All Forum Posts by: Will Pritchett

@Nick Wilson I agree with Evan Hutchins on this one. It may be a bit more hassle but inquiring on the ways you can get your rehab money included on the HUD and do draws can be a way around this. Call banks until you find one that understands what you want to do. I haven't done this myself but I have done a lot of BRRRRs and if I had known this earlier, I could have grown faster. Not all lenders are the same. Find a great one that knows investment loans! The seasoning period just slows things down. Some of the posters have good ideas with the Commercial lending but the terms are never as sweet as the conventional loans. I'd first try to find a way around those seasoning requirements for conventional before switching to Commercial if you can.

Best of luck!

@Rickard Risberg Good for you to be learning so much at such a young age.  Where are you located?  Maybe fill out more of your profile so locals can help you out too.  It sounds like you are getting the idea.  Buy and hold rentals can be great.  To answer your questions about property management, I think that if you are doing this full time, then it is feasible to handle 30 if you have great renters.  If you have a more management intensive tenant class, maybe fewer.  There is a good book called Landlording On Autopilot by Mike Butler that you may want to check out when it comes to being able to self-manage more units.  It's largely about systems.  PM me if I can help.

Best of luck and keep up the learning!

@Clark Meyer yes!  There is a long thread about this guy here on BP.  He sounds like the type that give investors a bad name.  I've heard a lot of his podcasts.  

Best of luck

@Lane Smith Leverage generally allows for higher ROI, potentially allowing you to keep more cash for investing in other deals. But if your plans are to just own this one, paying cash may be the way to go. Not enough details here to fully evaluate. Be sure to set aside money for vacancies and repairs either way when you calculate your cash flow. So much comes back to your overall strategy and plan.

Best of luck

@Dominique Long Lots of advice.  Where are you from?  

@Jordan Gutierrez I recommend going to networking events and meeting people in the business.  Some of it may sound like Greek at first but you'll start learning the language.  There are lots of meetups and events in San Antonio so you should be able to find one that resonates with you.  Best of luck!

@Paul Zofsak I agree with @Ryan Dossey on this.  Where I am, if you add a closet and a window that is a bedroom.  Bedroom count matters here.  I have a few converted garages and they rent well.  In San Antonio a lot of people don't actually park in their garages so it's mainly just giving up storage space.  We've never ever had an issue renting one with the converted garage.  Ours happen to have central air ducted to the extra room but it could also be supplemented with a window unit or mini-split unit if needed for climate control.  

Best of luck.

@Adam Fiegen Good question. I am writing about this lately on my blog. We started the same way you are. It does take time but if you adjust your budget to squeeze some cash into savings and add your free cash flow from house number one, it will start to grow. We even diverted retirement savings to real estate savings to "put all our eggs in one basket" so to speak. The irony with working more hours and jobs is that you will be gone longer hours to be home more hours in the future. I did the same thing. My job allowed for OT and I was gone a lot. The tipping point for me was when we discovered private money and the BRRRR process. PM me if you want more info on how we did it. It is very possible! Most of what I learned was from BP. Do not be discouraged.

Good Luck!

@Parth Patel Anything published by Bigger Pockets that is focused on the parts of real estate that interest you.  And also The Millionaire Real Estate Investor by Gary Keller.  That should keep you busy for a bit.

Best of luck,

Will

@Phil Jones this is a great question and a great problem to have!  I think a lot of this comes back to what your overall goals are.  I think if you just want one rental and want to pay it off, you are very close.  However if you want to grow your portfolio and scale (and don't abhor debt) you have some great seed money there.  If you've lived there for two years, a sale should bring you tax free gains which are pretty hard to find anywhere.

We are in San Antonio and although not far geographically, our market is very different from yours. We have been repositioning our portfolio a bit and have sold some houses that had appreciated and were not cash-flowing as well as some lower priced rentals we had. We had too much "dead equity" and decided to buy more 100-160K ARV houses that would cash flow much better. We know that we may not see the same appreciation on these but we are focused primarily on cash flow at this point in our business. These lower priced houses rent very quickly and we have had great luck finding quality tenants for them. So for my strategy, I'd sell and redeploy the equity. But that may not be the move for you. Just my two cents. I just posted a blog on BP about how I am leaning towards either maximum leverage or paying off properties but avoiding that place where I am in the middle with "dead equity". I'd love to get your thoughts on the blog if you're interested. It may spark some ideas regarding your awesome dilemma. Congratulations on finding yourself in this predicament of having "too much equity".

Best of luck