All Forum Posts by: Nicholas L.

@Francis Bediako

can you buy a place, house hack it, and use part as an STR? this would combine STR management with homeownership

good luck

@William Miller

just a few reactions and cautions

-BRRRR is not a cash flow strategy, it's an equity strategy. if you do it right you'll have a great, fixed up property, and have forced a bunch of equity - and have no cash flow. now, there's a way to generate cash flow - you sell the property as a flip. but again, BRRRR holds aren't going to generate any cash flow.

-BRRRRs are much more challenging out of state.  i did 1 an hour away from me and it was a huge pain.  how will you find deals and move on them fast enough?  how will you find contractors?  how will you manage the rehab?  

-why not stay local?  i bet you'll tell me the prices are too high.  but, it's not easy in Indianapolis or Dayton either.  other challenges - older properties, inconsistent appraisals and lots of demand there too for the best properties by people who can move faster than you can, plus what i mentioned above.

hope this gives you some things to think about

@Keegan Rosett

either through your own marketing efforts - sending postcards, driving for dollars, whatever - or by working with other investors or wholesalers who surface them.  or even looking on market.

@Janell E.

hello. i don't know anything about 1 so can't be of help there. i would recommend against 2 unless there is something else to note. based on what you wrote, the ARV isn't high enough for hard money to work. when you go to refinance you'd need to bring cash to closing to pay off the hard money loan and based on what you said, you don't have it.  but let me know if i am missing something...

@Keegan Rosett

i would not try to creatively finance your own primary.  this is more complicated than buying an investment property this way.  there's nothing wrong with renting (or whatever you're doing) and saving up.

and, i would not start with a sub-to deal, period, full stop.  a much higher risk strategy for a beginner.  tons of posts on BP on why.

to answer your question: these deals are typically found off market.  but i look for seller finance deals on market too.  typically need a paid off property, sometimes called a 'tired landlord.'

hope this helps

@Dan Keefe

if you're trying to make a return that beats the interest rate on a HELOC to generate "passive income"... that is going to be very, very tough. HELOC money is expensive money. so this is basically impossible on LTRs. you would need some kind of active income like a flip. and a BRRRR is not going to generate ANY "cash flow" in the short term. rates are too high. BRRRR is an equity strategy, not a cash flow strategy.

and just to be direct... since you asked, my advice would be to build up a track record first. if you can succeed on a flip or a BRRRR with other financing options - great. but borrowing the money from a relative on your very first deal, with zero track record, in today's tough environment? i don't think that is fair to either of you.

just my opinion

good luck in whatever you decide

@Austin Lowe

it sounds like you need professional advisors here - only you have a copy of your contract.  what does it say about refinancing and paying the balances off?

@Robert Weinstock

yes, something is off.  I don't know that market, but random long term rentals just aren't cash flowing $1000 a month right now.  so - good instincts.

and yes, new investors tend to overlook lots of costs.  closing costs to buy, rent ready costs to rent, repairs and capex to maintain, turnover costs when tenants move out...

the market is very, very tough right now.  with interest rates high cash flow is almost non-existent on long term rentals with conventional financing.

@Ryan Ramola

i hear you, but being in person and hands-on is an advantage too.  there really isn't 'cash flow' anywhere right now with interest rates where they are - you are just not going to find cash flow in B-class neighborhoods with conventional debt.  deals right now take creativity and so you're limited when you're 10 hours away.

have you tried looking off market for deals in Oxford or in the surrounding area?

@Ryan Ramola

why not stay local?