All Forum Posts by: Tommy Adeoye

Rather than HELOCing for reserves, I'm assuming you will be moving out in the nearest future and someone is going to have to move in. Have you ever considered rehabbing your current unit or both units  , appraising it and doing a cashout refi ? I  personally, will pay more rent for a place that has newer amenities. 

You could then purchase another multifamily and rehab that with your equity from the old multifamily - if necessary and increase net income. If I have spoken too soon, its simple because I am going off presumptions. It wouldn't hurt to run the numbers.

I understand, People get very uncomfortable entering new territories. The secret is to get comfortable with being uncomfortable. Like another popular REI once advised, the real education is in the process - the success stories, lessons,mistakes.... What's the worst that could happen?

@Account Closed

Although online sites provide information you may be looking for as far as your criteria goes, I have come to realize an go to guide as far as getting accurate information will be a realtor or investor that is well versed with the area you are looking to invest.

An alternative would be to just throw a pin on a map and invest in where it lands - just kidding. Figure your niche , your strategy and sort of reverse engineer it from there. For instance , if cash flow is what you are looking for, then Midwest should be your go to. If rapid and unforced appreciation is also what you are looking at, they have areas for that as well. 

Ever wondered why Dallas, TX , Arizona, Florida are having an heavy influx of green baby investors? companies are moving to these areas and people move with the companies. Now is that going to change after the pandemic ? even if it does, I believe it's going to get even better for investors. 

To answer your other question, people analyze more because profit is made when you buy. 

@Joel Arangorin

Hopefully the other half is well informed about your decision of embarking on this exciting journey. Like you,I am deep in the education phase. When you say BRRR'ing yourself, are you referring to the "Rehabbing" part?

If so, Rehabbing would definitely put money back in your pocket but may require more of your time equity.  If BRRRing is a strategy you are going to stick to for the longest,  it will be the perfect learning opportunity. You could also consider half and half, by that I mean , you take on half the project and your contract the other half. You may also hire a helper on craigslist and knock down the thing yourself and save a ton of money.

As far as the money working - this is where the BRRR calculator comes in. Try to research more about the "70%" rule, if this isn't something you are familiar with. Your profit is made when buying the property. Being a PRO member you have multiple calculation uses , you could calculate as much brrrr deals as you like.

I'm excited for you and one very important tip to leave you with, the more podcasts,webinars,posts, blogs you access on BP, the clearer the vision becomes. Enjoy the ride to financial freedom.

@Jamal Tate

Thanks for giving your question some clarity. You are in a highly competitive market I must say , regardless you can look at the glass half empty or half full. I would not put all my eggs in MLS listings' basket. Real estate deals are made in the buying process and most Californians are very aware they are sitting on a pile of gold.

With that been said, I recommend you evaluate how you can effectively come up with leads, this includes and are not limited to:

- MLS listings - very hard to find a leads , but you just may find an REA

- Direct mail marketing

- Cold call craigslist rentals

- Drive for dollars (online resources may come in handy here).

- wholesalers

Educate yourself on how to find deals and expect to make mistakes . Like I mentioned, your money is made when buying. If you are not aware the exact location you are going to invest in, you may consider an area you are familiar with .

Analyze your deals for cash flow and COC ROI, BP rental property and brrrr analyzing tools are very resourceful . As far as renting your property, here is a little research ; worldpopulationreview.com listed California (Population: 39,747,267) as the number one most populated state country. one person must be looking for a house.

Again, I say to you , this depends on how you see the glass and the massive action you are willing to take to push the odds in your favor. Phoneix would not be bad option either.

@Jamel Tate

I believe that would depend on what part of California , what your niche and your strategy is ? 

If you highly competitive , give it a go . This again will depend in the location and your strategy .

@David Palmer 

Have you considered cross-collaterization ? The downside with that is that you may have multiple properties tied to one mortgage payment but down the road you can always refi one through a different lender.

You may want to inquire from you lender.

@Joseph Po

Remarkable deal. I'm curious, the purchase price was really $75 ? 

@James Price BP has an analysis calculator you can use in the tools section. It's very resourceful and I believe you have access to 5 analysis a day or so as a non-pro member. As for popular websites for looking up rent, rentometer.com ,zillow's zestimate. 

I have found out a better way to determine rent , is shop rental property in the area, enter the criteria spec of your property , this should give you a ball park range. 

@Ryan McKinney - You may have deal in hand. Robert Kiyosaki will refer to the voice in your head as "Chicken little" . Would you rather Remember Chicken little? or "Remember the Alamo" !

There are a few options

- Seller financing : mee if seller will be interested in providing short term financing.  The  worst answer you'll get is a No. What if you get a yes?

- BRRR strategy : may work. If it meets the 70% criteria.

- Partner with an investor on bigger pockets : you would have to bring the hustle, the knowledge and the leg work in that case.

Keep in mind money is made in the buying and negotiation process. 

Frankly, I am beginning to see the value in having equity in a deal, if the price is right. High chances you may be able to access the equity in that asset portfolio for your next deal.