All Forum Posts by: Kiernan LaFaver

Welcome to the community, it’s great to be surrounded by like minded people! There’s so so much to learn about real estate investing and what works specifically for you. I’m happy to be a resource as you begin your journey! 

Hey Gino! I was in a somewhat familiar situation last year when I started in sales. If I can recommend anything (and everybody is entitled to their own opinion) I would recommend finding a traditional brick and mortar brokerage where you have access to a mentor, company paid resources, company name recognition, etc. Yes, the starting split might not be as sexy as some of the virtual brokerages, but if you find the right broker and mentor the reward is immensely greater than if you started by yourself. I’ve heard from a few other agents that have transferred to some of the virtual brokerages that it’s not as great as it all may seem. You have a different level of support, have to pay for all of your supplies/marketing, and generally have to figure it out yourself. I’d be happy to help and share my thoughts if you’d like! 

It depends on WHY there’s no rentals. What’s the typical income in the area? If it’s a stable population with good roads, restaurants, schools, hospitals, etc…it’s very likely there is low turnover due to high tenant retention rate. Which is good from an investing position as you know you’ll have long term tenants. You can get top dollar likely, but it still needs to be reasonable and comparable. 
if it’s a declining town with not many attractions or amenities, then it’s likely there’s no rentals available because nobody wants to live there. 
mot sounds like you may be describing more situation #1, in which case it’s a ripe opportunity if you can get a deal on a property

Larger multi families (3-5 units) aren’t as numerous, but they still exist and can be great opportunities if numbers make sense for you. They are fairly scattered throughout the city. 2 family properties are very prominent throughout the entire city, as there’s multiple universities and hospitals all within a few square miles. There’s a handful of apartment complexes that are currently for sale in the area. Have you considered apartment complexes at all?

If you aren’t employed, getting financed can be a little tricky. It seems like a hard money lender typically a private individual or venture firm) would be the only route to go since they are a little more lax on lending requirements than a conventional lender. Yes after rehab there is a possibility for “landlord insurance” that you’d need to specify with your insurance agency if you’re not living there
most insurance agencies are hesitant to lend on properties that aren’t occupied, at least from my experience. Again, there’s hard money lenders that will work around this. Is a personal loan an option? 

Both are great areas to look at and get your feet wet in! First thing I would consider starting out is identifying which specific neighborhoods within those cities. Who’s your ideal tenant? Is it students, nurses, any paying tenant etc? Also worth noting which areas are appreciating in value, since you’ll have to have an exit plan eventually and the extra value add is a great bonus. 

Quote from @Dav Pohote:

Quote from @Kiernan LaFaver:

I don’t have my own investment property yet, but I think i would be more likely to get a 30 vs a 15. With a 30 year mortgage, you can still treat it like a 15 year mortgage with double payments, lump sums, etc. you also have the flexibility of a lower monthly payment, so cash flow would be better and would free up more capital to invest elsewhere. A 15 year mortgage requires you to pay whatever the monthly payment is with no flexibility, with a higher payment. I guess one of the biggest things to consider is how long you plan to be in each specific property. If it’s a stable property, 30 years wouldn’t hurt but 15 years might lend itself to a riskier investment as you wouldn’t be tied to it as long. 

The cash flow is solely to cover operating expenses and repairs. I'm not looking to make a living from it in the first 10 years or use it elsewhere. It's also not enough, say $15k/cash flow a year, to use in other properties. 

The goal has been to get to a passive income place where you stop paying interest have cash flow from the rent money coming in. The down payment is the same for 15 yr and 30 yr, so are people with a ton of properties all on 30 yr? 

Investing is highly individualistic. What works for me may not work for you, ya know? While I may be more likely to do 30 and have the flexibility, your situation might be more geared towards the 15. Personally, I like the lower monthly payment with a 30 and then have extra expendable cash flow on top. 

I don’t have my own investment property yet, but I think i would be more likely to get a 30 vs a 15. With a 30 year mortgage, you can still treat it like a 15 year mortgage with double payments, lump sums, etc. you also have the flexibility of a lower monthly payment, so cash flow would be better and would free up more capital to invest elsewhere. A 15 year mortgage requires you to pay whatever the monthly payment is with no flexibility, with a higher payment. I guess one of the biggest things to consider is how long you plan to be in each specific property. If it’s a stable property, 30 years wouldn’t hurt but 15 years might lend itself to a riskier investment as you wouldn’t be tied to it as long. 

Welcome to the community! It seems like FHA might be a good route to go if possible or conventional if your credit and down payment. Lower down payment requirements but you have to live in the property for a year, no big deal if you plan on house hacking for FHA. Most lenders should be able to have both of these loan products. The FHA process is a little more stringent since it's federally backed. I'd recommend going with a local lender that you have a good relationship with as opposed to a large national company as they are likely to have better immediate customer service and are more likely to respond in a timely manner, which is important for your first loan. I've noticed that credit unions tend to have slightly better interest rates since they typically are not for profit whereas a normal bank or broker is. Happy to be a resource if needed!

If you intend to rent the property out after you live there for some time (fha is a year I believe), I’d focus on items that are going to attract the biggest pool of renters when doing repairs. Items like kitchens, bathrooms, convenient laundry, nice flooring are most likely to catch the eyes of renters and can justify market or slightly higher than market rent. Also need to look into the purchase price, renovation budget, and then potential rents per month. Does the rent make the investment worth it? Happy to be a resource if needed!