Show Notes
So you ran the numbers and the cash flow shows negative? You don’t have to give up on rentals. With a few smarter assumptions, the right strategy, or the right market, you can turn “this will never work” into a deal that actually pays you!
Welcome back to another Rookie Reply! Today’s first rookie has analyzed three to four dozen small multifamily properties. Even at 20% below asking, almost none of them cash flow on day one. We narrow it down to three possibilities: are you being too conservative with your expenses, is the 1% rule out of reach in your market, or is it time to pivot? We show you how to stress-test your vacancy, maintenance, and CapEx numbers, and walk through the real fix.
Next, can you invest in US real estate while working here on a visa? We share exactly who to talk to before you buy! Finally, we’re breaking down how to build your investing team when capital is limited, including which pros you need before your first deal and which can wait.
If the numbers don’t work, don’t force them. There’s a better path to your first deal!
Looking to invest? Need answers? Ask your question here!
In This Episode We Cover
Why your deals won’t cash flow, and whether it’s your math or your market
How to make rentals work in a high-cost-of-living market
How to pivot your strategy with rent by the room, mid-term, or short-term rentals
When to tighten (or loosen) your expense assumptions
What to do before buying rentals on a work visa
Who to hire first when your capital is limited
And So Much More!
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-787.
Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices
More from Real Estate Rookie
What would you do if you had to start your real estate portfolio over with little money and no experience? We’d do it a lot differently the second time around!
Ever made a money decision you'd give anything to redo? You can't rewind the clock, but you can try again, even with a full-time job and a full house!
Pulling equity out of your home to buy your next rental can feel like free money, but it isn't. Whether you use a HELOC or a cash-out refinance, if you don't run the numbers the right way, it can eat up your cash flow…fast. But if you get it right, the equity you've already built can fund your next down payment without draining your savings, while growing your portfolio!
Thinking about investing in long-term rentals? Finding the property is only half the battle. Getting it rent-ready, landing great tenants, and keeping everything running smoothly is where successful landlords get it right. So today, we're flipping the script and bringing Ashley into the hot seat to share exactly how she does it, and the costly mistakes to avoid along the way!
Most rookies think you need dozens of rentals before you can walk away from your job. But what if the fastest way to replace your income didn’t require building a huge portfolio?