All Forum Posts by: Matthew McKee

 This is interesting, makes sense. You could always  raise the temp once a week to cleanse the tank. I’d recommend when it’s vacant so you don’t scold a guest!

VA loans can be assumed by anyone

There is a ton of great insight here. 

Appreciation typically has higher velocity so you can reuse the money invested for new deals more quickly and often as cashflow.

Cashflow typically costs more time/energy. Think management, more doors = more tenants.

Cashflow is the first benefit of real estate that dies. If your hot water heater or HVAC goes out in one unit that could kill your cashflow for an entire year from all units to recoup that cost of repair.

There's no right or wrong answer to this, it all depends on your investment style.

You can offer $180K on a $125K property but I wouldn't and here's why: 

1. If the appraisal comes back at anything under $180K you'll be on the hook to cover that cash. 

2. Just because your approved up to $180K doesn't mean it fits into your quality of life to spend that much especially if its on an asset that is values at $55K less than that. Have you seen what a mortgage payment will be on $180k at your current interest rate? How much more comfortable are you making that payment than on a $125K mortgage.

3. Have you found out why the seller wants cash only? might have been a typo that they're unaware of or might be some reason that's cheaper to solve than a $55K over asking offer.

4. Do you even know if the property is worth $125K? In my experience if a seller is dead set on anything then their expectations might be unreasonable in other areas of the contract.

5. What are the days on market? That will tell you a lot about what leverage the seller has and how reasonable the asking conditions are.

Hope this helps and feel free to reach out to a local Real Estate Professional or myself if you need help finding one in your area.

Hey @Keivan Cross, There are a ton of markets out there and each one is unique in its own way. There are also sub markets like STR, LTR, MF, SF that will all perform differently in each location. Seems like everyone is advocating for their own market which is understandable but I see how that could be frustrating to you. I think it may help you the most to answer a series of questions that will help narrow your search.

-What are your goals? 10% COC and appreciation year one is great but where did you get that? what are your long term goals?

-What are your exit strategies?

-Why real estate?

-Are you gonna self manage or hire a project, property manager?

-Totally passive or hands on?

-Turnkey or rehab?

-What excites you about RE?

Just some thoughts to get the wheels turning.

I'm just going to mimic what these guys are saying. There are much better markets to get into, especially for STRs. and if you buy >50 miles away you can utilize a 10% down second home mortgage.

Hey guys, I have a bit of experience in this. I'd love to connect and learn a bit more so I can best advise you through my personal or sphere's experiences.

@Nathan Gesner knocked it out of the park. Not much more to add to this, Maybe just find a mentor. It's always better to learn through someone else's mistakes before you make them yourself.

If it can 10x your situation you may consider using a business CC with 0% interest to furnish one or both units. I strongly recommend getting with a local STR PM and double checking their DD with AirDNA before you go that route though.