All Forum Posts by: Kyle Penland

I wasn't saying buy a property that doesn't cash flow...I was meaning taking the cash and dumping it in to the property to build extra equity.  

Anyone else have any thoughts on this?

@Account Closed Thanks for your thoughts on this.

Can you not become a realtor and have them employee work through your license?

Number 1... My advise is start with 1. You will pick up small tidbits in every one of them that you can use. Try to listen to 1 every day. I listen at the gym everyday, I know that isn't what you wanted but it's my .02

A credit score of 800 to me tells the tale..thats not something they will want to mess up.  I'd ask for proof they are paying themselves 8k a month (paycheck stubs).  To me bank statements are not something I'd be giving to anyone, landlord included.  Chances are tax returns won't reflect this if it is this new.

If you close on the property, have the tenant sign a new lease to you.  Also, check their background, credit or whatever you check to vet your tenants.  If they pass, have them sign a new lease, if they are less than ideal, give them notice to move.

I've been thinking of how to get outside investors to build my portfolio much quicker.  I'm not looking for real estate investors per say, just people with an inclination to make more money.  Your feedback is appreciated on this.  I've thought about finding properties, raising the 25% down from outside instead of funding myself and offering that person a 50% return.  For example.  200k property.  I need 50k to put down, so I raise that.  Pay on the property, and take no cash flow.  After 5 years or so, refi cash out and pay the investor 75k and they are out of the picture.  Curious as to your thoughts on this.  I realize there may be an issue when I go to refi that the property may decrease depending on how the economy is, but I would write the contract to allow an extension of a period of time....What are the down falls you see?

doubtful you will be able to only put 5% down on multiple properties...Have you talked to a mortgage broker?

I am going to cash out a property of mine soon...Before I even considered discussing it with my lender, I checked to make sure I would still make income on the property...If you are going to go Cash Flow -, Personally  I wouldn't do it, it doesn't make sense.  This is your property however and your goals may be very different from mine...My personal goal is to make a dollar amount per door based on the price of the property and if it won't bring me that, then its not worth it or my time.

@Kevin Izquierdo

Since there are Multiple types you would need to consult a mortgage broker...Some do not permit you to ever rent out the home and some do.  Again, I am not a professional in this particular strategy because it doesn't work for me since I have a family and need to keep them stable.  Why I said above check with your local bank or broker.

Sure, I believe are in a unique situation.  Owner occupy homes only need a 3% downpayment.  You will put 20-25 down on investment properties (that you don't owner occupy) so while you are in a situation where you can actually live in the homes for the time required, (check your local banks but I think it is a year) then you can use that down payment to purchase more properties and live in them commonly called here "house hacking".  Pardon the run on sentence.   With that said, do what you feel is best. but if you purchase a 3/2 rent out two bedrooms, it may take you longer than 12 months to save for the next property if you put 25% down...If I were in your shoes, I'd put 3% down, live there for a year, rent out the house fully in the year, and have someone ready to take your place and in month 9, start looking for your next property, put 3% down, rent out the other two bedrooms, rinse repeat type deal...With that being said, there will be some difficulty in finding a property that will cash flow at 2/3rds occupancy so keeping more of your funds liquid would be my suggestion...If you put the 3% down on property one, and 3 months down the road the Duplex you dreamed of comes up...you are ready and have the 20-25% downpayment and be good to go.  The real estate game is one where you are in or you are out most of the time depending on money...You have to be prepared to be in 24/7 so when the time comes where a great deal you want comes up, you can move and build your portfolio.