All Forum Posts by: Joey Banasihan

Hey @Christopher Sarter-Soto! 

Great question, and it's awesome that you're thinking strategically about leveraging your equity for your first BRRRR!

Both a HELOC and a cash-out refinance have pros and cons depending on your long-term goals:

• HELOC gives you flexibility—you can pull funds as needed, and you only pay interest on what you use. Rates are typically variable, so keep that in mind if you plan to hold for a while.
• Cash-out refi locks in a fixed rate but resets your mortgage balance, meaning a higher monthly payment. If rates drop in the future, you could refi again, but right now, it’s a higher upfront cost.

Each option carries risk, so it depends on how soon you plan to reinvest and how you want to manage your debt. I’ll DM you—happy to chat more, we talk through this stuff with our clients all the time.

Hey @Brenden Sperl, I did the same thing and I have not looked back. Going through the experience and taking action will add more to your future wealth, then getting stuck in the numbers - CoC or ROI are not set in stone, and they also are just snap shots of what you see today. You got this and good luck!

Hey @Ven Bud, I like how you’re approaching this— you’re thinking beyond just cash flow and considering the full picture. Cash flow is important, but appreciation, principal paydown, and tax advantages are also key factors in long-term real estate success.

Your logic makes sense—if your investment property’s rent offsets your primary mortgage and you’re in a strong appreciation market, it could still be a great long-term play. The key is making sure you’re comfortable with any short-term negative cash flow and have a solid plan for how that property will perform over time.

We work with a lot of Bay Area investors who purchase in Boise for this exact reason. The market here offers strong appreciation, but we don’t just rely on that—we focus on highest and best use. By targeting properties with value-add potential (ADUs, duplex conversions, rent-by-room setups, etc.), we’ve helped investors get much closer to breakeven. Sometimes, it’s about taking reasonable action on a property that has the right fundamentals and weathering the storm—because on the other side, you have an asset that performs really well.

Happy to connect and share more! Either way, I think you’re thinking about this the right way—it’s just about making sure the numbers align with your long-term goals.

Hey @Audrey Sommer, is this in regards to overall condition of the home or highest-best-use of a property for investing?

Prior to viewing with clients, I am usually have an idea of the general area, vacany rates, market rents, and property types that suitable for LTR. From there mechanical and large items are my first priority (water heater, HVAC, roof) - though an inspection gives us more information and those items can be used as great negotiation tools during your due diligence period.  Outside of that, looking for value add opportunities that help maximize rents and understanding immediate needs to turn it over to the a rental (appliances, fixtures, paint, flooring, etc.).  These are all things you probably already know, so hope the viewings went well!

Welcome @Zoe Brennan - something that may be worth looking into at some point is joining a brokerage/team that only focuses on helping buyers and sellers with investment properties. From someone who joinedn an average brokerage to start and then transitioned into a team that specializes in investment properties, I've learned that being a real estate agent won't teach you how to be a better real estate investor. But if your goal is to build a business as an agent that will fund your investments, that is great too - but both will take a lot of time and a lot of patience. You got this and good luck!

Hey @Justin Sherman! I am guessing you are using current market rents for these calculations, but you also said yourself its a great and popular area with rising rents. Since we dont know what will happen in 12 months and this would be a house hack, sounds like there is potential that rents will rise - and if it doesnt rise enough to your liking, then you could stay a little longer. Of course we want to grow and scale, but the beauty of this strategy is the flexibility - don't think that just because you dont cash flow right after you move, it is not a good investment.  Plus, we haven't even talked about the tax deductibles, depreciation, and how the house hack has the potential to off-set your taxes, which is another aspect way of making cashflow (obvioulsy verify with a CPA). We have been house hacking in Boise, property to property for the last 5 years - and they all were not break even or positive after we left, and we have paid monthly out of pocket to hold properties.  We also have gained over quarter million in equity, which is helping us scale and grow faster than cashflow would ever do.  Definitely continue seeking advice from experience realtors and understand your rental market, and make sure you understand the risks involved. You got this!

Hey @Nicholas A. I would keep looking around, if it were me, I would not sign that contract. New agents use that to ensure they can hold on to a client.  Pay attention to realtors who are wanting to provide value and provide resources and make time for your inquiries without ever expecting anything from you in return. Obviously it is always a good idea to respect folks time, but find someone who also has skin in the game, investing where you are investing, can talk about their experiences, and also has built a network of folks who can support you after the transaction as well.  It's fine to work with a newer realtor, if they are also on a team with experienced investors and agents who work with investors as well - as they would have the support and resources to work as a team to help you.  Good luck, happy to talk about questions to ask realtors to gauge their experiences!

Hey @Sipan Y.! Just like any of the investment strategies here in BP, they need to evovle as the market and housing landscape evovles. Its much harder to turn a property around in 6 months expecting to have 100% of your money returned back to you - but if you focus on the right property focusing on highest and best use with an ADU add (like mentioned), in-fill/lot split, or other rehabs - then hopefully a semi-decent property like that will perform like a champ in a few years. The clients we work with who have found success letting us help them find highest and best use of properties, then we manage them for a year, and then pull out 60-70% of their money, and do it again - rather than waiting several years for a home run hit. We have been doing this constantly in Boise as we are such a high appreication market, but still more cost effective than CA. And here the squarefootage of ADUs are included in the overal squarefootage of the home. Anyways, happy to chat more and good luck!

Hey @Anthony Zotto, this question tends to lend itself to be state, city, regulations specific as the rights of tenants/property owners vary, which you probably know. We typically have a specific criteria of contingencies we are putting into place within the purchase and sales agreement to help protect our investor clients from many of the issues that arise when inherenting tenants. Check out this article we wrote, hopefully if can help you in the future. Good luck with the property!

Hey @Anthony Sigala many folks might be optimistic about this rule but the "rule" was created during a very specific and particular time in real estate as a way to help newer investors have a framework on how to approach rental properties without going in blind. We've been helping investors from Bigger Pockets buy in Boise where that rule does not necessarily work - that's because we try to educate them that its more important to take action on an pretty good investment property than waiting around for a "home-run" deal.  Whichever direction you go, be sure to work with folks who understand this and gives you the confidence to take reasonable action - I'd personally take an okay investment and weather the storm for a few years that will eventually perform well, and do that each year - rather than take 3 years to wait for the best deal possible. Good luck with your endevours, reach out if you want to learn more about the coolest market here in Boise haha.