All Forum Posts by: Tom Murray

I'm a big believer is using HELOC as a down payment source...provided the #'s work. We used a HELOC from our primary residence as the down for two investment properties. In our research, we found that there are many different home equity products out there. Equity loans are more "traditional" second positions on your house (often with a fixed rate), and lines of credit (HELOC), while still second positions, are more like revolving credit accounts (pay some down, take more out, repeat) with variable rates. And there are many different options out there as far as terms - generally, LOCs have a draw period and a payback period. During the draw period, there will be some minimum payment required (e.g., interest only, or 1% of balance, or ??).

So I'm definitely a fan, but, like @Eric Schultz said, the thing to watch out for with a LOC is the variable rate.

@Julie Summons and @Roman Lanyak - welcome to BP! I also live in SD, but my partner and I are investing in MFR buy and hold / BRRRR in the Morongo Basin (near Joshua Tree Nat'l Park). Prices are still reasonable, and you can find cash flowing properties.

Best of luck, and let me know if you're interested in connecting.

-Tom

@John Janasiewicz welcome to BP, and best of luck!  FWIW, I found that having a partner allowed me to get out of my comfort zone a bit and work through "paralysis by analysis" and take action.

-Tom

@David Jarvi I assume the sewer tax you're referring to is for Yucca Valley?  Twentynine Palms does not yet have plans for city-wide sewer (although it would be nice).

@Joe Yobaccio, my renters are a mix of military and non-military.  We are signing 12 month leases (although military can break leases if they have to move sooner...haven't had that happen yet, but we know it's a possibility).  And yes, the combination of rents, price points, expenses has yielded positive cash flow.

@Vince Rodriguez - I think, like @John D. says - it depends on the niche.  If you're talking a coastal SoCal duplex, the answer is probably no...it will probably not be cash flow positive (assuming a mortgage on the property).

In addition to looking at non-traditional types of property, there are also some lesser populated areas of SoCal.  If you're willing to open the aperture, the area around Joshua Tree Nat'l Park ("Morongo Basin") has cash flowing, mortgaged properties.

-Tom Murray

@Alisha Bassim - welcome to BP!  Have you given any thought to a particular market to get started in?

Good luck on your journey!

-Tom Murray

@Yusef Griffin welcome to BP!  As you've quickly realized, there is a ton of great info on the website, podcasts, and forums.

I'm also active duty (Navy), and I'm investing in SoCal with a partner.  Would love to connect if you're interested. I'll PM you my contact info.

Best of luck on your journey!

-Tom Murray

@Mark Anderson - just replied to your resources post as well.

My top 3 at this point (18 months in, 2 deals)...

1) Find a partner!  My partner and I agree that our mutual support has been critical to our ability to keep the proverbial train on the tracks.

2) There is money all around you - get smart on how & when to access; pros & cons of each.

3) Treat obstacles & challenges are opportunities to grow, learn, and improve your processes / plan.

Good luck!

-Tom Murray

@Mark Anderson... assuming starting from scratch (i.e., no experience), I'd recommend:

Robert Kiyosaki's book Cash Flow Quadrant - discusses the mindset required to successfully invest in real estate

BP Podcast Episode # 290 - great overview of various investing models / vehicles / methods

Dave Van Horns' book Real Estate Note Investing - great book on financing & money, covering much more than just note investing

So where are you on your REI journey? Best of luck!

-Tom Murray

@John K. - welcome to BP!  As Jim said, lots of good people and info here on the forums and blog posts.  If you haven't already started, I highly recommend the podcasts - super motivating and very informative.

I live in San Diego, and my partner and I had to look a little ways outside SD to find properties that met our goals. We too are interested in MFR buy-and-hold. We're actually working through our first BRRRR now (13-unit complex).

Best of luck on your journey, and let me know if there's anything I can do to help.

-Tom Murray