All Forum Posts by: Konstantin Ginzburg

@Ryan Trexler

Doing a cash out refinance on a home with equity in it is a solid strategy for acquiring some quick cash when you need it. Keep in mind though, that interest rates have gone up considerably in the last year. This means that if you refinance from the lower interest you currently have into a high interest rate that is available on the market right now; then you will increase your cost of capital by a large degree. From a purely investment standpoint; this might not be an ideal move.

@Harita Konjeti

What does your lease state? Situations like this should be outlined in leases. That includes stating that the property owner (you) has the right to enter the property and make required repairs as long as proper notice is provided (check with local laws but 24 hour notice is fairly standard). I would also advise against allowing a tenant to use their security deposit for rental payments. The security deposit is there for other reasons such as post-moveout repairs and unit turn around. This sounds like a tenant that you are better off without and I would strongly look into serving them notice and beginning the eviction proceedings if they do not comply. 

@Nadia Bipialaka

I think that the choice you would need to make has more to do with the property you are able to find. If the goal is to BRRR, you will likely run into several problems in the current financing environment; the primary problem being the cost of capital. As everyone is aware, interest rates have been rising rapidly over the last year. Due to this the interest you get on a HELOC, hard money, or conventional loan will be very high. By using both a HELOC and a second financing package; you will be combining two costs of capital. I am not saying this to discourage your plan; but to make you aware of this to ensure you run your numbers accurately and account for this when you select your property. These two combined costs will increase your holding costs until you are able to refinance out. The longer the holding period is, then the higher the expenses will be. Especially in a high price market like Philly, this will present you with a challenge if your goal is to BRRRR and regain your full initial capital. I would focus on finding a property and then assessing the what repair costs and time frame needed to complete that project once you have a house under contract. You have secured your financing already with a HELOC; continue to shop around for HML or conventional lenders to see what financing options you have. At the same time, continue to look for properties that are on the market at a substantial discount. Possibly look to network with wholesalers for this (although this will also be a increased cost that needs to be factored). Once a property is under contract, I am sure you will find plenty of help on here running the numbers and providing opinions on how to best proceed. Best of luck on this venture!

@Caleb Brown

Condos can potentially be a good investment but there is risk that comes along with them that needs to be considered. One big upside to real estate is that your revenue (rent) appreciates over time while your mortgage payment remains fixes except for insurance and taxes that can appreciate as well. By purchasing a condo, you will need to deal with another appreciating cost in HOA fees which can slow or eliminate your cash flow. You would also have to follow any guidelines set for by the condo HOA so getting a feel for the management is crucial. For example: how do they feel about short term rentals? How do they feel about renters in general? Condos can still be a good investment, but there are just other factors and due diligence that need to be observed when you are entering that market.

I have one Instagram account that is intended to market our STR. Our property is located within New Orleans so we have a link to the listing within that IG profile, the majority of our content features the attractions of the city. We have not had too many bookings from this method that I am aware of but the IG account is still fairly new so hasn't drawn too many followers yet.

@Bobby Paquette

I've personally always been drawn to the mountains so that would be my choice. 

@Kristina Hinostroza

Zillow property management has a feature that allows tenants to provide a background check during the application process. Viewing this background information from each tenant is a very good initial source of information to eliminate some tenants such as their rent to income ratio (3x or above is the normal rule of thumb), no prior eviction record (a prior eviction will automatically make us reject an application), and credit score (I personally do not weigh credit score when I select a tenant but others may). Once I have a tenant whose able to pass a background check like that, I will contact prior landlords to ask about any prior issues they may have had (late rent payments, damage to property, what condition did they leave their unit in, ect.). Once I am comfortable accepting a tenant, I would forward them a copy of the lease for their review and allow at least 24 hours for them to look over the lease before I schedule them to sign. Once an agree is signed, I require first months rent and a security deposit to be provided prior to given them access to the actual property. As far as a specific lease, there are many template that you could find online. I may also ask around within your network with other investors to see what leases they use. Your real estate agent may also have a template to get you started. You are free to amend leases to suite your suites but it may be a good idea to consult with a local real estate attorney and refer to local tenant laws to ensure your amendments stay within the law. 

@Jennipher Jess

Mid-term rentals do have the potential to be more profitable but they will require more work such as furnishing and more frequent unit turns. This will also depend on whether or not there is a market for short or medium rentals in your area. Is there a nearby hospital that attracts traveling medical staff? Is there a nearby school that attractions students that need housing? Is there a nearby attraction that could attract tourists? Whether you use medium or long term rental strategies will fully depend on what the market demand is in your area. 

@Sean Sakaida

Networking. Attend local meetups of real estate investors in your region and see if any of them would be interested in partnering with you. Keep in mind though, I would not approach the subject of getting financing from them as soon as you meet them. This would be extremely off putting. People lend money to individuals they trust and get into relationships they view as mutually beneficial. You need to show your value as well build trust with someone prior to hoping they will invest their hard earned money in you. 

While I think mentors and courses can help many fast track themselves into a position to make deals; I also think that the amount of free information that is available to people entering the market is substantial. If I was brand new to real estate investing or any new industry; I would prefer to spend a large amount of time reading books, reading this forum, listing to podcasts, watching youtube videos, and networking at local real estate investor meetups before I pay a substantial amount of money on a coach or course. If I was to go the coach route though, I would do a lot of research to ensure that they are legitimate such as referrals and background research into their business track record.