All Forum Posts by: Raffaele Bruno

So I started putting some rough pencil and paper sketches about whats a reality for me. Assuming I get a 5% raise yearly and increase my 5% savings ($1,500) monthly along with it and use all that money to reinvest in future homes, also for ease lets say each house I buy profits ~$300 a month. Each house needing 30% down before buying another house, not selling or refinancing any of them, not counting equity and never selling, purely renting, and considering they'd each be bought around 350k each. In 10 years, I'd own 4 rentals, 45k in savings and bringing in 14k in yearly profits. 

I can't imagine that being right.. I'm sure I did something wrong trying to get those calcs but I can't figure out what; because if i'm purely renting, home value doesn't matter. Even if I add in an extra 50/month rent increase yearly that doesn't equate to much. So, if those numbers are right(ish).. There is no money in single family home renting. Should I just hold off until I have enough capital to buy 8+unit complexes?

@Brandon Sturgill Ah makes sense, thanks so much! I Just sent you a PM

@Brandon Sturgill I got a notification that you mentioned me, but it shows up as post removed. Not sure if it was a mistake or what happened there, I'm new to how this forum works.

@Jeffrey Hotz

Well it's too late for pictures of the brown cardboard, but when I get home later on today I'll take a picture of the billboard. If it's still even up there, I haven't paid attention to it in weeks, but I did a quick google search and it's the same billboard as you guys advertise.  Maybe someone was just trying to use your name in buying houses for cash? Can't speak too much on it as I never called the number on the cardboard

@Jeffrey Hotz That I did not know, I thought it was just a successful wholesaler because around 18 months ago they had up brown cardboard on freeway exits, a year ago they put up posters on my main street polls, around 8 months ago they put the billboard up.  But I will more then definitely check out the website and learn more about it

@Brandon Sturgill

Well if it were possible, I'd right away jump to a 5+ unit and call it a day. But as you said, I live in an extremely expensive area and anything over 5 units is also in the millions. With a commercial loan I'd need 35% down, so that's just outright impossible for me. I'm sure getting investors is out of the question until I have at least some sort of experience behind me.

I have a rough map in my head, I can afford to buy 1 house a year (FHA) using my own savings. The only HUGE downside to that, is I have to relocate every year and it'll take 5 years before I see any kind of worthwhile profit, assuming everything goes beautifully; which lets face it, wont.

I thought about going out of state, but wouldn't having to pay for property management significantly lower profits? I just feel stuck. I know everyone says the first deal makes it all and I can use my current house as my "First deal" in a sense, but that doesn't change me from being stuck on my second. 

Should I just get a second home and rent whichever of my two homes will be more profitable until I save up enough money for a 3rd home? I'm at a stand-still. 

For the wholesalers, my area is absolutely FULL of those "I buy homes cash" signs, there's a giant building on my street advertising they buy ugly homes in cash. I'm sure those are wholesellers, I'm sure if I call telling them I'm interesting in buying I can get some sort of feedback. The only thing I'm unsure of is if it's even possible while getting a loan or if it is cash only, would it be smart to use the HELOC to purchase it

Hey guys,

I'm a long time reader but new user here, I'm thinking about starting to invest in real estate but have a few questions on how to start. I have a steady job, not looking to leave it. I'm only looking to increase my cash flow by investing in homes and renting them out. I have a few goals set in mind, but I'm not too sure which is the best way to start off.

I currently own a home that I purchased for $365,000 2.5 years ago, spent around $80,000 remodeling it and it was recently appraised for $496,000. I'm living in this home, my mortgage is $2,100 and I can rent it for around $2,400-2,500.

I have $50,000 to invest and can get a HELOC for another $95,000 if needed. I also have 2 brothers, each with around $50,000 that might want to invest as well.

My main question is, can I use a wholesaler if I'm going to be doing a bank loan or is that route strictly cash only?

If that route is cash only, what is my best starting point right now? After paying all my bills, I save roughly $1,500 a month that I'm more than willing to use to reinvest in future homes and whatnot. 

Any and all help will be appreciated, I'm just really confused on where to start.