All Forum Posts by: Sofia Komrskova

HELOCS are awesome because you only pay when you need it, but have you considered just doing a cash out loan instead? I know it's not as flexible as a HELOC but as long as your deal flow is good and the tenants are paying the mortgage you won't come out of pocket for it.

That sounds like a bad idea. I know insurance rates have gotten rough these past years but if you don't have insurance all would take is one house fire for you to take a massive loss. Are you having trouble cash flowing with your current insurance ? If so maybe it's time to sell and reallocate. 

Are you able to start investing in your hometown instead? You'll find the most success in a place you are familiar with and where you can build a solid team. It's possible to do out of state investing in Cleveland or Akron, but you need to build a team and start networking with folks here. Cleveland is a great cash flow market but it's tough to navigate from afar. There are a lot of rough areas here that look good on the internet but the reality on the ground is much different. 

I would only do it if you plan on paying the HELOC back within a year by either cashing out or selling. When used correctly a HELOC allows you to do multiple deals over and over again. By wasting it on the DP you tie that money up for years. So if the property is not a value-add or steeply discounted I would not do this.

I have properties in all neighborhood classes. On paper, my C rentals have amazing cash flow. The reality at the end of the year is always much different. I get way more vacancies and repairs. In these neighborhoods it's just much harder to rent the units to somebody who will not wreck it on the way out. My B+ rentals are a different story. I get repair calls maybe once or twice a year, and tenants often stay years at a time. The C rentals still cash flow better, but the difference is marginal and honestly not worth the extra headache. 90% of my gains have been through appreciation and forcing equity through value add. I'm at a point now where I am able to live off of my cash flow, but it took me a lot more units than I thought it would. Honestly if you are trying to retire off the income just purchase value adds in the best neighborhoods you can afford. Rents will increase and you can pull equity out of these homes when they go up in value. 

On the other hand, you can flip in any neighborhood as long as you are buying at a steep discount below ARV.

Have you thought about just converting it back to an unfurnished LTR? If you do a furnished LTR you will still have to worry about your furnishings and possibly consumables/linens if you plan on providing that sort of thing. 

Look on furnished finder for some comparable properties. How large is the property? If you are thinking of targeting travel nurses just know that most of the demand is in the 1-2 BR space. You might try corporate housing by owner, or try getting in contact with some insurance companies for replacement housing, or traveling work-crews, etc. 

Wholesaling teaches you an extremely valuable skill in RE: How to find off-market deals. I'm not sure what you've heard or are expecting, but as with anything in life you generally get out of it what you put into it. 

Working with a turnkey versus trying to find a BRRR deal yourself are two completely different strategies. Ask yourself, do you want to dive into real estate full time or part-time? If it's the latter then don't bother doing BRRRs in this market. I haven't heard of that company, but if you are looking for done-for-you real estate investing then just know that your returns are going to be significantly lower. The easier it sounds, the less you make.

If I were you I would house hack in RI, specifically in Providence in as good an area as you can afford. Almost nothing on the market there will cashflow while you live in it with LTR, so try to airbnb the units or do furnished rooms for rent, etc. Something to beef up the cashflow so you can at minimum live for free. This will also be a training course on how to landlord, and you can see if you like it or not. Also a good opportunity to learn some DIY maintenance and make some contractor contacts,etc.  Are you tied specifically to MA or RI?