All Forum Posts by: Mitchell Sanedrin

 Thanks for your reply! I'll definitely reach out. Would love to hear any stories/insight on the subject. 

Yeah, this was my concern at first too (being a safety net, so I don't touch the equity). However, some of the books I've read (along with some podcasts) have mentioned using a HELOC on their primary as a "creative funding" way to "get into" real estate investing--however this is assuming that the ARP is correct (which is another thing I'm having hard time estimating lol).

Hi Everyone!

I've read a few of the BP books (No/low Money down, Rental Prop Investing, Ultimate Beginners Guide, etc.) and am currently on David Green's BRRRR book. I've come across a few times that some have used a HELOC on their primary to BRRRR and I was wondering if anyone would be willing to connect or to share their story? There's still a few questions that I have that I haven't been able to find on BP, but I was hoping someone with experience might be able to assist. I'm looking to possibly use a HELOC on my primary residence to purchase my first rental property investment, so any advice/tips is greatly appreciated!

Hello!

Per Brandon Turner's advice in his "The Book on Rental Property Investing" I've been allocating a few hours a day to analyze some properties using the BP's "Rental Property Calculator". 

I've found a few homes (Located in the SF Bay Area) that caught my attention and have tried analyzing a few of them (all resulting in negative cash flow). I've used Zillow, Rentometer, and BP's "Rental Estimator" and there were times that I'd gotten a wide spectrum (at least to me) of suggestions for what the property WOULD rent for.

Ex. Property A (3BD/2BA) would rent for 2000 (Per Average of Zillow, BP, Rentometer).

I've tried exploring craigslist also, and have found individual rooms (in a similar condition/style of home etc.) that are close to the one I'm interested in with roughly $800/room resulting in a total income of $2400.

Running the calculations with "Property A" with avg. rent of $2000 resulted in negative cashflow. Running the calculations with "Property A" with avg. rent of $800 was positive. 

Two questions then I pose from my experience:

 A: Am I doing something completely wrong with the calculator that keeps giving me negative cash flow, or am I just not finding good enough deals?

B: Which "estimate" in regards to rent should I base my math on? (rental estimators for renting the entire home v. renting the rooms individually). Living in the Bay Area, CA I've seen some pretty outrageous prices for rent which is how I came to this "challenge". 

Apologies in advance if this may seem like a stupid question to bring up--just lost and looking for a bit more guidance. 

Thanks in Advance!

Hello all!

I've been a long time listener to the BP podcast, and decided to create an account! 

I live in the SF Bay Area, and work in the recruiting space for a tech start-up. I've been wanting to invest in real estate (buy&hold) with a focus on SFR's, and am finally ready (at least I think lol) to take the leap.

I've been running the numbers in my area, as well as, some "outer cities" (Sacramento, Fresno, etc.) and have been holding back on some of the properties I've analyzed because of the "negative cash flow" that was calculated. I've been toying with the idea of investing out-of-state (Nevada, Oregon, Arizona), but am thinking I would rather have something a bit more close by especially for my first investment property to reduce the probable headache. 

Keeping my fingers crossed that I'll be able to find a "good deal" (in the words of Brandon Turner my $2.50 milk SALE)

If any of you are free I'd love to connect to talk about your journey!

Thanks for reading!