All Forum Posts by: Stephanie N.

There's an investor/syndicator I follow who puts out really helpful data presentations each year. He is a former data scientist that suggests the data points you should look at in evaluating a market and I find a lot of value in these presentations. I would recommend giving this a read through, starting on slide 10: https://drive.google.com/file/d/1756isvsW-LGMI1yIgWPMZ9lnbb8...

@George Baal I would recommend taking out the HELOC to start but given the high variable interest rate, I would then consolidate that debt into a better financial vehicle. There's something called a Bank on Yourself policy that sounds like it could be a good fit for you. I have one myself that I funded after selling my SF home and once I set up my policy, I took a low, simple interest (5.5% for me) loan that I then used to purchase a 4 unit MF; now I'm using it to fund the renovations. Best part is, my money continues to grow even while I have a loan out due to something called a non-direct recognition loan. This will allow me to pull even more cash flow from it in the future to use for more investments. If this is something you might be interested in, I'd be happy to chat more with you.

Hi Aaron, is the condo not going to cash flow because you'd hire a property manager? If so, I would consider going forward with your plan but self-managing the condo for now for the sake of cash flow. As rents grow (assuming this is in a good area where population and incomes are increasing), you can then bring in the property manager and cash flow.

Hi Dana, congrats on taking this next step! I would recommend finding a property that can work as more than just a MTR so that you have multiple strategies to fall back on if one doesn't work. With that said, I'm doing MTR as well and if you haven't come across it yet, Furnished Finder has a great tool for understanding comps in your chosen area: https://www.furnishedfinder.com/stats

@Justen Ashcraft did you end up finding a definitive answer to this? I noticed the same thing in my loan docs and am curious what the official answer is.

Hello! My boyfriend, @Devon Moore, and I set out on a goal for the year to meet with at least one individual or couple each month who is passionate about their real estate journey. We're generally looking to network more and surround ourselves with more people that are on a similar path.

We currently have 2 properties between the two of us - a three family and a four family. Devon is a licensed real estate agent in MA and building a lead generation business. I am a soon to be certified Bank on Yourself insurance agent and use my own policy to fund my deals.

We're near the NH Seacoast / MA North Shore and would love to meet some fellow investors in the area. Reach out if you'd like to meet us for a coffee!

Hey Joab, getting interested in the idea is a great first step! In addition to reading the books and going to meet ups, I'd also recommend the BP podcasts. Here's why I love some of their podcasts:

- On the Market - gives you a better understanding of the trends in the market, across the US right now. It gives you a good idea of some of the data to search for in your area to better understand the market you're investing in.

- Real Estate Rookie - it's designed for people just like you who are getting started and seeking to understand terms, concepts, and processes...it's like a crash course to build knowledge in real estate

- Bigger Pockets Podcast - this was their first podcast and it contains invaluable examples of other investors, situations they've encountered, and how they got to where they are today. I find this especially helpful to learn from others mistakes (and their successes) so that I'm thinking through the right things on my own journey.

Good luck in building your knowledge! Once you feel comfortable, I would encourage you to jump in and get started. There becomes a point where you're either stuck in analysis paralysis or you're doing the damn thing!

Hi Tate, you have some great ideas there as far as what to do with your current property as you purchase the next. The only caution I would provide is, while you know the market well now, what is the trajectory for your market? Are jobs continue to grow YOY? Is median income growing YOY? Are properties still appreciating at the same rate or are they leveling off? I don't know your market but these are metrics I would begin looking at to determine if this will still be a good market to be in years out.

@Ravi Sivarathri I agree with the comment on umbrella insurance, it's a great first step to help protect you in the event someone sues you. But more importantly, read Brandon Turner's Book on Managing Rental Properties. I read this as a first time landlord and it helped me gain a ton of confidence and also taught me what I can and cannot do. Lots of great advice like knowing what criteria you can base tenancy on and what you cannot. There are also website links in the book to free rental management forms like leases, renewal request forms, etc. Also, consider the laws in the state you plan to invest in - are the laws more favorable to landlords or tenants? I invest in a state that is more landlord friendly where there are more laws on my side in the event anything were to happen. But ultimately, best advice I have gotten is to be a fair and firm landlord and take good care of your properties.

Hi Jacob, I agree with the comments above. Best to start small and gain experience before you go big. Great thing is, you have the capital set aside to fund future deals!

If I were in your shoes, I would do the following:

- set 6 months worth of income aside in a HYSA to save it for a rainy day (this will help shield you if you lose your job, or if something goes horribly awry with your investment properties)

- open a Bank on Yourself life insurance policy (this is a specific type of high dividend paying whole life insurance where you can borrow against the cash value in your policy at any time and the money will continue growing as if you never took out a loan. It's a great way to BE the bank yourself, although you do pay simple interest to the life insurance company until you pay back the loan. This also allows you to buy life insurance at your early age in better health than you will likely be in the future. If you think you'll want a policy once you're married with kids to protect your family in the event something happens to you, then I would recommend thinking ahead and getting it now. Once you buy this policy, set it aside and this can be a financing source you use in the future for more deals.)

-the fun part: buy a property to house hack. You could buy a 2 family and with the new Fannie Mae guidelines, put 5% down on a conventional loan. Buy an existing property and if you find one that needs some love, it allows you to fix it up and force appreciation so that it's worth more in the future but you're getting it for a better price now.

- Start with that one property. Live in it for a year and set the remainder of your reserves aside, ideally in a HYSA so that it is there in a years time when you need it. After a year, buy the next place...maybe a 3 family and house hack again. Putting 5% down and buying a property a year will allow you to acquire properties quickly while still scaling wisely.

Take all of this with a grain of salt, it's solely what I would do in your position. I would also recommend seeking out some mentors to help guide you. I personally use and recommend Tardus - a financial coaching program where you are assigned a coach that works one on one with you to help guide you through your financial decisions. I've found this immensely valuable as it gives you someone to bounce ideas off of while still making all of your own decisions and having control over your own investments.

Phew, that was a lot. Feel free to message me if you'd like to talk further about any of this. Best of luck on your investment journey, you're certainly starting on strong footing!