All Forum Posts by: Joey Banasihan

Hey @Kalp Mehta, it just depends on your situation, goals, local market, etc. If you are in a market with market rents that increase year over year, or a market that appreciates well, and you plan on holding it for a long time, then sometimes it works. Everyone has different thresholds of risk and understandings of the benefits of real estate, we can go down a rabbit hole around tax advantages. Some folks situations can allow them room to be in the negative for a year or two, but again it is very specific to everyones situation. 

Hey @Jonathan Rivera, I agree with some of the points mentioned, losing equity for convience and cash flow, with your goals wanting to scale may not be the most adventitious.  Cash flow is great, do not get me wrong, but its much harder to leverage $300 dollars a month on cash flow than it is to leverage 6% appreciation. There are folks who do turnkey differently (including us) where the headache of project management, finding tenants, and all of that stuff is taken care of without paying extra fees. But at the same time, some folks need the stabilization and security that turnkey models provide in order to get started. 

This is a really good post and a lot of great information, but investors reading through this, it is very very very difficult to learn if neighboring homes are section 8, let alone rentals. And by looking deep into this or advising a client to not purchase a property along those lines is an immediate breach of ethical guidelines and violation the Fair Housing Act. Be sure you are not asking your agent to cross these lines :)

Hey @Alba Cheung, I am guessing you have a cleaning team in place, if so, there are low cost, high touch options or high-cost, low touch options. The most immediate thing would be Smart Locks that you can program new codes for guests via Wifi and codes for cleaners (no lost keys to worry about). From here, low-cost would be working with your cleaners on communication, email/text, and creating a shared calendar to track guests check-in and check-out, and then communicating dates/times for cleaners to be there. More hands on work for sure. High-cost option, purchase a software that syncs your STR calendar with the software, input text/email of cleaners, and this will automatically notify cleaners for bookings with check-ins and check-outs, and if they are self-sufficient enough, they will go when needed. Guesty or Hostaway are some options. There are more nuances but wanted to share big picture.

Hey Carlos, seems like this could be a cool opportunity, especially if you have not issue paying that monthly. Have you considered working with a local bank to get an HELOC taken out on that investment property and use that on continue building your portfolio? You will need to do some research with banks who can do that, but they are out there. Not everyone is okay with leveraging a home, but could be a way to use the equity sooner. Just a thought!

Hey @David Sigler, to answer your question, if I am looking through the IMLS with the BP 1% rule, then yes I wont find much success. You could definitely look into off-market avenues, our team works with the handful of folks who do volumne in the treasure valley.  But my team lead and I talk about this all the time, when we bought our first property(s) it didn't look good at all. A few years later, they are good cash flowing properties and will become great in a few more years. On top of that with appreciation and all of the other benefits, Treasure Valley is an awesome place.  But current interest rates are definitely not helping, which means there may be some comprimising for a bit. So it depends on your goals and what you want to accomplish. Anyways, good luck on your searches!

Hey @Erik Reis, I would start with savvy lender who can tell you more about the new 3.5% for multifamily. I am not a lender, but they do want to see a decent amount of cash reserves, which is sounds like you have. I would lean into finding a property that needs some renovations, but maybe use that cash for the other properties to get the best market rents? Talk with a local investor property management and they can tell you were to invest in renovations and hopefully connect you with contractors (or do it yourself!).  This way you can force some equity in on the front end, give it a year to season, and once you move out maybe renovate that place. I think keeping liquity for future rehab, reserves, and next property is smart. Sounds like you are on the right track, find an investor friendly agent who can hopefully help you negotiate some equity on the front end and go for it! You got this!

Hey @Jared Haxton, are you using a investor real estate agent who is well tapped into the investing market in your area?  Also, if you are trying to market investors, no offense but investors are always trying to get a good deal and a big win for them, not for the sellers.  I'd start with focusing on getting a top net, hopefully you are working with a good agent, hopefully they worked it out with you that in your current market this is a good time to list your property and maximize its potential(?)  Current rates do not help your case around cash flow, but I like the strategy you are promoting for room to room rentals. I am guess you have already explored doing a cash out refinance, buying a new home and keeping this as a rental?  Its a tricky place to be for sure, but it started with the realtor in my opinion. Good luck!

Hey @Brian Lloyd Trieu-Mallari! I am not in that area, but when I have been interested or wanting to talk to folks, I message them on Furnish Finder/AirBnB. I would be particular on which property you reach out to, look at ones that are professionally photographed, have good reviews, and are similar to the property you would want to invest with. Then from there you should reach out to them, see if they have investor friendly agent, and if you find a good agent, you should be able to get connected to cleaners, maintenance folks, contractors, and more.  Good luck!

Hey @Lucas Wolf, I will send you message, lets grab some coffee and see if I can help or point you in the right direction :)