All Forum Posts by: Kris Langford

Great looking Transformation. How much of the work did you and your husband do? In my area it doesn't seem possible to spend 35k to get so much work done. 

Great job, Good luck with the sale and your future houses.

@Larry Fried, Do you mind sharing which Turn-key companies you have experience with and which ones you might recommend? how have you found Property Managers and what other areas of trouble have you personally come across? 

I'm interested in buy and hold properties, ideally with positive cashflow. I live in the Portland, OR area and have a tough time finding any properties that will positively  cashflow. I would prefer to invest locally and manage myself. I started browsing turnkey companies in the midwest and like the numbers I see, but is it fools gold? 

I'm interested in hearing from any local investors who may have used some of these turnkey companies. Have you had positive experiences? Would you do it again? Are the numbers they advertise real? How much more difficult is it owning property so far away? Would you recommend this strategy for a new investor? Any other insight you might offer.

Also, what could be some areas I may be missing locally? Not necessarily locations, but types of investments that may be unconventional. My main area of research has been SFR and Small MFR.

Thank you 

Kris

@Susan Maneck Thanks for sharing your experience. Also thanks for the advice. It is really helpful and encouraging to see others who have started where I am and are having success. I want to be where you are in 5-10 years and hopefully well on my way to retiring early. 

Also thank you for your service as an educator. I know it's not an easy job and can be thankless as well. 

Susan,

Do you buy your properties in full or are you taking out a mortgage? That seems like the one thing that gets in the way of other BRRRR folks is getting past 5 conventional mortgages. But I've also read that your cash on cash return is worse when you pay cash for these properties. Also if the intent after seasoning is to refi and buy another property does it really seem best to tie up all your cash in 1 property?

I am interested in the midwest markets and think my HELOC would be enough to buy 1 or 2 units in the areas I have looked. I am just hesitant on buying in a market so far from where I live. I think starting out using a turnkey company would be best, then as I get more familiar with the market and professionals in the area I could find my own deals.

Hi everyone,

I wanted to ask how you all might proceed if you were in my shoes. 

I have read up on the BRRRR strategy and think this model sounds like my cup of tea. I have a goal to retire from my full time 9-5 job in 10-15 years and build enough cashflow to facilitate this. If I can reach 10k in monthly cashflow I will consider myself retired.

A little background;

I currently own a SFR starter home 3 bed 2 bath in the Portland, OR area(Tigard to be exact). The comps in my area go for around $325k-350k. I have been in my home for 5 years and owe $194k. I have a VA loan so renting this property is not an option unless I refi.

I have talked with the bank holding my mortgage about an HELOC. They said I could expect $55-60k as a line of credit based on 80% LTV. My mortgage would increase by approx $400 per month based on their terms.( sorry I forgot to right down all the terms since I was just inquiring at the time, 3months ago) I'm pretty sure it was on a 30yr fixed.

My wife and I both work full time and have 2 small kids at home. We have very little cash savings, so our only option (in my mind) is to borrow against our only asset, the equity in our personal residence.

My questions are;

If I am looking to acquire my first investment property using the BRRRR model what would be the best first step?

1. Should I consider selling my house and looking to turn the cash into a down payment on 2 separate houses, one being my primary residence and the other an investment property? ( my wife would hate living in a different house, unless it is an upgrade) 

2. Follow through with the HELOC and use the cash to put down on my first investment?

3. same as above, but buy in a market where I could pay cash for my first investment?

4. any other option I am not thinking of yet?

Again I am looking to start down the path of the BRRRR model.

Thank you all for the help. I have already learned a lot from this site and look forward to learning a lot my in order to achieve my goals.

 Jay,

Do you have any recommendations on IRA companies. My current employer doesn't offer self directed IRA's for real estate only for mutual funds.

Do you have experience buying notes though an IRA? I like the idea and after researching the last few days think it would be a great way to expand my portfolio.

Also with this model would you recommend staying away from second position notes or non preforming? They seem riskier, but more in my budget right now. 

Kris

Thank you all for the warm welcome and great advice so far. 

I know that I have so much more to learn. The idea of investing in notes is new to me. I have really only thought about physically buying the property through conventional financing and building up that way. But since I have been reading and researching. I have come across many new concepts to me, including notes, hard money lending, and turnkey to name a few. 

Sometimes you feel like you know enough to survive, but obviously I have more work to do. 

Hi,

My name is Kris and I am excited to get started in real estate investing. I have a goal to retire from my 9-5 job in 10-15 years. I plan to build enough cash flow to quit my day job and use real estate investments to continue to build wealth and provide for my family.

I live in and was born and raised in Portland, Oregon. I have a personal residence with enough equity to start investing, but don't know where to start in my area since prices seem too high for me as a new investor. I would love to invest in markets that have better cash flow, but I am worried about finding and managing properties from afar.

My mother has been a real estate investor for the majority of my life and thru that I have helped on many flips and renovations of rentals. I am not scared of doing any of the work myself, but I just don't have a lot of time since I have a full time job and 2 small children.

My interest is to find buy and hold properties with positive cash flow. But if the right flip was there locally I would also be interested.

I hope to connect with many of you and know that together we can achieve our goals.

Thank you

Kris Langford