All Forum Posts by: Paul Wachtler

Hi Nate,

If I were in your situation personally I would take the LOC and buy more rental properties. With that LOC you could buy more than one and increase your monthly cash flow that way. If you were to BRRRR one or more of them then you could refinance and pull your cash back out to invest in more properties.

Your primary house will be there for awhile and you can always add the addition.  But the earlier you find great deals and close on them the more you'll build up your cash flow and equity sooner and faster.

Best,

Paul 

The overall age doesn't always matter as much as the age of the big ticket items.  How old is the roof, the water heater, hvac, appliances, flooring, siding, etc.?  Although with homes built before the mid-70s (I think that's the timeframe, don't quote me on this) you need to check for lead paint and possibly asbestos.

Obviously older homes are going to require more maintenance, but if they've been recently rehabbed and had the major items updated/replaced then it may not need much work in the short-term.

Hi William,

Have you considered a Master Lease Option?  Check out this blog about it from Brandon Turner:

https://www.biggerpockets.com/blog/master-lease-option

If you think the home price is high for now, you could lock in the price in for 3 years or so with this, collect the cash flow while managing the property, and then if in 3 years the place hasn't appreciated you don't need to buy it.  The current owner would still get his regular cash flow each month and wouldn't have to manage the property anymore.  If you don't purchase it after 3 years he can always try to sell it again.

Best,

Paul

Hi Kristy,

If the only problem is the lending, then you could potentially look outside traditional lending.  A portfolio lender at a local credit union, hard money lenders, private lenders, etc.  The interest rates will be higher so you need to factor that into your calculations but they're at least potential options for funding your deal.  If you two knew about the issues in the property and know that you can fix them up and flip the house then the funding shouldn't be a reason to lose your escrow.

Best,

Paul

Hi James,

Did a quick Google search and found this pretty thorough article on the subject:

https://www.certifiedps.com/cps-blog/why-should-i-list-my-property-manager-as-an-additional-insured

If you don't feel comfortable with it then you can always speak with other property management companies in the area to see if they require this as well.  If it's standard in the area then you'll likely have to do that.  If it's not, you can use a different company.

Best,

Paul

Hi Chris,

Not sure if this would work for you personally but house hacking could be another alternative .  You could buy a single family and rent out one or more of the rooms in the house - or even the whole basement level while you live upstairs.  On the BP podcast they've mentioned a few times people turning a den or extra family room into their bedroom and renting out the other bedrooms in the house so they can live rent free.

Best,

Paul

Hi Jefferson,

Hospitals employ a lot of people and other than the top doctors, a lot of the rest of them are looking for a place to rent.  Especially if they're working long hours and shifts, having a place close by could be a huge benefit for them.  I'd recommend finding and speaking with property managers in the area (even if you don't plan on using one) to see how owning a property near the hospital has been for finding tenants and maintaining rent increases.

Best,

Paul

Even in a state wide quarantine, people need a place to live.  Either state would much rather allow people to rent homes to live in as opposed to being on the street.  Even in an economic downturn, people still need places to live and less people have savings to buy so they rent.  Just make sure to accurately estimate your expenses and potential profit and equity.  Like Marlen said, if the numbers make sense then go for it.

Hey Evan, check out David Greene's BRRRR book. There's a couple of sections in there dedicated to cost effective ways of improving a home to improve the ARV and some different pointers on materials too.

Hi Adam,

You should check out David Greene's book on long distance real estate investing. It's made for someone in your exact situation. 

Best, 

Paul