All Forum Posts by: Tyler Hodgson

@Gunnar Smith welcome! And I hope you make the big leap in 2019! 

What are your next steps? 

Hey Kevin, moving across the country to an unfamiliar area where you don’t know anyone can definitely be difficult. Personal referrals are always the best means of finding someone trustworthy, and if you are not from the area that can be difficult. 

On BiggerPockets you can connect with a few agents in whichever state (Florida or Texas) you end up moving to, and specifically your sub market. I like to work with people on my team who are fellow investors (real estate agents, lenders, attorneys, CPAs, etc). So I’d try to find some people on BP who come highly recommended and connect with them. 

If you are coming to the DFW area of Texas, I’d definitely recommend you connect with @Kenneth McKeown

Hey William, you should connect with @Kenneth McKeown. He lives in North Dallas area, and is all over the DFW area for real estate. He’s a fellow investor as well. 

What brings you to the Dallas area? What are your real estate goals for 2019?

Thanks @Kenneth McKeown. And yes, as Kenneth said, talk to a broker. The acquisition might have to be hard money, depending on the deal. And most banks definitely won’t be doing hard money. For the cash-our conventional loan you definitely want to use a broker. Hit me up with any direct questions you may have 

John, it all depends on your personal preferences and what type of rental properties you want to invest in. Some people like class A, some like class B, class C, or class D. Different pros/cons/risks with each different class. I like Neil’s strategy of finding something nearby, but in the DFW area I would say anywhere within the region. Something within a mile of your house may be nice because it’s close, but there area you are in may not be that great for rental investments. 

@John Kintz welcome to BP! What school are you going to? What’s your focus? 

I’m in the Dallas area, and I’ve lived here since childhood. Definitely start with house hacking. Buy a property as a primary residence, and then eithe rent out the other units (or bedrooms in the case of a single family home). 

You can do a single family or a multi family for your first deal, just depending on your preferences. You should connect with @Kenneth McKeown, he’s a fellow investor and a local real estate agent. He’s helped A LOT of guys on BP learn the ropes and get started on their investing journeys. 

Let me know if you have any specific questions about financing, taxes, and strategy!

Mark, good questions and great thought to try to grab a few more doors while rates are low. Here are my thoughts:

1. I would never just assume that inflation will increase your rents and make your negative cash flow situation better in a few years. I am always conservative on rent increase adjustments, just like inflation...you never know what macro- or micro-economic factors could negatively affect your assumptions. You have little control over it.

2. Good question, I think this would warrant a cost/benefit analysis and you'd want to put some hard numbers on a spreadsheet/model to compare the differences of the two options. 

3. What is the goal to utilize the $45k equity that you pull out? What do the numbers look like on the opportunities to use those funds?

4. I've done many cash-out refinances for investors in Texas. I would say most don't create a negative cash flow situation, and typically would only pull 65% or 70% LTV, if they can get enough equity out and have a better cash flow situation.

I personally like to look at overall cash flow picture. I'd rather have two properties w/ one cash flowing +$100 and one $+350 than just having one property cash flowing $+300, right? Also, more doors = more debt utilized for principal pay day, great appreciation gains, and diversified risk from vacancy and repairs. 

Generally, I would avoid going fully negative cash flow, unless you had strong reason to believe that the benefit far outweighs the costs/risks of the negative cash flow.

Hope this helps! 

@Tanner Micheli yes sir, my partner focuses more on tax strategy and prep whereas I focus on bookkeeping and consulting. But we work hand in hand with each client. Our ideal client does bookkeeping and tax services, that way we can have that constant communication throughout the year, rather than just one "oh crap" moment in April of the next year. 

There are a lot of good forum topics on here that discuss tax topics with many different CPAs who have chimed in. Great resource for a quick search, but also sounds like you need to get in touch with someone now to discuss your unique situation. I'll send you a private message and we can chat further.

Chase, @Kenneth McKeown is in that area and would probably be happy to meet up for coffee. I'm out of town this week, but I'm sure we'll run into each other soon. 

What brings you to DFW? Are you looking to start your REI journey, or do you have some properties elsewhere?