All Forum Posts by: Noah Wright

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!