All Forum Posts by: Timothy Boyd

@Joe Schmitt

Hi Joe. Thanks so much for the insight. I would very much like to learn more about the asset class. Can I connect with you here and shoot you a private message?

@Joseph Cacciapaglia

Hey Joseph. I don't think my wife and I are too keen on house hacking. We actually just bought a SFH primary residence. We wouldn't want to live through a wall from tenants, we have dogs, want some land for the dogs, might end up trying to have kids, etc.

Buy and Hold I like and kind of have it in the same bucket as BRRRR in my mind. I was leaning towards multifamily in that regard just because of spreading the risk and economies of scale.

I work 10-11 hour days 5 days a week. All other time I can dedicate to this mission. I'm pretty handy, good with data analytics, pretty tech savvy. We have ~$60K we can get our hands on to deploy for REI.

Thanks for any insights!

Hi BP community! I am a newbie to REI and am having a hard time deciding on which niche/strategy to pursue in the greater Cincinnati area. I've listened to about 240 episodes of the podcast so far, read quite a few books, and have been lurking in the forums for months now. Below are my thoughts in no particular order on the three strategies I am thinking about focusing on, and I'm sure some of the thoughts are off base. Hoping you wonderful pros can help me narrow things down and call me out where I have a bad assumption. I know that he who chases two rabbits catches neither, so I really do want to buckle down and figure out what to focus on and become good at.

My Why -  I want to get out of the rat race and achieve financial freedom in the next 10 years so that I can travel with my wife and play guitar all day!

Flipping SFH:

- PROS:

o   Higher potential velocity to financial freedom because of larger profits on each transaction.

o   No landlord/tenant issues.

o   I have a tiny bit of experience renovating and restoring houses I have owned, and I enjoy it for the most part.

- CONS:

o   Not really “investing” because you don’t hold any asset. 

o   Not passive at all.

o   Speed is of the essence and I am not sure how quickly I can move while working full time.

o   Transactional and more vulnerable to market swings.

BRRRR Multifamily:

- PROS:

o   Long term wealth building. 

o   Take one initial stack of capital and continue to roll it into more properties as you refinance.

o   Tax advantages.

o   Tenants pay down mortgage.

o   Spreading the vacancy risk in multifamily.

- CONS:

o   Potential for tenant headaches/evictions. 

o   Not passive.

o   Slower velocity to financial freedom as the portfolio is developed.

Vacant Land (targeting tax liens):

- PROS:

o   Passive.  No maintenance other than taxes.

o   Option of selling or sitting on it.

- CONS:

o   Illiquidity.

o   Adding value (running utilities/sewer) is speculative.

o   Unsure if this can be a standalone route to financial freedom.

TL;DR – Newbie trying to figure out which strategy to focus on as I am struggling weighing the pros and cons of each.

Thank you for any insight and advice!

@Calvin Ozanick Thanks Calvin! Great points. Not only would it be out of state, it would also be my first rental ever. Hopefully it can sell near where it was appraised and I can be smart with the next move. Thanks again!

@Dustin Mathenia  Thanks Dustin!  That is a great recommendation that I will definitely try.  Thank you!

@Robert Leonard Thanks Robert! Good point. You guys have me convinced, going to sell it. Thanks!

@Pete Barrow Thanks Pete! No good reason to think the area is very undervalued. This puppy is going for sale in a few months!

@Daniel Holden Thanks Daniel! I thought cap rates were more applicable to multi unit properties?

@Brian Garrett  Thanks Brian!  I think you and Robert both are right in that I should sell it and use that money to invest in something that I am going into with cash flow as the goal off the bat.  Thanks for the time and advice!

@Robert Smith  Thanks for your insight!  Definitely something I need to think about.  We bought it in 2017 for 247.5K, so there is some appreciation already baked in.  I'll have to do some research on the trends, but I would hate to get stuck with it if there is a serious market correction and I'm 2K miles away.  I think you have the right idea of taking the money and starting out with our first investment property closer to where we will end up moving to.  Thanks again for your time, story, and advice!