All Forum Posts by: Trevor Finton

@Shannon Vistisen, I assume you have a primary residence presently and need cash to purchase an investment property. I have used a HELOC from our home to purchase 2 separate long term rentals (two different times). I used it for purchase and rehab then secured long term cash out refinance to get all my money out. Like others have said the rate varies but it has been within a very narrow range for me. With my bank I have interest only payments for whatever amount I am using (just upped it to $230k but with zero balance I'm obviously not paying anything at present) for 10 years then would need to start paying down principal. If you have a good deal where you can force appreciation and keep costs in line it's a great tool. Hard to find cheaper money plus I believe you can deduct interest payments related to investments as yours would be. Good luck

I’m right there with you on deleting it. I did the same thing but got back on for the real estate groups and for the marketplace. I’m not 100% but pretty good about staying off the rest of the platform. It is a time suck. 
The group has meet up options but I’m not really sure if you could access it without FB.

@Josh Higginbotham, a big congratulations to you on a double house hack, brilliant to also rent out one of your bedrooms. In terms of finding lenders (hard money or private) and just general local inquiries, I'd strongly recommend that you check Charlie Kao’s (https://www.biggerpockets.com/...)   Facebook group, Metro Grand Rapids Real Estate Investors. Private money lenders was a question put forth in the past few days with numerous responses.

@Alex Bekeza, that answers my questions pretty spot on so thank you. 

Good morning BP. Wondering if someone could shed some light on a thought I had about residential investing vs. commercial. Currently I'm doing BRRRR on small multifamilies which qualify as residential but I love the way commercial valuations work with CAP rates and NOI as opposed to comps.

My question is, if I were to pull together several residential properties into a portfolio could they be treated by a lender as a commercial property where I'm better rewarded for decreasing expenses and increasing revenue? If so would it be as simple as 5 or more doors (5 sfr or 1 sfr, 1 duplex and 1 triplex) or would it need to be 5 properties?  I assume all would have be refinanced to the same loan, correct? I would see my downside as needing to sell off the entire portfolio should I divest as opposed to individual properties correct?

Thanks in advance.

Trevor

@Xavier Martin, so glad that you and others are looking at these opportunities when you are younger. I wish I had but am happy that late is better than never. I agree with @Tereal Wilsonn’s book suggestions and would strongly, strongly recommend Chad Carson’s book Retire Early with Real Estate which pairs well with the other two. My other recommendations would be listen to episode 276 with Bryce Stewart https://www.biggerpockets.com/... as well as episode 48 with Daren Sager https://www.biggerpockets.com/...for some perspective and planning. Plan for the long term and take real estate where you want it to take you (great wealth, a nest egg, financial freedom or something else) and know there are a ton of people who want to see you succeed. Good luck.

@Kyle Palacios, I agree with @Greg Scott regarding the relative smallness of Ludington and limited economic diversity of a town like Midland. I invest in Grand Rapids and it's growing (perhaps too much so). Great size, great diverse economy and strong rental market. I live here so it's easier at the moment, that said $100k will probably not get you anything at all right now. I have strongly considered Lansing and Kalamazoo. Both have much more reasonably priced properties with solid rents and properties don't fly off the MLS nearly as fast. Spend some time comparing neighborhoods for rental prices vs purchase prices and how long rentals are on the market compared to number of inquiries. If you want to compare the macroeconomics of a few cities I like to use https://datausa.io/ . Also be sure to compare tax rates. 
A final thought, only paint is nice but flooring, even LVP installed isn’t horribly expensive especially if you can get a good purchase price.

Happy hunting. If you end up in GR or Kalamazoo and need property management I’d recommend my PM. 

@Scott Passman, I'm intrigued with Battle Creek for the same reasons you were/are. I'm just curious what you ended up deciding to do and how it went if you did purchase.

@Brandon Kiel, glad to be of assistance. In regards to meet-up, yes, it’s monthly. Sometimes it’s topic/education based and sometimes like tonight it’s more about networking and sharing what you need or want. Contractors, lenders, agents and investors all attend. Here’s the meet up link.

https://www.meetup.com/WestMic...

Brandon, 

Welcome to BP and congratulations on making the decision to hopefully change the course of your financial life. I was actually in your shoes just about one year ago and purchased my first duplex in March in GR. I'm working to wrap up rehab on one unit and refinance my money out next month. I'm making mistakes but most importantly learning as I go. At this point I would recommend an unrelenting pursuit of education. Books, blogs and podcasts. I strongly suggest BP episodes #327 BRRRR investing with David Greene. Probably should get the book as well. Also episodes #305 FI with just 5 Properties, #278 the Boring Path to Real Estate Success, #293 Chad Carson and probably get his book ‘Retire Early with Real Estate' as well.

Educate yourself to the point of reasonable confidence then make the move. I tend to over analyze and end up thinking myself out of action. I didn’t with the duplex and while not perfect it’s better than I hoped. Reach out if you have questions or want to meet up and I’ll share what little I have learned thus far. Also check out the meet up which is occurring tomorrow at the Buffalo Wild Wings in Wyoming at 6pm. It’ll be awkward and you won’t know a ton but it’s a great place to start and Brand Krieg is a great facilitator. 

Good luck, learn as much as you can and take action.

Trevor