All Forum Posts by: Jordan Mummau

@Kyle Brown the eviction process becomes increasingly expensive the longer you wait to take action. The legal process is not very expensive at all, unless you involve an attorney. Most leases include that a tenant is responsible for legal fees incurred but you’ll never see those, even if a judgement is granted. It gets expensive if you wait because each month that goes by is lost rent and it will take months. The best case scenario is they get your initial letter and work with you directly to just vacate the property with no further action or rent due. That doesn’t always work but if you can get them to agree in writing to terminate the lease and vacate with no further legal or financial penalty, sometimes that does the trick and is much easier process for both parties.

@Dylan Smith First, I think you're off to a great start just thinking about how real estate can be an asset to you, either now or down the road. I operate a medical device business (my day job) and work with a lot of physicians every day so while I'm certainly not an MD myself, I work with a lot of them every day. There's a ton of opportunity for you, especially during residency. Most residents need housing. A great way to house hack! If you can figure out a way to buy a duplex or triplex while in residency, I guarantee you'll have your mortgage paid for + some just by the people in your inner circle. Especially if it's your primary residence, you can get loans for as little as 3% down on properties 4 units or less. By the time you end residency and possibly pursue fellowship, you'll have a nice bit of equity built in. At that time you could rent the entire property when you leave or 1031 exchange to your next location. 

@Ryan Keenan I had this same question when I was getting started. I bought 5 properties in my first year an a half. They were cash flowing great but my lender (small community bank) told me that they were going to start pushing me commercial. I wanted to keep the 30yr residential loans and looked for alternatives. I ended up partnering with a local credit union that agreed to finance me residential as long as I gave them my next couple deals. They're keeping them "in-house". Shop around. I spoke with at least 10 different local banks until I found my "partner". It's difficult to get everything you want out of one bank. I have HELOC's through one bank, commercial lines of credit through another, mortgages with three different banks and standard bank accounts through another. It's a lot to keep track of but if you take the time to shop your requests, someone will come through with a financial product you can benefit from.

I love use the BRRRR strategy exactly for this reason. This property actually cost me nothing out of pocket when it was refinanced.

Investment Info:

Single-family residence buy & hold investment in Annville.

Purchase price: $60,000
Cash invested: $1

BRRRR Student Housing Property

Investment Info:

Single-family residence buy & hold investment in Annville.

Purchase price: $65,000
Cash invested: $1

BRRRR Student Housing Rental

Investment Info:

Single-family residence buy & hold investment in Annville.

Purchase price: $72,000
Cash invested: $5,000

Student Housing

How did you finance this deal?

Paid with cash, flipped to home equity loan with little down

Investment Info:

Single-family residence fix & flip investment in Annville.

Purchase price: $125,000
Cash invested: $30,000
Sale price: $205,000

My wife and I bought our first home at public auction. We stayed two years and flipped it. We did do a bridge loan to get into our second property also bought at auction.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Annville.

Purchase price: $75,000
Cash invested: $1
Sale price: $100,000

Two unit property in college town. Decent cash flow but due to the high market values in 2019, I decided to sell as the cash realized upon sale could be put to a higher yielding property

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Annville.

Purchase price: $145,000
Cash invested: $36,000

Two unit property with decent cash flow. Purchased traditionally at 11% cap.