All Forum Posts by: Jon Kelly

I generally agree with the post. I think it's also easier to say given the current market. Whether you were investing in "cashflow" or "appreciation" the past 4 years, you likely did well. Most prices doubled (some tripled). 

There's not many "wrong" strategies, other than waiting for the perfect scenario. 

@Brad Scott either approach will work. 

I'm of the mindset to keep it simple in the beginning. Once you have 10-20+ properties then you can consider alternative strategies. 

Simple LLC and umbrella insurance policy works for most.

@Joshua Arsenault why did you buy the property in the first place? I assume you had some real estate / passive income related goals. 

Seems way too early to cash-out and put it towards a larger primary residence. 

Keep the property and keep your real estate investing dream alive

@Matt W. why not trade some singles into 4-units, then your 4-units into 16-units, etc.... 

instead of trading 70 single family homes for a 200-unit property you will be trading two 50-unit properties into one 200-unit building

@Katherine Roberts don't be afraid to offer below asking. What's the worst they can say? No? 

If they say no then you move on to the next property. 

Someone once said if you aren't embarrassed by your offer then it's not low enough. 

Of course, it's a more competitive market so lowball offers are becoming less common. But, if a property has been sitting don't be afraid to submit a low offer. 

@Alazar Wubet depending on the size of the job I would call references. 

Ideally, you have a referral to this contractor. If you don't have a referral then make sure you speak to a human about their work. 

Size of the project matters. If it's a ~$3k job then you can't spend too much time on due diligence. If it's a $10k job then I'd want to be more certain. 

@Hector Garza I applaud you for thinking deeply about this. The first step in realizing your dreams is to have a vision.

You need to be more specific with what you want. "building long-term financial wealth for my family," is very nice but it's not specific. What does financial wealth mean? $X per month in profit, $X in net worth, $X in assets owned, etc.? 

Be A LOT more aggressive. If your current plan is to start investing in real estate (or building long-term financial wealth) by 2029 you will never do it. There's way too many variables between now and 2029. What if you have more kids? What if you want to pay for your kids education? What if you get fired? What if there's another pandemic?  

I would pay down any debt over 5%. Anything less than 5% will not hold you back. Find a way to accelerate your timeline to buying real estate. What are the quickest ways for you (or your wife) to increase your income or decrease your expenses? Do this ASAP. 

@Stephanie Joe why does your DTI matter that much? Take the loan for property #2. Then, refi cashout of property #1. Even if that negatively impacts your DTI, who cares?

You'll have funds for your first BRRRR project and you'll be off and running.

If DTI is ever an issue you can look towards commercial (investor) loans. Reach out to private lenders for fix and flip or DSCR loans.

@Alex Lin just factor in the rehab + carrying costs (taxes, insurance, utilities, etc) from the day it was purchased

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