All Forum Posts by: Tanner Lewis

That 2 handle rate is incredible. With that amount of equity, I think it is best to sell the deal and roll it into a couple of others with slightly higher cash flow. The $200 in monthly cash flow is a little on the low side for Virginia (I am in the Richmond market), and I assume that is with the 2.375% rate. I think your equity can be better used, even with the higher interest rates. Regardless, I would not pursue a cash-out refinance/home equity loan/HELOC since the cash flow is minimal with your current rate.

The usual ones, like business and economics, always work. Surprisingly, Easy Street Capital has a fair number of science majors (myself included). Just pick one that challenges you and forces you to think critically. I do not see any sociology, psychology, anthropology, gender studies, etc. majors in the real estate field. I did Biology (BS) and Economics (BA) at UVA and now work in lending. Who knew?

Honestly, school does not prepare you for work/investing nearly as much as the extracurriculars you can attend at college. I was social chair and treasurer, and I credit those two positions with giving me 95% of my real-world skills. I also went out and attended meetups. College is not necessarily the end all be all, but it does provide you with ample opportunities for refining a lot of those real-world skills. 

From most of the deals I have seen, a lot of people in Oregon are BRRRRing and can buy deals undervalued and rent them out with solid rental income. 

In my opinion, if you are just starting out, I would prioritize investing in higher cash flow states before investing in a higher appreciation state like California. You should look to have a base of cash flow before you are financially stable enough to be in low/negative cash flow markets like California. At the end of the day, it depends on your investing goals and risk tolerance. 

The DSCR loan is the best loan product for investors looking to use an LLC. With conventional financing, changing the deed over to your LLC after closing is technically a violation of the loan documents.

 Look at market average income, changes in median home price, days on market. A lot of rental property investors look at markets with the median income compared to price to determine markets with strong rental revenue growth. There are numerous numbers you can look at but it really depends on what your investing goals are for. 

I'm in Austin and I see a lot of deals here that do not pencil as an LTR, but do as an STR. Look at AirDNA to see what your projected income would be. STR will be more of a headache, but it does have a lot higher income.

Get an FHA loan for a house hack. 3.5% down, and you can qualify up to about a million dollars in purchase price, but it depends on where you live. You can also use 75% of the other units to qualify you with your DTI. You will need 2 years of work history, but you can use college experience to supplement work history. I am not an FHA lender, but looking for one of these deals myself.

I suggest going into a real estate investing field. I was planning to go to med school, but realized that I wanted to go that route so I could dump earnings into real estate. Instead, I began working as a DSCR/hard money lender and I get daily reps in evaluating deals. In my opinion, if you enjoy doing it in your free time, make it a profession, and you will not be disappointed.

Absolutely get an entity to conduct business with. I can't really speak to the insurance, but I'm sure an umbrella policy will cover most items. I suggest reaching out to an insurance broker for more information.