All Forum Posts by: Jose M.

Hi, I’m a newbie real estate investor. I have a full time job, live in Texas and currently own 2 small multifamily properties and currently looking for a 3rd one. My current interest is buy and hold, and mostly multifamily. What’s my goal ? Mainly I do it thinking about financial independence or at least partially and thinking about my retirement. 

I’m kind of confused on what should be my overall real estate strategy. I realize there are many different ways to do it but I figured I should ask the expert or experienced guys from BP... because I haven’t been able to find an answer by myself

-BRRRR. Many people say this is the best way. I find it a little risky, underestimating the repair expenses, overestimating the ARV, Risk of over leverage, etc.

-Debt snowball. I’ve read this in a few websites. You buy 4 properties with a loan, 25% down or something. The cash flow that is left every year you reinvest it paying extra to the principal in each property. After property #4, you don’t buy a #5. Instead you use all your savings of that year, etc to pay off property #1. So you are back to 3 loans and then buy #5, going back to 4 loans. The idea is you never have more than 4 loans. In other websites they even say, don’t keep buying more properties, you may just stick to 4 or whatever your goal is and pay them off one by one. But then I thought you might lose the leverage factor, using other people money using this... and they say it might be slower which I don’t fully understand cause owning them free and clear getting that much cash flow this soon instead of 15-20 years from now and owning fewer properties does not sound like a bad idea, less work or “headaches” I guess. But I realize it would be thanks to money out of my pocket instead of using equity paid by tenants. Plus I might lose tax write offs, right?.

-Any other better strategies you may suggest.

Thank you guys in advance for all your insights and replies. 

Hi, I’m a newbie real estate investor, interested in buy and hold, specially small multifamily properties. I have been thinking in strategies to grow these real estate investments but Am struggling.

What's the best way to grow one's little real estate portfolio? Follow the BRRRR strategy, pyramid or something hybrid?

I’m a little confused, I like the idea of keeping the properties as long as I can so when they are paid off, it would be nice to have that cash flow for financial freedom and all that.

So wouldn’t like to sell unless really needed.

On the other hand, the refinancing aspect: I’ve been told that if you do that, your mortgage payments will increase and cash flow will go down.

For the BRRRR: If you put 25% down from your savings, getting a 6% rate (let's say), rehab, rent, refinance and repeat, does it work the same/better or worse than if you buy it with a hard money lender (getting 9-10% rate I guess) instead of your money?

Any light on the topic would be appreciated...

My initial approach idea was to simply save $, buy putting 20-25% down, rent it and hold it. But I know this approach is very slow, so would like a better alternative.

Thanks guys

I thought you had to live in that property for a while (residence) with the FHA loans, as a requirement. Maybe the most experienced people can clarify that

about the mortgage: I thought for an investment/rental residential property, the interest rate was around 7%. But you can get it at 4%, may I ask what bank? 

@Account Closed thanks. I sent you a PM

Yes, that helps a lot. Thanks. We live close (same zip code). 

if I may ask Laci Jacques, having 2 houses in EP...

I've heard divided opinions about this. What area or specifically what zip code do you recommend for this buy and hold approach? Any advice is appreciated

thanks guys. I'll definitely pay attention to the taxes. Let's keep in touch. 

Hi, I'm new to Real estate investing and kind of new at BP forum. I've done some homework reading several RE books and reading BP, including the podcast. 

I live in El Paso, TX and I'm interested in investing on rental houses (single family or multifamily) in El Paso, TX or Las Cruces, NM. Probably will do the Buy and Hold approach. I would love to meet any real estate investors in El Paso/Las Cruces area so I can learn from them and obviously work with them in the future. Contact me. Thanks. 

I know there are 2 real estate investors clubs/associations in El Paso, I'll have to join them too.