All Forum Posts by: Jason Larson

Hello all! I'm also looking for off market deals. I saw this post a couple of weeks ago. I joined that WAREI group on FB. I've only seen a handful of deals and none of them making much financial sense from a buyers standpoint. Even then, the group is saturated with investors swarming every post competing for bad deals. It's a rough market right now for off market buyers even if you are a cash buyer. Almost feels like I need to become my own wholesaler but keep the deals.

@Tom S.

Can you further explain "doesnt report to personal credit" ?

@Shiri Manor Nisenbaum

Not sure if you're aware of it but the first picture of your home on Redfin is of the attic, from the second picture on is in order.

Everybody's comments so far are pretty much spot on IMO. If it were my home, I'd pay for professional photography, repaint the front door a warmer less aggressive color, stage the property, and drop the price another $9,475 if you really want to sell it quickly. If your realtor hasn't previously brought up any of these concerns and isn't willing to accommodate your requests to fix the listing, then I'd try and get another agent.

https://www.redfin.com/GA/Decatur/2690-McAfee-Rd-30032/home/23730799?utm_source=android_share&utm_medium=share&utm_nooverride=1&utm_content=link

This is a great example of what you're up against as far as competition goes. If you were buying a house, which one would you want?

Not trying to be rude or hurt your feelings, just one man's opinion. Hope that helps, best wishes.

@Basit Siddiqi

Thank you for your response. 

As I understand it, I pay no capital gains tax on the sale of a home that I've lived in for 2 of the last 5 years. $60k on a cash out refi would leave me at 80% LTV cashflowing less than 200 per month not including capital expenditures and maintenance. It would be more cost effective to HELOC the $60k and keep my 3.875% loan on the property. So this is the problem I'm faced with. Pay to use the equity and hope it's going to be accessible for the next 10 years. Or sell and get the whole $100k+ now, then BRRRR and stack it into multiple properties and greater cashflow. Hashing it out here so far has lead me to believe selling is the highest and best use. I am open to any and all ideas. Can anyone convince me otherwise?

Thanks Joe! I appreciate the input and encouragement! 

Hello,

I need a little help from a few of you seasoned investors. I bought a 3/1 house 5 years ago right before the market started to recover, put about $25k into the rehab and If I sell it, I can walk with at least $113k that I could use to BRRRR other properties. OR.... I can keep it as a rental that I would self-manage pocketing around $550 per month in cashflow, conservatively. It would take me 15+ years to make $113k from the monthy cashflow not including capital expenses and vacancy if that's even a viable way to look at it? I'm also concerned that I would be throwing away a good cashflowing property that I got into at the right time before the market took off, one that I may not be able to duplicate so easily, definitely not from the MLS anyhow. I can't decide which would be the better route to take and I keep flip-flopping back and forth. If I keep it as a rental and I'm able to find good long term tenants, I can continue collecting cashflow and take out a $50k Heloc that I could use to fund BRRRRs. But I'd be paying to use that money vs just using my own cash. Also if I want to avoid paying capital gains I'll need to sell in the next three years. So if the market does decline not only will I miss the opportunity to cash in tax free at the peak of the market but I might not even be able to access the money in my Heloc for long if the market declines enough. This home is located in a C to C- neighborhood that I'd rather not live in anymore. I also don't plan to buy in this area in the near future unless it was the only deal I could find that made sense in a 60 mile radius assuming I can find good tenants for the first deal and I was confident that I could keep duplicating those results. We also want to move closer to work as my wife and I have 90/45 minute commutes both ways. This rental would be 15-30 miles way out of the way from my next target area where I'll be living and actively looking for deals in. So it makes sense to exit the property. I just got my realtors license and can list the property myself. I also have a solid lease built and have read enough property management books to feel alright with getting my feet wet in it and that's the plan for our future properties anyway. I just can't come to a conclusion as to which is the smarter path to take?! Option 1: getting out of this less desirable area with plenty of cash in hand to fund more deals right away. Or..... Option 2: owning a cashflowing property in a C- neighborhood but having to sacrifice a decent amount of that cashflow to access equity in order to fund BRRRRs. Today, Right Now, I am leaning more towards option 1.

Help!

Thanks,

Jason

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@Ryan Ingram

This is all great information, thank you!

@Dustin Burke I was involved with WWDB/Amway for a period of time and can answer any questions you have. I'm both thankful for the time I spent in the business and thankful that I'm no longer involved. You can message me directly if you want, I'd be happy to help.

Hey Vincent, I am in the same boat as you, looking to get into investing with as little out of pocket as possible. We just finished a cash out Refi on our primary residence, and took out enough to pay off the rest of our debt and now we have a decent chunk left over to put down on our first investment property. Our plan is to buy a 4-plex and live in one of the units, this way we can utilize an FHA loan which only requires a 3.5% down payment. I'm hoping we are able to cover the mortgage completely with rents from the get go, and then add value to raise the rents and cash flow while living there. In our particular financial position this seemed the quickest way for us to pay off consumer debt, student loans, etc. while also getting us into the investing game without having to save up a huge 20% down payment. I did look into getting a personal loan to use as a down payment, but my mortgage broker advised against it. One other avenue I want to pursue is the BRRR method: buying run down properties with hard money loans, rehab them, rent them out, and if done correctly there will be enough equity to refinance them and cash flow. Hope that helps you bud. -Jason

Welcome! I stumbled upon BP by chance also. This is an awesome community, enjoy!