All Forum Posts by: Ryan Cheek

Hey there!

It’s awesome that you’re weighing both options! There’s a lot of potential with long-term rentals, especially if you already have strong opportunities in your area. They tend to be lower maintenance, and the steady cash flow can be a great way to start building your portfolio.

That said, vacation properties can be lucrative too, especially in high-demand beach areas. However, the short-term rental market comes with added complexities like managing turnover, dealing with seasonality, and ensuring you comply with local regulations. If you’re just starting out, a long-term rental could be the safer bet for consistent returns and lower management hassle.

On the other hand, some investors prefer out-of-state opportunities for better cash flow and affordability. For example, I work with investors looking into new construction duplexes in Indianapolis, which offer solid rental returns and less upkeep compared to older properties. If you're considering diversifying outside your local market, that could be worth exploring too!

Let me know if you want to chat more about these options or would like help mapping out a strategy that fits your goals. Best of luck with whichever path you choose!

Cheers,
Ryan Cheek

Hey there!

Great to see you taking the first steps toward real estate investing! 2024 has a lot of opportunities for newbies, but finding the right area can definitely feel overwhelming. From my experience, starting with long-term rental properties is a smart move, especially for those looking to build wealth steadily over time. Multifamily properties, like duplexes, can be particularly appealing because they allow you to live in one unit and rent out the other, which helps with covering the mortgage while also generating income.

Another option is to invest out-of-state in markets where property prices are more reasonable but still offer great cash flow. For example, Indianapolis is a market that’s been attracting a lot of attention from investors lately because of its affordability, solid rent returns, and growing population. I work with new construction duplexes in Indy that are a great fit for investors looking for turnkey options without the headaches of major repairs.

Feel free to reach out if you'd like to chat more about how to get started in 2024 or explore some out-of-state options. I’d be happy to walk you through what’s worked for me and others starting out.

Best of luck on your journey!
Ryan Cheek

Hey there!

I've had similar experiences with insurance companies inspecting my rental properties after purchase and making specific demands like repairs or adjusting deductibles based on their findings. It's definitely a frustrating part of the business, especially when you're trying to maintain cash flow and unexpected repair costs pop up.

One thing I've learned is that some of the more real estate investor-focused insurance companies tend to be a bit more lenient on inspections or are more upfront about their requirements before binding the policy. It might be worth looking into specialized insurance providers that cater more to investors with rental portfolios, as they usually understand the nuances of long-term investing and tend to be more flexible.

Also, if you're investing in certain markets, like Indianapolis, where property values are lower, you can sometimes balance these insurance hiccups with much better returns on your investments. For example, we work with new construction duplexes in Indy that not only have lower insurance costs but are also brand-new properties, which means fewer surprises when it comes to inspections and repairs.

If you're ever interested in diversifying or looking at markets that might offer you better returns and fewer insurance headaches, feel free to reach out! I'd be happy to chat about how we handle insurance on our new builds and what might work for your portfolio.

Cheers,
Ryan Cheek

Hey there!

First off, congrats on starting your real estate journey and already owning your first rental! You're in a good position to expand, and I love that you're focused on building an equity-heavy portfolio for long-term cash flow.

From what you’ve shared, it sounds like you’re debating between holding onto your current property in Corpus Christi or selling to reinvest locally in Houston. I’d say there are a couple of routes you could consider:

1. HELOC or Cash-Out Refi: With your current property valued at $245k and a mortgage balance of $163k, you’ve got some solid equity built up. Since your interest rate is favorable at 3.375%, doing a cash-out refinance might allow you to pull out some capital without selling the property. This could give you the flexibility to invest locally in Houston or even in a different market that offers better cash flow and growth potential.
2. Diversifying Out of Your Local Market: If Houston’s average price point is around $314k, and you're looking for something in the $250k range, you might find it difficult to meet your goals without putting down a significant down payment. One option to consider is investing out-of-state where property prices are lower, and returns are more favorable.

