All Forum Posts by: Nathan A.

That looks better!

It's worth being confident in your rehab number. Make sure you aren't just taking someone's word for how much it would cost. Make sure you've actually broken down everything the property needs and estimated it out. If you think you could get the opportunity to walk the property with a contractor, take it. Make sure you base your offer on the reality of what the property needs, and make sure you are prepared to swing surprises if the rehab costs more than you expect.

Quote from @Joshua Bruski-Hyland:

If I stay another year, I will get my Real Estate license and look into investing in another property. I haven't yet decided on my strategy for the next property, but it will likely be a BRRRR or 2/3/4-plex.

I'm curious why you're interested in getting your real estate license. You definitely don't have to do that in order to do a BRRRR or house-hack a small multifamily.

In a desirable area, you'd be very lucky to get 1% right now, let alone 2%. Anything actually meeting the 2% rule in today's market is likely in a Class D area you don't want to buy as a beginner.

This blog post by Dave Meyer talks about the reasons the 1% rule is becoming less useful as a rule of thumb. In the spreadsheet accompanying this post he calculates the average rent to price ratio as 0.46% in the Atlanta area.

I have a lot of feedback here. First off, the 0.6% mortgage interest rate is ... not realistic. Second, you need to include vacancy, repairs, capital expenditures and management fees (unless you're self-managing).

For your next purchase, consider buying a small multifamily property and live in one unit while renting the others out.

Pay any past-due accounts. Always make payments on time. Pay down credit card balances but keep the accounts open, so your utilization of your available credit goes down. Also, ask for higher credit limits so your utilization goes down. Don't open too many new accounts.

Real estate investing is a lot of work. You have to be willing to put in the work. You sound happy with the returns you are getting in stocks (not everyone here would be, but you sound like you are). That, to me, does not give you a compelling "why" for getting into real estate investing.

This might not work for him if he wants the money as a lump sum immediately, but you could ask him if he'd be willing to sell it to you with seller financing.

Vacancy, repairs and capital expenditures are unrealistically low here. At 1% vacancy you're assuming you'll only be vacant for a single week every 2 years. I don't think $144 a year for capital expenditures is realistic for the reasonable lifespan of HVAC systems, water heaters, appliances or roofs. You also don't have management fees listed -- were you going to self-manage?