All Forum Posts by: Trent Dyrsmid

I'm currently working on developing systems for Sub2 lead gen. In other words, how do I find people who have no equity (and a great mortgage) that need to sell?

I'm based in Boise and am very interested in learning more about how to generate leads for buying houses "Subject To". Would love to hear specific strategies from investors experienced in buying this way. Thank you very much!

Quote from @Account Closed:

Quote from @Trent Dyrsmid:

I'm not sure what features I'm looking for yet. In fact, given the success I had on my first commercial deal (bought, rehabbed and flipped an 18000 ft light industrial building and netted $500K in 24 months), I'm not even sure I want to do residential going forward. 

I'm still very much in the planning phase. I'm looking for something repeatable (not sure how repeatable my commercial deal would be) that I can use for the next decade to build equity and cash flow. 

(bought, rehabbed and flipped an 18000 ft light industrial building and netted $500K in 24 months),

Well now, are you braggin' or complainin'?  

Great Job! Congratulations. 

Just continue doing what you were doing and don't mess with success.

Sage advice. Thanks!

I'm not sure what features I'm looking for yet. In fact, given the success I had on my first commercial deal (bought, rehabbed and flipped an 18000 ft light industrial building and netted $500K in 24 months), I'm not even sure I want to do residential going forward. 

I'm still very much in the planning phase. I'm looking for something repeatable (not sure how repeatable my commercial deal would be) that I can use for the next decade to build equity and cash flow. 

I've researching which software application to use to help me grow my SFR portfolio. If you have used any of the above apps, I would love to hear what you love/hate about the app you are using. Thanks!!

Thank you all for your input. My wife and I just did a spreadsheet on the expenses and thanks to the low interest rate, the tax deduction we get on the interest, the loan principle pay down (due to the low 2.78% mortgage) and the AirBnB income....it is actually more economical to say put than to sell, take a huge loss, and then buy a house worth say $700K at current rates. So, we plan to stay put and enjoy the house...and rent it out only when we go camping...which we do 10-12 weekends a year. 

Quote from @Chris Seveney:

@Trent Dyrsmid

How much is it worth? How much of a loss would you take? Can you afford to take the loss?

Building an ADU is an awful idea as you probably will not get that $ back and build yourself in a deeper equity hole

Comes down to either sell it or keep it, and really it’s a personal choice as you either lose a lot of $ now or lose it over time and hope it appreciates some day in the future

We'd lose $500K...so that is not an option.  

In 2019, we bought a multi-tenant light industrial building for $1.3M. It had a great skeleton...but it needed significant amount of work...plus all the tenants were on month to month leases at below-market rates. As we improved the building, we notified the tenants that they were going to have to pay market rents...and ALL of them moved out (they were very angry that we have the 'nerve' to raise their rents).

Two years and $150K of improvements later, we had the building fully leased on triple net leases at market rates and we sold it for $2M. (I wish we hadn't).

So...my question is this...going forward, there are two paths we are considering:

1. Look for another light industrial building (we'd likely have to raise cash from investors to be able to pay cash to make it work now that rates are higher...and we've never raised equity before)

2. Look for single family houses to either BRRR or take advantage of a recent zoning change that would allow us to split larger lots (.25 acre and up) into smaller lots (.08 acre) and then build either duplexes or townhouses on the smaller lots that we'd create.

Obviously, both strategies will work...but I'm trying to decide on something that I can get really good at over the next decade and build signifiant wealth doing.

Thanks so much for your input!!

2.5 years ago, we sold a house we'd owned for two years for $900K (paid $480K) and we used the proceeds to buy our current house in the very best neighborhood in Boise for $1.45M and then we spent another $150K (in cash) on improvements. 

Our mortgage is at 2.78% for 30 years and our mortgage payment (inc taxes and insurance) is $6K/mo. Our monthly income is just over $20K/mo before taxes. 

Last summer, we were away for a few months and we made $25K from AirBnB on this house. This year, we won't be away for the entire summer, so I estimate we'll earn about $12-14K from AirBnB (house rents for about $400/night).

In hindsight, we bought too expensive of a home, and the problem I'm trying to solve is that I HATE having a $6K mortgage payment....but we LOVE the house and the neighborhood.

Options I see:

1. We could sell the house..but it is not worth what we paid, so we'd take a significant loss, plus we'd be walking away from a 2.78% mortgage
2. We could AirBnB it more....but then we have to incur the cost/inconvenience of being out of the house more often
3. We could build an ADU over the detached garage..but we'd have to refi the mortgage and we'd lose the 2.78% rate

When it comes to lowering our house-related expenses, what am I not seeing? I would love to hear your suggestions.

Thank you!

Quote from @Travis Biziorek:

Hey Miguel, I'm also in California but my rental portfolio is in Detroit (12-doors). 

I'm a big advocate of that market and still believe it offers the best risk-adjusted returns today.

Lots of folks are still writing off Detroit but more and more are waking up to the opportunity there. The city is undergoing massive revitalization and investment.

Hi Travis…we live in Boise and the market here went bananas since Covid so price to rent is now quite high. I’d like to start buying multi family so your reply caught my eye. Are there any specific resources you’d point me to with respect to learning more about Detroit? Thanks!!