   For example, Indianapolis is a great market for cash-flowing properties with lower price points. You can find new construction duplexes in the $400-450k range, offering strong rental returns with solid growth potential. These types of investments could help you hit your goal of expanding your portfolio faster and with less capital compared to your local market.

3. Leveraging Your Real Estate License: Since you have a real estate license, you’re in a great position to find off-market deals or help yourself with transactions. This can be a huge advantage, especially if you’re looking into fix-and-flip strategies or even short-term rentals to generate quick equity.
4. Mentorship: Connecting with an investment group or finding a mentor might be helpful as you navigate financing options and new strategies. A mentor could provide insight into what’s worked for them, especially if they’ve gone through the process of scaling up with similar goals.

If you're interested in discussing this further, I specialize in helping investors like yourself find value-add properties, and I'd be happy to share some insights about the Indianapolis market that could align with your goals.

Best of luck on your journey—feel free to reach out if you'd like to chat more!

Cheers,
Ryan Cheek

Hey there!

It sounds like you’re on a great track with your strategy to scale up and maximize the value of your properties. Transforming SFHs into multi-units and targeting 2-4 units for value-add potential is a smart way to build your portfolio, especially if your goal is to qualify for larger loans down the line.

If you're aiming to hit the 5-unit mark and unlock better financing options, here's something to consider:

1. Leveraging BRRRR Strategy: You're already thinking about the refi route, which is key. If you can build equity and pull out cash through a BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy, that could get you the funds you need for that larger down payment on a multi-family or HUD loan. Just make sure to keep an eye on those rehab costs to ensure you're leaving enough margin for your cash-out.
2. Alternative Financing: Getting into a larger commercial property can be tricky, but sometimes partnering with investors or syndicating deals can help ease the capital burden. If you find a deal with solid cash flow, partnering up might give you more flexibility while still allowing you to control and operate the property.
3. Out-of-State Opportunities: If the local market makes it tough to find larger value-add properties, you could consider diversifying into other markets with lower barriers to entry. For example, in Indianapolis, there are new construction duplexes priced at around $400-450k with strong rental returns. This could allow you to get into a higher cash-flowing property without needing that massive down payment you're talking about for a HUD loan.

If you’re open to discussing this further, feel free to connect—I work in the Indianapolis area, and we specialize in helping investors find value-add opportunities in growing markets. It might be worth chatting to see if it aligns with your goals.

Best of luck in your journey! Let me know if you want to brainstorm ideas.

Cheers,
Ryan Cheek

Hey there!

It sounds like you’re on a great track with your strategy to scale up and maximize the value of your properties. Transforming SFHs into multi-units and targeting 2-4 units for value-add potential is a smart way to build your portfolio, especially if your goal is to qualify for larger loans down the line.

If you're aiming to hit the 5-unit mark and unlock better financing options, here's something to consider:

1. Leveraging BRRRR Strategy: You're already thinking about the refi route, which is key. If you can build equity and pull out cash through a BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy, that could get you the funds you need for that larger down payment on a multi-family or HUD loan. Just make sure to keep an eye on those rehab costs to ensure you're leaving enough margin for your cash-out.
2. Alternative Financing: Getting into a larger commercial property can be tricky, but sometimes partnering with investors or syndicating deals can help ease the capital burden. If you find a deal with solid cash flow, partnering up might give you more flexibility while still allowing you to control and operate the property.
3. Out-of-State Opportunities: If the local market makes it tough to find larger value-add properties, you could consider diversifying into other markets with lower barriers to entry. For example, in Indianapolis, there are new construction duplexes priced at around $400-450k with strong rental returns. This could allow you to get into a higher cash-flowing property without needing that massive down payment you're talking about for a HUD loan.

If you’re open to discussing this further, feel free to connect—I work in the Indianapolis area, and we specialize in helping investors find value-add opportunities in growing markets. It might be worth chatting to see if it aligns with your goals.

