All Forum Posts by: Blair Boan

Originally posted by @George Yu:

@Hubert Chen yeah I guess I'm just from a small town in Georgia. I don't understand California prices. My cousin lives in the Bay Area and his house is over $1.6 million for what I would consider a piece of crap. I told him to sell that thing and invested into my apartments in Georgia. Then in five years he could buy three of those in California if he wanted to.... he has yet to do so

George-I live in Greenville, SC-not far at all from you and I’d be more than happy to invest with you all and triple my money in 5 years!!  Would love to chat! 

@Kevin Andre

If I were in your shoes again, I would heed the advice of a few here and house hack. Hard to do with a wife and two kids at 37 but man, to be 19 again and know what I k ow now? Fughettaboutit.

Save as much money as possible. Sell unwanted stuff that you probably have around your place or your parents. Work odd jobs, be creative. Throw a keg party.

Set a goal of $25k in one year. May seem unattainable but just go for it. Keep your eyes out for a multi unit with good numbers and needing some work.

Hack it until you save enough cash for another project.

It’s the best strategy in the younger years in my opinion.

Good luck!

@Tyler Brown

The way I see that is $25k out of $800k of equity.

That’s a 3% return.

I suppose it all depends on where you want this to go from here.

Are you young and want to stretch your capitol as far as possible (like me) or are you older who doesn’t want any debt who’s ok with such a minuscule return?

No wrong answer here either.

I had three fully paid for homes cash flowing great yet I’m growing so I wanted to stretch that 4%, 7% and 8% return into 15-30% if not more.

So I refinanced. And buying more properties.

Do you want to stretch out that capitol?

Think BIG-take that 800k and put it down on a big apartment building in the area!

Good luck!

@Amelia McGee

This is a boring answer and does you no go (in your mind) but it’s 100% about just jumping in.

3 years ago I finally just said **** it, I’m going in and learned so much off that first deal.

It’s the only way. If you are like me I’m sure you’ve read all 65 books but there simply is no substitute for being in the thick of it.

Good luck!

Is there some type of agenda to take a look at?

A few I am assuming is three. If I had $300k, I would do what they call the BRRRR method on here. Buy a house cash, at a good deal. Rehab it and be all in at 70% after repair value. Throw in a good tenant or Airbnb it, wait your 6 month seasoning period (thats the case for me anyway) and then refinance it within the parameters that makes sense to you. I never use Airbnb rents to determine how much I refinance. I always use conservative 12 month lease rates. For instance, a 2/1 that I have on a 12 month lease rents at $1320/mo yet my 2/1 that is on Airbnb does a bit better at around $1800/mo on average. I will not base my refinance off $1800, I will base it off say, $1300. I just feel more comfortable with that. Personally I would pull out an amount where my mortgage would be roughly around $600-$800 which would leave me $700-$500 for Maintenance, Repairs, Vacancy, CapEx and cash flow.

This method allows you to churn your money and get more bang for your buck.  

Conversely you could buy 3 homes cash and cash flow fairly decent, yet your ROI will be very unappealing but that may not matter to you. Depends all on where you are in your career I suppose. For me, Im growing, so I need and want the best ROI I can get. Currently I am refinancing two properties that will essentially put me at an infinite return on both deals. Meaning I will have no money of my own tied up in the deals yet still get to keep the asset, with the cash flow, with the tax benefits and with the tenants paying down the loan.

Lol, Or you could use the $300k as a down payment on a much bigger property and jump in the multi family space. I personally would do that at this point in my career, because Ive got all the SFR's cash flowing and pretty much cashed out ready to deploy on a bigger scale, but again, I just don't know where you are. Thats a big piece of it.

But if we can assume you did happen upon $300k, you are sitting in a much better position that most starting out and thats for sure.  The biggest step is the fist one.  Jump in, make mistakes, learn.  Its the only way.  Good luck.

@Jonathan Yeh

Depends on what the sum is. Is it a million? If so I’d probably put 200k down on a $1M apartment type spot, cash flow somewhere in the 10k/month ballpark, set up my kids education fund, pay off my primary (because if it’s $1M then what’s 200k) and then probably sit on $300-$400k so when the bottom falls out again, I will be ready to scoop up properties.

If it’s $50k, then I may just pick up a junker, rehab it, refinance it and recycle my cash to another property.

Fun to think about though. But - the faster (in my opinion) you can get to a bigger multi family property, the faster you can build. Go exponentially as they say. Not laterally. Im 3 years in my own journey. Started with a SFR, then another. And another. And another. And another. And then a triplex. The triplex has one tax bill. One roof. One lawn. But throws off 3 rents. My goal going forward is to grow to more doors under one roof. It just seems more efficient.

Good luck!

Realtor here in upstate SC. Always get an inspection. Unless you are a builder and know what to look for. And, I had the same issues buying my first one. If the number work and I mean work for you, then it’s a good deal and go for it. If you are fudging the numbers to try and make a good deal, then don’t. Just my .02 though-three hours away on your first one may be bold. Good luck on it though.

Abdul - is this still available?

Gaston. This is Blair Boan here in Greenville. Would like to view it on Friday if possible? 864.313.1876 Thank you sir.