All Forum Posts by: Patrick Rhodes

Brandon,

It sounds like you have an amazing set up going for yourself. Because you need the cash to continue on investing and have the desire to get another property, I would look into a HELOC ( Home Equity Line Of Credit). This would allow you to keep your current mortgage with that killer rate and borrow against the remaining equity in the home. A typical HELOC would allow you to borrow 75-80%. You are only charged interest on the money while you are using it.

I would start by talking to a local bank.

Hope this helps.

Great way to find a deal. One resource that you can use is www.fastpeoplesearch.com Type in the address and they will give you public record of phone numbers. You can also have a local realtor pull the tax card and that will have a mailing address. Best of luck

Steven,

Great question and situation for discussion. I do have a few questions that may help in figuring out what is best for you as that is different then what is best for me or anyone else giving advise.

In your post you spoke about "Cashflow" and a "1Million" Goal. What is more important? From your answers to other comments on here I would believe that there is a fear of losing the cashflow. 

What do you feel that market is going to do in your area over the next 1,5,10 years?

How does scaling your debt make you feel? Are you okay with having all of your properties highly leveraged or does that stress you? Would you rather less properties paid for or with low balances?

Personally, I would do the HELOC and get into another property. If that next property has the means to cash out and pay off the HELOC with in 18mnths. If it is longer then that I would do a cash out refi on the first property and buy the next investment.

Hope this helps.

 That is 100% possible and probably the best way for the highest return on your investment.

My first BRRRR was purchased for 62k and I put 70k remodel in it. I took private money of 105k up front which means I only invested 27k. After 8 months I refinanced 209k. this profit launched me in to the next several deals. Best of luck..

One last thing.... I would view it as you are starting your investment career today! You may not buy your first property until 1 year later but you are an investor today! 

 It comes from the book " The 12 week Year" by Brian P Moran. It is based on the premise that if you only set annual goals that you typically either go hard after the goals in the last 1/4 or procrastinate so long that then you give up. With the 12 week year you are always up against the clock. 

As for the format: I create a SMART plan and then break it into weekly task/check points. That can then be broken down into daily if needed. It takes a BHAG and turns it into a manageable next step.

I typically work 3 goals per 12 week plan that are focused on achieving a the BHAG that is overarching.

It is my BHAG to increase my rental units from 1-10 units this year. I am currently at 4.

I have spent a great deal of my investment funds/proceeds on 3 flips and 2 new constructions as the opportunities presented themselves. This should allow me to take down a 4-20 unit in the last quarter of the year. 

I wish all the best.

I agree with previous commenters about doing a live in flip/extended BRRRR. After doing this 5-10 times over the next decade you will be amazed at how far your financial situation has grown. Best of luck

The Following is just my opinion as there are not a lot of details in the post....

If it were me, I would flip the Manufactured home and put the proceeds towards a BRRRR that you want to keep long term. I am sensing by the wording on the post that manufactured homes is not your ideal strategy. It is okay to use multiple strategies but make sure they feed into your end goals and not just get you in the game.

Hope this helps...

Great Question and Thank you for not wanting to have slum lord conditions.

However, you would have to honor the lease in place unless the current tenants agree to break the lease. Is the lease term far out or could you wait for that to be up after closing? Will the seller offer them Cash for Keys and you take it over Vacant? Are you comfortable with both sides being vacant at once or is it smarter to remodel one side at a time?

Also it is typical for tenants to not want to show their home. It could be out of fear of change ( you want them out) or sometimes embarrassment.

Hope this provides more thoughts as no one can answer for you because your situation and goals are unique to you.

One thing that I always do is over improve because I feel the same way about slum lord conditions. I have not lost money but 100% could make more money by doing less. 

Keep up the work. you will be great

What is the company that you are working with? How far is their reach on getting off market deals?