All Forum Posts by: Ryder Meehan

 Haha, well you were just right around the corner - nice to meet you neighbor!

Yah, as much as central Dallas houses are appreciating I'm a little surprise rent isn't keeping pace at nearly the same rate.  In any case, I'm sure you did very well in appreciation over that time period so congrats to you as well, good sir.

Do you have many MF in Dallas still?  I keep looking but the deals are so few and far between I've put my focus more on commercial the last few months.

I don't by any means think this is anything new but wanted to share for those that may have forgot about leverage equity in an owned property to access capital for the next investment.  This is a powerful tactic that helps to significantly accelerate the speed at which one can grow a portfolio.

In 2012 I purchased my first MF investment property in the Lower Greenville neighborhood of Dallas, TX. The market was still quite low at that time and has since grown like the city has never seen before! This tri-plex was bought on MLS at $210,000 - I put 20% down, $42,000 to purchase this. At the time it seemed like a fortune and it kind of still does! It took me years at my day job to earn that cash savings. As of today it now appraises for $490,000 - with about $25,000 in rehab/maintenance since the time I bought it.

Working with a local lender I'm completing the process of doing a cash-out refinance where they pay off the balance of the original 2012 loan and then give me cash on the difference between what is owed on that loan and the current appraisal - minus 20% equity to remain in the property.  4.75% 30-yr fixed.

I'll be able to draw over $200K in capital that I'll immediately then roll into a large self-storage facility purchase (with a partner) as my half of that down payment.  So if all goes as planned I'll be keeping my cash-flowing tri-plex and adding a 300-unit storage facility all from my original $42K down payment.

Of course I'll be making a higher monthly payment now that my mortgage on the tri-plex has doubled but the storage facility cash-flow can absolutely cover that and a lot more.  At 4.75% 30-yr fixed that is very cheap money - especially when it's liquid capital.  Try to get that at your local payday loan shop or hard money lender.

So I think the point of the story is, if you have owned a property or properties for a healthy period of time and they have appreciated - you may want to talk to a lender about grabbing some cash to put into your next deal.  Just make sure the cash-flow covers the increased loan but any good deal should at this interest rate.

I'll post an update once it goes through but couldn't wait to share the tip!

@Darryl Dahlen I'm also interested, please send details to [email protected]

Great, thanks @Steve Borodin and @Account Closed who I've coincidentally crossed paths with on BP in the past!

Can anyone recommend a great property manager that they have used who covers St Pete?  I'm looking for get some help starting in November at my tri-plex which is already full rented.

Thanks!

@Christopher Moore welcome to BP!  Also thanks for @J. Martin for the Meetup shout out.

As J mentioned, this Meetup is all about REI out of state, I have 14 rentals in Dallas and St Pete and it works for me - many others in the group are managing much larger portfolios in the Bay Area and remotely as well.

As far as building your team, I always suggest picking a market you already at least know or at the very least know someone that would be willing to be your boots on the ground. If it's a new market probably a local REI and/or actively-investing agent would be good folks to know. Then Handyman and property manager, accountant probably somewhere down the list once you have enough assets that need accounting for

 Hi Chris, thanks for jumping in.  We won't spend a large portion of this particular event focused on financing but some future events I may have to ask you to share a little more on that topic.  Hope to see you there, our Meetups are as much of a group discussion as a presentation so if you did want to share some tidbits that would be great.

 This group meets in the South Bay and is great if you are looking for something closer to you: http://www.meetup.com/Bay-Area-Multifamily-Moguls/

Hope you can make it up to SF some time for our group as well one month!

Hey J.

Thanks for reaching out, and I'd love to have you present on 10/12.  I'm sure your experience will be relevant in or out of state.  I will bring a projector you can use if you like to use slides or share anything on screen.

Let me know if you need anything and if you don't mind, I'd like to bill you as a guest presenter for the Meetup event.

Best,

Ryder

Hey all, I'm looking for one or several Short-Term, furnished rental investors who are located in the San Francisco Bay Area to help lead a discussion on this REI strategy. This is simply a community group, typically with 20-40 REI members, attending to share strategies and network. The group is specifically for those living in SF and investing outside the Bay Area.

If you are interested in sharing some of your tactics for:

• Analyzing and buying properties ideal for Airbnb or short-term rental
• Designing and furnishing for short-term rental
• Hosting/managing (especially remotely) your units
• Sharing performance and how short-term rental cashflow compares to long-term rental

The Meetup is October 12 (Wednesday) from 7-8:30PM at the SF Library Chinatown Branch with drinks and networking afterwards.  Please message me if you're interested in presenting!  If you're just interested in attending please RSVP here: https://www.meetup.com/San-Francisco-Real-Estate-Investing-Out-of-State/events/233744007/

If you work for a short-term rental related company we'd love to have you join as well!

Please no blatant pitching for companies or services, this is an unsponsored, community group.