All Forum Posts by: Tori Trent

I have a call with a potential wholesaler tomorrow and I want to know what questions I should ask to vet him and other wholesalers to make sure they are high-quality wholesalers. 

My husband and I are looking to buy our first house hack in Salt Lake to reduce our living expenses and get into the real estate game. This will be our second home purchase but we'd like to start getting more creative with our purchases because of the high prices in our area. 

We are looking into purchasing with a wholesaler to get a deal and an opportunity for forced appreciation through rehabbing a property. We rehabbed our first property and have connections so we aren't afraid of a fixer-upper.

We understand that buying through a wholesaler can be risky because there are no official requirements, regulations, or hand-holding. 

Please! Tell me what I should consider when taking this route. Thanks so much!

We have lived there for over 2 years so we would qualify for the tax benefit. 

Current interest rates are a factor that we are taking into consideration but if a deal makes sense with the current interest rates, we don't have a problem reinvesting. 

We are looking into buying with creative options such as using a wholesaler, putting more money down, and house hacking. We have 3 kids so we would want a bigger home and privacy (not the rent by the room strategy). Our house hack would likely not cover the full monthly payment which we are fine with. However, we want it to at least break even when we move out and rent out all the units. 

My husband and I bought a 3 bed 2 bath house in southern Utah during 2021 with a 2.99 interested rate. We fixed it up and rented it out when we moved to northern Utah. We are charging $1700/month but the property performs within -$100-200 with all the expenses depending on the month. My property manager says that we are already getting the best rates for our area.

However, the property has appreciated over $100,000 in the short time we've owned it. I've been listening to the bigger pockets podcasts and I remember David Greene saying a few times that depending on your situation, if you can hang onto an appreciating asset even if it isn't quite cash flowing that it is sometimes a good move because appreciation builds wealth long-term and eventually rental rates will go up. (One example is episode 534)

We can afford to pay the difference to hold onto the property for appreciation but it seems like maybe there is better ways to use our money so that it both cash flows and appreciates. 

I'd love to hear what more experienced investors, like yourselves, would do in our situation. 

Here are some ideas that we've considered.

1. Keep it, benefit from appreciation and eventually use it for a HELOC for future investments

2. Turn it into a mid-term rental (our research suggested it would not be worth it for this particular property in our area and short term renting isn't allowed)

3. Sell it and reinvest it in a house hack where we currently live (we are currently renting from a relative below the market rental rates but home prices are very expensive where we live. We can save and buy a house hack without the money from the sale but it could help.)

4. Rent until tenants move out then sell it and reinvest long distance. We've read the long distance real estate book and would like to do it in our near future. 

5. Sell it and reinvest in a more medium-term-rental-friendly property in the area. We've also read the medium-term rental book and like this strategy.

What ideas have I missed or is there something I'm over looking? Thank you so much for your help!