All Forum Posts by: Martin Neal

@Austin Patenaude Sounds like you are referring to a studio. You can do that, however it's not necessary. I recommend the LVP, higher ROI than carpet.

@Michelle Montilla It depends on your comfort level with OPM. If you can do it and do it right, using OPM is usually a good option. If this is your first deal, I would say use the HELOC and make sure you can deliver a solid return before risking someone else's money.

1. Location

2. Price

3. Cash Flow

4. Style of property (House, townhouse, apt, etc.)

Deal breakers for me are old frame houses. 

I typically buy townhouses because they make for great rentals in my area.  

@Shawn Skaggs My HELOC is 10 years interest only and 20 year repayment. It's what I'm use to. That's what I recommend.

@Jay Maranan I do hardwood in houses, carpet in bedrooms apartments only. Carpet in apartments just so the tenant has some peace and enjoyment in their bedroom. I prefer hardwood because it’s in style and looks better.

@George Chung great question. Hard to say, but I would definitely compare last year return to this one and examine the difference. I hope you received more money this year too.

@Jordan Little I manage from 30 miles away but I rarely go to any of the properties. I rely heavily on my boots on the ground to handle any repairs or issues that require a physical appearance. I take phone calls and handle what I can handle over the phone. Some issues are so small, I walk the tenant through how to fix it via FaceTime.

@Vincent Plant I’m currently working with a lender that does not require a six month seasoning period. You may want to shop around for lenders. Also Alexander Felice wrote an article about the Delayed Financing Program in which you can refinance sooner as well.

https://www.biggerpockets.com/blog/work-with-lenders-brrrr-method

@Joe Villeneuve I just say let’s agree to disagree.

@Joe Villeneuve EO also has a way of doing it with rentals.

Ultimately, I want my cash working for me at all times. I Could take the cash flow from my rentals and let that money sit in a bank account earning 0% interest until it's large enough to go toward my next investment or I am comfortable enough to use it to pay down the debt on my property, that's one way to do it. I prefer to have a HELOC on one of my rentals, take all the cash flow either one or more rentals and pay off the HELOC. The HELOC functions the same way as a checking account. If I need to pull money out for a rainy day, I can. Now my money is working saving me 5-6% interest. Ultimately the goal is to pay off the property as quickly as possible. The less interest one can pay is ideal. I would rather pay $125K on a $100K loan versus $200K on a $100K loan. When you pay the mortgage, x-goes to principal and y-goes to interest. I want to pay as little interest as possible which will save me money over the life of the loan. In this scenario, all the funds comes from rental properties. But again, this depends on your investment philosophy and goals.