All Forum Posts by: Richard Swift

@Richard Swift it sounds like your trying to over leverage. You already did a home run deal there is no reason to try and leverage it to the guilt when the market is as sketchy as it is right now. Keep that equity as a buffer incase the market drops and let pay down do its job. Save all you can and look forward to the next deal, starting out is the slower days remember everyone says it's like a snowball that starts off slow and then starts growing much faster later down the hill. Later down the road you might find a good use for that extra equity that makes sense to pull it out.. deal number 2 probably isn't the best time to try that

@Richard Swift Richard, reading this, I couldn't help but think: wait, what?!!! California? I thought there were NO DEALS in CA! 

So, you were able to go against some naysayers and managed to get a decent deal. Good on you! 👏👏👏

That said, it is not too bad to wait it out a little bit so that you don't over-rush things and go buy something else that might be a dud. 

Take your time to reflect and more importantly stabilize this asset and season the debt before going after another deal. 

It is ok to have balance and strategic thinking in business. 

Great job on this deal and good luck...

You still have a good deal on your hands. My suggestion would be get the other unit fixed up ASAP, rent it out and save the cashflow. I would advise doing that before moving onto the next deal, anyway.

 After a year do the same thing, owner occupy a live-in fixer upper with low money down.

A HELOC (85 % LTV owner occupy) might get you close to your initial down payment back. But is it really worth it at a much higher rate?

I've been doing this for a few years, and honestly, experience is the best teacher. Clearly lay out your expectations. I have found the majority of my roommates through Craiglist. I don't do facebook marketplace, mainly for the ridiculous amount of responses that go nowhere and the amount of people that simply just DO NOT READ the ad.

I live in the house, so I lay out in my ad what I'm looking for. Someone who has a professional job, works during the day, is not a partier/night-owl, no pets, single-occupant only. Make up a list of questions to ask during the showing. Be up front about ANY issues with the house (for instance, I am renovating, and make that VERY clear when I show rooms and in the lease agreement). I have potential tenants submit to a background/credit check (through Cozy) - the PT pays for it.

Good luck!

You should be using Facebook marketplace instead

This way you can screen their profile . Your wasting time on Craigslist and you can’t tell who’s on the other end of the phone