All Forum Posts by: Ryan Short

@Hana Mori I would switch to a new lender ASAP and ask for the appraisal to be switched to the new lender. Identical situation happened to me so I went to a new lender 2 weeks before closing and everything went perfect. That is predatory and not good business practice but some banks think they can get away with it especially with new investors.

@Ryan Short what are your trying to get out of this scenario? Are you trying to help qualify for something with this income or just want to live there while renting it out? You can do anything you want because it is your property just depends on what your are trying to gain from it.

@Lauren Huff you can definitely rent to yourself from your LLC. Business do this all the time. You are just another name on the rent roll. This is a good way to deduct if you are renting the space for your business or the real estate LLC. You most likely will not get owner occupied benefits from your bank though on the loan.

@Darius Wade this all depends on if you want to create another job in flipping or try and create passive income with alot less work involved. Also flipping has alot more tax implications involved than a rental property would. I am biased because I am a buy and hold investor but have done some flipping as well. Flipping can be successful if you have a great team that takes a lot of the work off your back.

I started my investing career with the FHA house hack and did a cash out refi over and over again. I am now strictly involved with commercial buy and hold property's 5 units or above but am very grateful for the FHA strategy.

@James McGovern you can still find value add deals that have substantial value to be added with high cash on cash returns based on your debt and the amount of value added to the deal.

Any property with any interest rate and any cap rate can still have enormous upside with a value add strategy.

No one is buying with negative returns knowing everything is going to get worst in the future. Everyone is buying because they are happy with current returns or future value in the foreseeable future.

@Anirudh Reddy you can definitely do it with the BRRRR method. I was able to do it by starting off with $20k and a FHA loan on a 4 unit. You have to be willing to find value add properties tho. There is a lot more value and cash flow with 4 plus unit properties but you can def do it with the smaller ones as well. I'm Not sure about your area but I know it can be done in alot of areas. I would start off by reading Brandon turners book about rental property investing or David Greens BRRRR book. Both will give you a great start on getting to $10k a month in cash flow in 10 years. 100% doable no matter what anyone says. Good luck and I wish you the best in your goals.

@Peter Nikic I was in a very similar situation. I reached out to an off market seller for a 9 unit property in late 2020 and he wanted $900,000. I did not want to pay this inflated price and was naive. 2 years later I purchased the same property for $1.2 Million and nothing changed in those 2 years besides everything appreciating and cap rates compressing. This is a value add property and I pushed the NOI and value of the property close to $2 Million. In the end this deal was def worth it for me, just make sure your deal hits all of your buying criteria. Property values have been going up 10-15% in most areas YOY so this is not unheard of. Just make sure you have multiple exits, if the market crashes you will not be able to refinance. As long as it cash flows you can just hold it for the long run. Best of luck!

@Anthony Liguori I have almost the identical e situation with my property I bought 6 years ago. I purchased my property for $345k did a cash out refi and pulled $100k. Now I have a loan of $410k, I am selling for $770k. I anticipate I will pay about $70-$80k in closing cost fees, agent fees, and about $50k to capital gains. I am deciding to sell and use the funds to pay off a private lender for another property I own and using the rest of the funds to purchase another property. In my scenario I am selling my property that is in a C class area and purchasing a property in a B class area with similar ROI. I do not want to wait another 5-10 years to get out of a lower class property when the market shifts.

@Greg Seivert I am in a similar situation on one of my properties. I am choosing to sell the property because of the amount of equity I have in my property. If I do a cash out refinance my property’s cash flow gets cut in half. I did a return on equity calculation and it comes out to 6% return on equity. If you do this calculation this should give you another option instead of just sitting or doing a cash out refi. I know I will be able to beat my 6% return with the proceeds from selling my property. I am also taking the possible market correction into consideration with this decision.

@Axel Ragnarsson amazing post Axel, appreciate the knowledge spread in this post. Absolute gold for any multi family investors out there.

I am on a similar journey at 21 units at 28 currently with no partners. Seller financing and networking is absolutely key to scaling to 100 plus units. Love the content you put out on your podcast and IG, all important valid information for investing in real estate. 🔥💯