All Forum Posts by: Sam Peterson

We have now exited the crash pad model as it was too management intensive to maintain at a distance. After taking a new job, I find myself home far less and needed to simplify. The crew car was a bit aggravating as people routinely disrespected the rules and drove like maniacs. We would get toll charges and red light camera charges and nobody would own up to their mistakes. Everyone fought over who was responsible for gas and the insurance was outrageous. I was very happy to close up shop, sell all of the furniture, take my car back and renovate the house to place a nice family in the house. We are cash flowing quite nicely and I have far less stress. We are buying our third home in a few months and are currently renovating our second home, preparing for renters. The crash pad model was a great kick start but it certainly came with its challenges. But it put my wife through all her flight school without any debt and for that I am eternally grateful. 

Thanks for the details of your two properties Kevin. That was a great comparison run through. Time to put together a game plan. 

Thank you to all who replied. After some digging, I feel like the HELOC would likely be the preferred route for funding my next project. It looks like there are a few lenders that will lend a HELOC on a single family investment property, which previously I thought was not possible. Now it's time to do the ground work and start digging for a successful property makeover! Let me know your thoughts and opinions please. I'm glad I posted my idea. If you all hadn't spoken up, I wouldn't have thought to shift gears.

While discussing various strategies with another investor friend, I suggested that I'd like to do a 1031 exchange, taking my equity and rolling it into a smaller home to start my BRRRR endeavors. His advice was to hold my current property and continue acquiring single family homes with low money down for owner occupied and move around until I've maxed out my mortgaging capabilities. After insisting the BRRRR method was what I wanted to go after, he said he had friends that were unsuccessful with this in the Houston area. Does anyone have any experience with BRRRR in northern Houston? Spring, Humble, Atascocita? Any advice would be truly appreciated.

Come enjoy an evening with like minded investors at the Green Oaks Tavern. Looking forward to meeting some new and experienced investors!

Quote from @Tina Romeus:

Hello @Sam Peterson, how is your crash pad going?  I am starting to research the idea of starting one.  For analysis purposes, how do you determine the max number of people (max rental income) per month when offering hot beds? I've seen most have more crew members renting than the total number of beds in the house.

Each market is different. We didn’t offer hot beds because the market in Houston wouldn’t support it. You’ll have to do your research but there are websites that can help provide insite to other crashpads and their listings, such as crashpad411.com and crashpads.com. We utilized our knowledge of crash pads in our area and local property laws to help us reach our max number of occupants and earnings. We also found that it was difficult to find renters without also offering transportation. This business model requires a specific market close to airports that provide an airline crew member domiciles. You could likely mirror the model in other markets that require transient workers such as traveling nurses or those working in the oil and construction fields.

I currently have a 401(k) with my employer. It does not allow me to use the funds for the purpose of investing in real estate property.  i’m very close to changing employers, and they have the ability to discontinue the connection with my current employer within my current 401(k). My question is, does anyone know of a good quality 401(k) custodian that works well with real estate investors? With my change of employer, I believe I have a unique opportunity at this time to roll my money over into an investment custodian that will enable me to use my funds for real estate investment. I just need to know the best avenue to take at this point.

@Jesus Roman

Unfortunately, I won’t be there on Thursday but Vu Pham will be hosting the event. I’ll do my best to be there in October. Let me know how it goes.

We had a nice turnout for our first meetup last month. We are hoping to attract even more of you to come and mingle with us. We will be holding these meetups on every 3rd Thursday of every month at the same location. If you’re unable to make it this month, there’s always next month. There are no pitches and no fees. We want to network with like minded investors and those who would like to be a part of an investment team. Come out and share a pint on the patio!

@Jonah Cervantes

Thank you for your service, Jonah. There are lots of videos about VA loans, their benefits and their limitations. I started with a VA loan with zero down payment but it came with fees that were wrapped into the loan. You can get a second VA loan but there are limits with the total amount borrowed between the two loans. There are also distance limitations as well. When we bought our second home in Houston (2 blocks from the first house) the VA denied us due to its proximity to the first house. In your case, it would be easy to buy a home at your first duty station and rent rooms out to friends in your unit. When you transfer, hold onto it and have a property management team take care of it for you and buy your second home with the VA at your new duty station. That's how I would start. But do yourself a favor and read as many books from BP as you can. You're in a great position to get started with the VA but there's so much more to learn beyond your first two homes. Good luck.

Sam