All Forum Posts by: Kevin Wann

Jay, thank you very much, I will do that. My plan is only use 50-70% of HELOC so as not to over leverage. Then use HM for bigger deals.

I am in the same spot. I have 4 properties that I bought in 2 months. I have about $300k in my house (it's paid for) for a HELOC. We want to buy 24 properties this year. We are planning on using the HELOC as down payments for many properties & using DSCR loans. We have a hard money lender at 10% & no fees. This will allow us to scale up really big without over leveraging. The properties will pay the HELOC monthly & the refinance in 6 months paying off the balance of each. Repeat. Does this sound like a good plan? Any info would be great.

Lauren,

I use Zillow, Realtor.com, & bigger pockets tools.  Between the 3, I can analyze most any deal very quickly.  I pick a state, then area, narrow it down, & then research it.  I invest in multiple states & have yet (knock on wood) to not hit at least a double on a deal.  My goal this year is 24 properties min.  Good luck & reach out if you have any questions.

2022 Goal (Nov):  Buy 2 properties by the end of the year and have them cash flowing.

2022 Outcome:  Bought 4 properties in 2 different states (not mine).  Closed on all 4 before the end of December.  Have received mail box money for 2 months now on 2 properties.  The other 2 need typical cosmetic work (paint, cabinets, door knobs, faucets, toilets, etc) which I will fly up & do most of the work myself adding even more equity.  They will be rented out for $800-$1000 a month each.  The 2 already rented bring in $650 & $750 a month.  I will self manage these properties until I can't, adding even more cash flow.

2023 Goals:  Buy 2 properties a month (24 for the year) and also get into multi-family

Welcome Jack & congrats on taking the plunge.  Your off to a great start.  I am in the same boat as my wife is tired of hearing about it as well.  I eat, sleep, breathe, & dream real estate & investing.  I have purchased 4 house in 2 months.  My goal is at least 2 per month next year.  That is doors, not just properties.  My next is a 5 unit that I am working on right now.  Good luck & get after it.

Half of the US will be on sale thru the next few years.  But why wait, just keep buying on the way down.

Welcome Jack & congrats on taking the plunge.  Your off to a great start.  I am in the same boat as my wife is tired of hearing about it as well.  I eat, sleep, breathe, & dream real estate & investing.  I have purchased 4 house in 2 months.  My goal is at least 2 per month next year.  That is doors, not just properties.  My next is a 5 unit that I am working on right now.  Good luck & get after it.

Ben is correct.  When I analyze a deal, I am using 8% int for the loan, & if it still cash flows my min, then i am safe

I would do a HELOC on the equity & keep the loans with low interest rates in place. You have enough equity to keep going for some time in the right markets. wait 6months to a year & refinance the new ones if there is significant equity & keep going. That's what I am doing.

I would never go into a deal with neutral cash flow or negative.  Cash flow is the name of the game to start with, appreciation is next.  If you go in the deal & can afford the negative or neutral cash flow & are able to fix the issues & raise the rents to market or just south of market rents, then do it.  I would not gamble on that unless you have done this many times & know the potential risks.  I personally don't touch a deal unless it cash flows (after expenses) $400 & up.  I've purchased 4 houses in 2 months & the worst one cash flows $600 & up to $900.  Good luck & make wise decisions for you & your situation