow the amount I owe and start saving OR, is it wiser to borrow as much as possible on our house? I hate to add back what I've already paid down since this is our home but, I do want to get started with rentals as soon as possible. Any advice is appreciated. Thank you, John