All Forum Posts by: Stevan Stojakovic

Well, using an FHA loan to house hack could be a smart move. After one year of occupancy, refinancing into a conventional loan can remove PMI if you achieve 20% equity through appreciation or principal paydown. If you're considering BRRRR, the FHA 203(k) loan could work for bundled purchase and renovation, but it's often simpler to use personal funds for lighter rehab projects.

You could focus on properties with strong rental potential and manageable upgrades to increase value. Always have an exit strategy in case refinancing takes longer than expected, such as optimizing rents or reducing expenses.

Best regards, Stevan

Ready to dive into the world of Fix & Flip real estate investing but unsure about how to finance your projects? Whether you're just starting or scaling up, understanding financing options is key to success.

In this animated video, we cover:

• Hard money loans and private lenders
• Budgeting tips for renovations
• Strategies to maximize profits

Financing doesn’t have to be complicated! Learn how to secure funding and turn distressed properties into profitable investments.

🎥 Watch the video: 

PS. If you’re looking for personalized financing solutions, feel free to reach out at: [email protected] or apply directly at: http://phoenixfunded.com/

Let’s build something great together!

Congratulations on starting your real estate journey at just 19! Beyond the foundational advice others have shared, there are a few critical areas to focus on. First, think about asset protection and consider whether holding your property in an LLC or similar entity might provide liability advantages—consulting a real estate attorney can clarify your options. Additionally, take time now to build relationships with reliable vendors and contractors; having a go-to network for maintenance issues will save you time and stress. On the financial side, work with a CPA who understands real estate to optimize your tax strategy, especially for deductions like depreciation and expense write-offs. Networking is another powerful tool—engage with local real estate groups and seek mentorship to accelerate your learning and build connections that will support your growth. Finally, define your long-term investment strategy, whether you're aiming for cash flow, appreciation, or a combination, so that each decision aligns with your bigger goals. Starting so young gives you a tremendous advantage; with the right planning and focus, you'll be well on your way to long-term success.

Best regards, Stevan

One thing we, as humans, are consistently bad at is predicting the future - especially when it comes to political and economic shifts. That being said, we might see continued focus on business-friendly policies, particularly in sectors like real estate and construction.There’s been discussion in the past about indexing capital gains taxes to inflation or lowering capital gains tax rates further. Opportunity Zones 2.0? Focus on cash flow, leverage financing smartly, and structure your deals to remain flexible under varying tax conditions. For those looking to scale their portfolios, now might also be an excellent time to secure funding. History shows that opportunity often thrives in times of change.

Best regards, Stevan

You could explore niche strategies to stand out. Consider emerging short-term rental markets, targeting areas like secondary vacation destinations or work-from-anywhere hotspots. Think lakefront properties in small towns, destinations with new attractions (casinos, amusement parks)...

Another idea is investing in properties suitable for accessory dwelling units to create dual-income setups, especially in cities with relaxed ADU regulations.

Land flipping near growth corridors or participating in real estate syndications could also offer a lot. Specialized rentals for corporate tenants might provide steady cash flow with less competition.

Best regards, Stevan

Curious about how to get started in the lucrative world of fix-and-flip real estate investing? Check out this educational video we’ve put together on the TOMTDKA YouTube channel!

Whether you’re new to real estate investing or looking to sharpen your strategies, this video is packed with actionable insights to help you succeed.

👉 Watch it here: 

PS. If you’re looking for financing solutions for your next fix-and-flip project, feel free to reach out at [email protected] or directly apply here: http://phoenixfunded.com/

Let us know your thoughts or ask questions in the comments below! Happy flipping!

Hi Seth! You mentioned you're reading books on the subject - that's always helpful. Educate yourself on investment fundamentals and understand lender criteria, such as minimum loan amounts and property requirements. Demonstrate seriousness by being ready to discuss specific deals with accurate details. Clarity shows commitment and improves your chances of obtaining funding, whichever property you choose.

Best regards, Stevan

You could focus on entering smaller or less competitive markets where your capital goes further, such as investing in affordable multifamily properties or cash-flowing rentals out of state. Those markets offer affordable entry points into duplexes or single-family rentals that can generate positive cash flow.

Also, creative financing can be your best friend.

Best regards, Stevan

Steven, you've brought up an excellent point about the trade-off between prepayment penalties and interest rates in DSCR loans. It's a nuanced topic that often depends on the investor's strategy and exit plan for the property. For someone focused on quick flips or shorter holding periods, paying a slightly higher rate for flexibility might make more sense. However, if the property is a long-term hold, the lower interest rate with a prepayment penalty can often result in better overall returns.

Another consideration investors should evaluate is how prepayment penalties are structured - whether it's a declining penalty over time or a flat fee - because this can significantly impact their profitability when selling earlier than expected. It’s crucial to run the numbers and consult with a lender who can tailor solutions based on the specific investment goals.

Best regards, Stevan

When thinking about using a 401(k) loan for real estate, view it not just as an access point for funds, but as a strategic part of your overall financial plan. While it’s tempting to see the low-interest, self-repayment setup as a win, the key question to ask is whether the opportunity cost justifies the move. You’re pulling money from a long-term compounding vehicle to fund a potentially higher-risk asset. Can your real estate investment outperform the long-term returns of your 401(k), net of taxes and penalties if something goes sideways?

Another angle to consider is liquidity and flexibility. Real estate investing often demands reserves for unforeseen expenses. Using a 401(k) loan reduces your emergency liquidity, which could make the investment riskier if unexpected costs arise. Instead of tying up your retirement funds, tapping into financing specifically designed for real estate investors can keep your portfolio diversified and your retirement intact.

Leveraging your 401(k) is your personal decision, but framing it within the broader context of balancing risk, liquidity, and opportunity cost can clarify whether it’s the best tool for your goals.

Best regards, Stevan