All Forum Posts by: Kaylee Walterbach

I'm very interested in MTRs; I know it's a hot strategy these days! Have you read 30-Day Stay yet?

I'm unfamiliar with the Phoenix market, but Furnished Finder has a great resource where you can get info on supply and demand for MTRs in any given zip code.

Congrats!

Hey! I'm also a rookie, but I was looking into the same thing a few months back. We have equity in our current residence and wanted to use a HELOC to fund our next rental property purchase. We didn't want a cash-out refinance because we got such a good interest rate in 2020.

I recommend looking into the difference between a HELOC and Home Equity loan and deciding which better fits your needs. HELOCs work more like a credit card (to some degree), and HE loans are more like traditional loans. Ultimately, we decided to get a HELOC—whether or not we end up using it to finance our next property, we now have access to that cash if we need it! (With a HELOC, you only pay interest on what you use.)

A few more things to think about:

-Definitely shop around for good rates. You would be surprised by how much it can vary.

-Lenders don't typically like you using a HELOC to finance another property; they want you to use a home's equity to improve that same home. I don't think it would stop them from lending to you altogether, but something to keep in mind.

-A HELOC is a temporary solution, and you need to make sure you can pay off the balance once the repayment period starts (typically after 10 years). We decided that in the grand scheme, we hope to have multiple properties by then and should have no issue refinancing something to pay it off—but make sure your long-term needs and goals fit this concept!

-Learn about the HELOC payment terms/amounts and work that into your deal analysis like any other expense to ensure the numbers work. (Example, if you use you HELOC for a down payment, that means you're paying $X in interest every month during the draw period. Make sure that $X amount doesn't put your cash flow in the negative.)

From one rookie to another, I hope this helps!

Starting out AND scaling! I want to turn my primary residence into an investment property, then purchase my first "real" investment on top of that :)

Living in an expensive market! I know there are options (investing out of state, raising capital, etc.), but it makes it all the more intimidating to get that first investment rolling.

Really glad you enjoyed the book!!

You can't time the market! Who knows where prices or interest rates will go this year. I bought my first property during the height of the pandemic and everyone thought I was crazy—but now I have a 3% interest rate :)

It sounds like you are in the PERFECT position to try house hacking. It's seriously the best and easiest way to get started in real estate. You could pick up Set for Life or The House Hacking Strategy to show you how—lots of great info and examples in there.

Also, you can find investor-friendly agents on Agent Finder!

Hey Juan! Are you having trouble finding good deals where the numbers work, or are you just not sure which direction you want to go in next?

Some great books for creative strategies if the numbers just aren't wokring:

30-Day Stay (medium-term rentals can bring more cash flow than LTRs)

Long-Distance Real Estate Investing (you can look for properties out of state)

Wealth without Cash (not released yet, but subto or seller financing could be helpful given current interest rates!)

We just released a great new book, Real Estate Rookie, that covers a lot that you need to learn about your first investment property.

For LTRs, you should check out The Book on Rental Property Investing. It's a classic!

For STRs, you should check out Short-Term Rental, Long-Term-Wealth (written by Avery Carl, who actually lives in Destin, FL). With this type of investment, you will most likely see better cash flow IF the occupancy rate in your town is decent and there's not too much competition. STRs also require furnishing, while LTRs typically do not.

And don't forget about MTRs (30-Day Stay)! They are fantastic in certain areas; more cash flow than LTRs but more security than STRs.

Quote from @Grant Shipman:

Quote from @Kaylee Walterbach:

Quote from @Eliott Elias:

You want to be well versed in real estate, you want to be able to see every situation and figure out the highest and best strategy for the property. If you're only good at flipping homes it takes you out of the running for a lot of deals. 

 Agree! Different books for different strategies.

 thanks for sharing.  How many strategies do you think someone ought to learn before they try one out? 

I don't think there's a set number—just depends on how long it takes to find a strategy you feel comfortable with.

For example, say I'm brand-new to real estate, and I pick up a book on STRs today. I'm excited, do some research, then realize I'm not too sure about the current market.

Maybe book 2 is about creative financing, which is great knowledge to have and one more piece of the puzzle.

Then maybe book 3 is about medium-term rentals, something clicks, and—bam! I'm ready to creatively finance an MTR deal!

Granted, all this reading could be going on while I'm sitting back and waiting on a great deal to show up. Maybe I'm halfway through book 2 and see a great deal... so I drop the book and buy the property instead. I can always finish reading it after the closing table!