Best of luck in your journey! Let me know if you want to brainstorm ideas.

Cheers,
Ryan Cheek

Hey, congrats on converting your previous residence into a rental! Holding onto that VA loan at 2.75% is a great call, especially with today's interest rates.

Regarding your next steps, it sounds like you’ve built a solid foundation and now need financing options that won’t disrupt your cash flow. Here are a few ideas to explore:

1. HELOC Strategy: You've already got that HELOC lined up, which can be a great tool for down payments on new properties. One strategy could be to use it to secure an investment property in a lower-cost, higher-cash-flow market—essentially, using your funds to maximize returns without tapping into that 2.75% loan.
2. Creative Financing: While seller financing can be tough in some markets (especially where sellers still have mortgages), you might want to explore subject-to deals. In this strategy, you take over the seller’s mortgage payments while leaving the loan in their name, without triggering the due-on-sale clause. It’s a more niche option, but it can work if you find the right seller.
3. Out-of-State Investments: I know it can be frustrating trying to find deals in pricier markets, but investing out of state might be worth considering—especially since you’re already managing a property remotely. In markets like Indianapolis, you can find new construction duplexes with solid rental returns at a much lower price point, often in the $400k range or lower, with better cash flow than many coastal markets.

I work with Neu Real Estate Group, and we specialize in new construction duplexes for investors, specifically designed to maximize rental income. We help investors like yourself secure properties with solid returns, without needing to give up great interest rates or cash flow on their current properties.

If you're open to exploring the Indy market, feel free to reach out. We could chat about some options that fit your goals.

Good luck on your journey—feel free to hit me up if you have any questions or want to brainstorm some more!

Best,
Ryan Cheek

Hey, congrats on getting ready to dive into real estate investing! With $100k saved up and your brother’s income, you’re in a solid position to make some moves.

To address your questions:

1. Investing Route: Since California’s market is tough for first-time investors, out-of-state properties can definitely offer better opportunities. I’d suggest focusing on markets with strong rental demand and more affordable entry points—places where your $100k down payment can stretch further and still offer good cash flow.
2. Timing: Interest rates are higher right now, but that shouldn’t necessarily stop you from investing. In my experience, if the numbers work and the property cash flows well even with today’s rates, you’re setting yourself up for long-term success. You can always look into refinancing if rates drop later.
3. Property Type: Multifamily properties tend to offer better cash flow than single-family homes. Duplexes, triplexes, or small apartment buildings allow you to generate more rental income while spreading the risk across multiple units. Plus, you’re leveraging that $100k down in a way that gives you higher returns.
4. Out-of-State Investing: While it can seem risky for beginners, it’s doable as long as you approach it strategically. The key is finding the right market and building a team you trust—this could include property managers, contractors, and real estate agents who know the local area inside and out.
5. Forming a Team: Building a team for out-of-state investing is crucial. Start by researching local agents who specialize in investment properties in the markets you’re considering. A good agent will help you analyze deals and even introduce you to other professionals like property managers and contractors.

If you're looking for high-potential markets, Indianapolis is one to consider. I work with Neu Real Estate Group, and we focus on new construction duplexes designed specifically for rental returns. Our properties tend to attract out-of-state investors, and we have a team in place that takes care of everything from acquisition to property management. Feel free to reach out if you’d like to learn more about how we help investors succeed in markets like Indy.

Good luck on your journey, and feel free to ask any questions along the way!

Best,
Ryan Cheek

 Morning from Indianapolis

I have heard lots of great things about the Ohio market. I am an investment friendly agent in Indianapolis as I have lived her most of my life. I think investing in the Midwest regardless is a great call as you can buy alot more properties out here v the coasts. Good luck!

 Morning from INDY

Please PM me and I would love to connect. Have everything from off-market new build MUHs to our managing broker that has done over 1,200 fix and flips. 

Good luck on your investing journey sir!