All Forum Posts by: Tanner Lewis

aha then yes. i would like to use them as a heloc, and possibly refi depending which route i end up taking. if i end up getting the new 4plex im thinking to use that as a heloc to help build the cabins. also i have a worn down greenhouse that is in front of my familys restaurant and im getting tired of looking at it and want to tear it down and build some units. i would have enough space for 12 1b 1ba or 8 1b 1ba & 2 2b 1ba. thing is that would be expensive but i would be able to be hands on considering its right in front of my store to make it more cost efficient. my dad already has 1 tenant in there on a little building attached to the greenhouse. thing is would tenants find it attractive to live next to a pizzeria? there is a popular weed shop right across from us too. i feel they wouldnt mind considering food/weed would be so close and we'd get business from them too so i can give them discounts. whats your thoughts on this? definitely big project but again im willing to do it. 

 Hey Megan! Welcome to BP and congrats on taking the steps to learn. The sheer volume of information can be paralyzing and slow you down. The advice I give my clients is to follow these first steps: 

1) Meet with an investor friendly agent. You can find these on BP or through your personal network. These are NOT your friends who happen to be realtors that sell houses part time, and it's not a quick Zillow search for "best realtor in my area", these agents need to be ones that work extensively with investors of a wide variety. If you have to, interview a couple until you find one that you "click" with. 

2) Let that agent connect you with their network of investor-friendly lenders. 

3) Meet with these lenders, have them talk over your finances with you and what loan products you would qualify for at the moment based on your income and assets. 

4) Let the outcome of that conversation (#3) dictate your strategy moving forward and take your findings back to the realtor so you can craft a plan. 

A lot of first time investors make the mistake of falling in love with ONE strategy (maybe STR, or multifamily, etc) and then wanting to learn everything about that strategy before they take action. When they finally take action, they hit a roadblock (they need to put down more $ than they had originally planned, or they don't actually love the idea of self managing) then they get shiny object syndrome, bouncing around to different strategies until they hit a wall and give up. Start with the end in mind and have your "team" (lender and agent) help you build your network.

Hope this helps and good luck! 

Hello All and Thank you in advance! 

We currently live in Hot Springs Arkansas and my wife just accepted a position in Jacksonville Florida. I bought two luxury STRs in the beginning of 2022 and they had fantastic revenue for a year and a half until one of my partners needed to get out and we sold them for a good profit in October 2023. 

Are there lenders who will consider my past str track record when determining Debt-To-Income ratio in regards to turning my current house into an income producing property?

It would be ideal for us if we could buy another house in Jacksonville, (possibly do a house hack there), and keep this property as an investment property. It is currently on a conventional loan with over 20% equity. I was looking at the possibility of doing a FHA loan in Florida. I have 800 credit and can put down a nice amount.

Any and all advice will be much appreciated!

@Vernon Huffman

-joining the landlord association isn't silly at all - kudos to you for doing that.  meeting people and going to meetings is actual work, and shows me that you are not in analysis paralysis.  most people want to sit in the dark and look on Zillow and call that 'investing.' it's not.

-creative financing is its own thing.  you can start looking for creative financing deals - i highly recommend seller finance, where the property you're purchasing has no mortgages on it - now, or wait.  they're hard to find, but the more work you put in, the more people you meet, and the more you know what you're doing, the more likely you are to find one. it took me 3 years to find my first.

-there's no issue with financing anymore, or a bank saying 'no,' as there is no limit to how many DSCR loans you can get. they weren't a mainstream product 20 years ago, and now they are. so there is no limit to how many mortgages you can have. i have a mix of conventional and DSCR on my portfolio.

Hey BP Community! 

I'm in the Charlotte NC area, and I've been looking to get into my first property. In the beginning, I wanted the classic small multi family house hack, but have quickly found that that's not feasible with my situation -- they're very expensive and of the few available, they're far from penciling and cashflowing. 

I've adjusted my approach now to search for a SFH with the intent of 'live-in flip' for the first year. After that, I'd refinance and either rent it out or sell/1031 to get into my next property after that that will hopefully cashflow, or I'd rinse and repeat since I have one small rehab under my belt at that point.

I've spent a lot of time researching rental properties and was comfortable with that strategy, but since nothing pencils and I'm pivoting a bit at least to get started, I feel like I'm starting over before I even began. 

Do you have any resource recommendations to learn how to estimate repair costs on a house? How to estimate ARV? Anything to learn more on this strategy?

Also, any advice or tips you have would be greatly appreciated -- I'm eager to learn and finally start taking action!