All Forum Posts by: Noah Wright

Hey Liliana! Funding your first flip can be a bit daunting, but there are several options to consider. Here’s how I and others have approached it:

1. Home Equity Line of Credit (HELOC): Since you have equity in your primary residence, a HELOC could be a great option. It allows you to borrow against your home's equity, often at lower interest rates than other financing options. Just make sure you're comfortable with the repayment terms.
2. Cash Savings: If you’re hesitant to dip into your non-retirement savings, try to assess whether you could use a portion of it for the flip while keeping enough for emergencies. Sometimes, a calculated risk can pay off in the long run.
3. Hard Money Lenders: These are short-term loans specifically for real estate investors. They can provide quick access to cash but often come with higher interest rates. This option is popular for those who need fast funding for a flip.
4. Partnerships: Consider teaming up with someone who has capital but may not want to manage the flip themselves. You could bring in your expertise while they provide the funds.
5. Seller Financing: Depending on the seller’s situation, they may be willing to finance part of the purchase, which can ease the burden of upfront costs.
6. Private Investors: If you have a good network, you might find individuals who are interested in investing in your project. Presenting a solid business plan can help you secure funding from private sources.

Whichever option you choose, make sure to run the numbers on the flip to ensure it’ll be profitable. Good luck, and I’m excited to hear more about your journey!

Hey Hamidou! It sounds like you have a solid plan in mind for house hacking in Tucson. Building a duplex on a single-family lot can be a great way to generate additional rental income, especially in a market where multifamily properties are scarce.

To evaluate whether this is a viable strategy, here are a few steps to consider:

1. Zoning and Permits: Since you mentioned the property is zoned R-2, make sure to check the local regulations regarding building a duplex. Verify that your plans comply with zoning laws and that you can get the necessary permits without too much hassle.
2. Construction Costs: Get estimates on the construction costs for building the duplex. It’s important to have a clear understanding of both hard and soft costs (labor, materials, permits, etc.) to assess your budget accurately.
3. Projected Rental Income: Research the rental market in the area. Look at comparable rental properties (especially duplexes) to estimate the potential income from renting out one or both units. This will help you gauge whether the rental income will sufficiently cover your mortgage and expenses.
4. Financing Options: With your plan to put 5% down on the single-family home, make sure you understand how the financing works for the construction part. Some lenders offer construction loans, or you might consider a home equity line of credit (HELOC) after acquiring the property if you build equity quickly.
5. Long-Term Goals: Consider how this fits into your long-term investment strategy. Building a duplex could enhance your portfolio, but be sure it aligns with your financial goals.

If you have any questions about financing options or deal analysis, I’d be happy to help further!

Good luck with your house hacking journey!

Hey Romie, congrats on wrapping up your second BRRRR—exciting stuff! When it comes to cash-out refis without a seasoning period, it can be a bit niche, but I've funded several like this in the last year. I'd be happy to connect with you on this.

Best of luck with the refi—hope you find the right solution!

Hey Sinuway, welcome to the forum! It’s great to hear you’re ready to dive in, especially with such an ambitious strategy. I agree, the market can feel a bit overvalued in some places, but with the right team and strategy, there are still plenty of opportunities out there.

For fix-and-flip hot spots, you might want to explore areas that are still affordable but showing signs of growth. In the Midwest, Cleveland and Detroit have been popular with investors due to lower entry prices and strong potential for appreciation. If you're thinking about other states, parts of the Southeast like Atlanta and Charlotte have also seen a lot of activity, with strong rental demand and growing populations.

As for creative financing, I've seen investors use DSCR loans and Fix-and-Flip loans to get deals done without needing the traditional income verification. If you're diving into BRRRR and want to connect with a lender who understands the investor mindset, feel free to reach out—I'd be happy to discuss options.

Best of luck as you build your team! Looking forward to seeing what you accomplish.

Hey Rahul, welcome to the world of real estate investing! It sounds like you're doing your research, which is great. Deciding between an SFR or a BRRRR strategy can really depend on your risk tolerance and the type of cash flow you're aiming for.

The BRRRR method can be great for long-term equity building and maximizing your returns if you're up for a more hands-on approach, especially in markets where property values allow for renovations that increase value. On the other hand, an SFR might offer more stability with less intensive management.

If cash flow is your primary goal and Phoenix isn’t making the cut, you might want to explore cash flow-heavy markets in the Midwest or the South. Places like Indianapolis, Memphis, or even parts of Texas could be worth looking into. I’d also recommend checking out markets with strong rental demand and lower entry points.

I specialize in DSCR loans for investors, so if you want to explore financing options that don't rely on traditional income verification, I'd be happy to chat and help you get started.

Looking forward to seeing where you land!

Hey Cheryl! Welcome to the Middle TN market. It’s great to see you're focusing on wholesaling and Buy and Hold strategies. Nashville is a fantastic area for both, with strong rental demand and plenty of opportunities for single-family and multi-family investments.

I specialize in DSCR loans (Debt Service Coverage Ratio), which could be a perfect fit for your buy-and-hold goals, especially if you're planning to grow your portfolio. If you're looking to connect with lenders who understand real estate investors' needs, I'd be happy to chat and see how we can work together.

Best of luck building your team—I’m sure you’ll find great success here!

Hi Wayne,

There's creative financing possible in the interest of cashflow. With regards to this, I'd like to make two points for your benefit, based on what you're saying.

1. Interest Only Loan - This allows you to avoid negative cashflow in your monthly budget. You are also able to pay down the principle as is comfortable, while only the interest is "due." 

2. The bulk of long-term returns (often, ideally) come from capital appreciation - not necessarily the rent roll. This is especially true the finer the market is.

I see a lot of different strategies from serial investors I work with regularly, and would be happy to learn more about your finer details as such. Have you sought to identify the general areas being gentrified in this market? A very nice way to grow wealth is to buy amidst a mid-gentrifying neighborhood and "riding the wave" as things appreciate dramatically. Perhaps some high-volume local realtors would have some invaluable insight into this market. Couple that with an interest-only note to lighten the immediate-term financial burden of the investment, we are really looking at an interesting long-term phenomenon.

Now if we are to layer in a light "face-lift" into the equation, we could walk into 10-20%+ equity out of the gate. Perhaps refinance that out and use it as collateral for a second property this/next year.

Very best regards,

Some of my clients are seeing great results by renting weekly rates using Facebook Marketplace. Low price grabs attention, great property retains interest, and creates a good selection of tenants to choose from. It's a nice blend and has been working wonders in a couple different markets.

I firmly believe there's money in any market. I see clients creating 40% equity on renovation projects, renting out for 50% cash-on-cash return, and serializing a dozen properties a year. There's thousands of accounts of different strategies to create alpha. I'd start by looking for "what works" rather than fixating on "what doesn't work." Happy hunting!