All Forum Posts by: Ko Kashiwagi

Hi Clinton,

Have you looked into your Return on Equity (ROE)? While selling or refinancing would lead to lower cash flow, this does not necessarily mean your return is lower. Your Return on Investment may be lower, but it's also important to keep up the ROE.

Given your rate is 6.25%, it doesn't sound too bad for you to buy a new property or refinance if you find a good deal (many investors are holding 3-4% which would be much more difficult to let go. I'm curious to see if the investment property you have is in B, C or D neighborhood as this would heavily affect appreciation.

Hi Dylan,

I've seen/heard of a lot of people investing in St. Louis and it for sure is a market you can do well. It seems like the returns and characteristics are very zipcode/neighborhood dependent so I'd recommend you talk to people and do research before buying.

Hi Michael,

Have you asked your PM company for comps in the area? If they have similar properties renting at a certain price that is lower, it may be a reasonable suggestion.

I'd also cross reference your rent estimates. You can use alternative softwares like Rentometer and also look up currently listed rents on Zillow/Apartments.com.

Hi Wesley,

Are you looking for an investment loan? In that case, you would most likely buy the property under a LLC. Your personal names would be used to obtain the loan, but if you two are aspiring to build a portfolio together, it wouldn't be a bad idea to partner up.

Ultimately, I would ask whether you want to be partners in the long run or not.

Hi Ashek,

Finding good deals is definitely one of the hardest part about investing. How are you currently sourcing deals? There are many ways to source off-market deals:

1. Find a rockstar agent - through BiggerPockets, Meetups, internet search and referrals you can find a realtor that regularly work with off-market distressed property. If you ever find a distressed property listed but the deal doesn't work, ask the realtor if they have another one or ask them to put you in the CRM.

2. Wholesalers - wholesalers are always looking to get in touch with investors and they can feed you deals as they come. You can ask them to put you on their email list.

3. Direct Mail - you can gets lists of distressed properties through title lists and softwares, and send them mails. You can also cold call them as well.

I'll also point out that there are sometimes great deals on-market. You might have to be quicker to scoop up the deal, but there's always deals everywhere. You also have the option to invest out of your city/state. Given you have experience with house-hack it may be a good option to look elsewhere.

I'm also curious as to whether you are considering other creative options like short-term rentals, mid-term rentals or working on projects that require more rehabs.

Best of luck!

Hi Victoria,

For a BRRRR, investors usually use cash out refinances such as a DSCR loan. This is because the rates would be lower and HELOC is generally used for shorter, immediate use of cash.

Is there a particular reason you are looking for a HELOC?

Hi Tammy,

Has your credit score been affected by your balance growing? Refinances would look at your credit score so this would be important.

If you have built up equity, refinancing could be a great option.

Hi Austin,

Is the concern regarding the corporate veil regarding obtaining financing or regarding taxes? Either way, drawing the fund from the personal checking account should not be an issue. When you write the check, you can put "Owner's contribution" in the memo line and then make an entry in you rLLC's accounting records as owner's equity contribution. It's generally advised to keep personal and business finances separate and regularly update the LLC's documentation to meet state requirements.

Hi Quinton,

I recommend checking out Facebook groups for your target market as there are wholesale groups. There's also discord channels for wholesalers that you can check out.

Hi Alex,

Are you looking for a turn-key rental or a value add? And what percentage of down payment are you looking to put down?

In appreciated markets like Fresno, it is definitely more difficult to get cash flow, but you can definitely get more creative if you do value add or short-term rentals.