How to Turn 1 Rental Property into MANY (The Right Way)
ฝัง
- เผยแพร่เมื่อ 19 มิ.ย. 2024
- Episode #825
Have a rental property? What if you could use it to buy even more rentals, build your real estate portfolio, and have a steady stream of passive income flowing into your bank account? On today’s Seeing Greene, one viewer is asking exactly how to do that, and while his strategy could work, it may not be the best move with mortgage rates so high and deal flow so low. So, what would David do instead?
It’s Sunday, so we’re taking listener questions directly from rookies, veteran investors, and those wanting to retire early. In this episode, David pokes holes in the “cash-out refinance to buy a new property” strategy. We also hear from two late starters who want to get a jump on their retirement, a burnt-out property manager looking for the best way to scale, an equity-heavy investor who’s debating buying a rental or lending out his money, and a reviewer who was scammed by the real estate “gurus.”
Want to ask David a question? If so, submit your question here (www.biggerpockets.com/david?u...) so David can answer it on the next episode of Seeing Greene. Hop on the BiggerPockets forums and ask other investors their take, or follow David on Instagram to see when he’s going live so you can hop on a live Q&A and get your question answered on the spot!
~~~~
Join BiggerPockets for FREE 👇
www.biggerpockets.com/signup?...
~~~~
Expand Your Investing Knowledge With the BiggerPockets Books:
store.biggerpockets.com/?utm_...
~~~~
Find an Investor-Friendly Agent in Your Area:
biggerpockets.com/agentmatch
~~~~
Find Investor-Friendly Lenders:
biggerpockets.com/findlenders
~~~~
Ask David Your Real Estate Investing Question:
www.biggerpockets.com/david?u...
~~~~
Books Mentioned in Today’s Show:
Pillars of Wealth: get.biggerpockets.com/5fbfac0...
SCALE: store.biggerpockets.com/produ...
~~~~
The Late Starter’s Guide to Retirement with Real Estate (40s, 50s, or 60s!):
www.biggerpockets.com/blog/re...
~~~~
Warning: Why You Shouldn’t Buy What the Gurus Are Selling:
www.biggerpockets.com/blog/gu...
~~~~
Subscribe to David’s TH-cam Channel:
www.youtube.com/@DavidGreene2...
~~~~
Connect with David on BiggerPockets:
David: www.biggerpockets.com/users/d...
~~~~
Follow David and BiggerPockets on Instagram:
@davidgreene24 or / davidgreene24
@biggerpockets or / biggerpockets
Show notes at: www.biggerpockets.com/blog/re...
00:00 Intro
02:15 Quick Tip
09:56 How to Retire Early with Rentals
15:01 How to Scale Your Real Estate Business
21:39 Questions from The Comment Section
33:07 DON'T Quit Your Job
38:26 Private Lending vs. Buying Rentals
45:11 Ask David Your Question!
Get a HELOC on the paid off property then use it as the capital resource to buy the new cash flowing property by using the BRRRR strategy to restore the HELOC when you refinance it.
Generally, people with a terminal illness do not want to spend the remainder of their time managing construction projects.
David knows how to tell you the truth and give you the tough conversation NOBODY wants to have with you! bravo my man...
Thanks for regularly creating great free content! I’ve found a lot of useful information just by listening to you guys. Also love the tools that are made available with the pro membership.
Awesome “Seeing Green” episode as always! Thank you for providing great answers to great questions.
I really appreciate you. You are keeping it so real. It's easy to listen mult times in a week / see success stories and want to replicate the success immediately. When you set your listeners up with expectations, it keeps ME very happy/content.
Thank you David for all that you do ! Your podcasts share immense knowledge and provide courage to take the steps necessary . I wish i knew about bigger pockets during COVID time ,i could have started early :) . But better than not buying ever. Thank you for your guidance !
Among all the questions, the last one stands out as particularly valuable. It prompts a thoughtful evaluation of different strategies, offering a mindset crucial for effective decision-making. Thank you for addressing it!
I have grown to love my half hour drive to church every Sunday... thanks to your videos! I learn so much each week.
Just pre-ordered! I’m excited to read this. I devoured “Choose FI” a few years ago. Now, I’m excited to read a book that is focused more on the making money-side and the power of real estate as a means of retirement income. Just bought my first STR this year and hoping to add 1-2 more per year going forward!
Great Episode well needed in this time future classic 🌊💯
Hey Gregory! It's awesome to hear your story about making money from your short-term rentals. You mentioned inheriting some money, and it's smart to use it to make more money and secure your family's future. Investing in homes that need a bit of fixing up or even considering buying houses that need work and then selling them at a profit could be a great way to go.
Am watching from Ethiopia and I will apply everything you guys teach me thanks!
A lot of helpful gems as someone who is getting started. Thank you!
Love the new honest content. When I first subbed to this channel years ago I feel like you would have told the first guy to refi and brrrr 5 new properties.
Oh Deborah! 🤦🏻♀️ The only people I listen to is those on Bigger Pockets and Thach Nguyen. I drown out all the other noise.
We live in Utica Indiana right across the river from Louisville Kentucky, so we are trying to build a destination up here for the derby and thunder over Louisville. We’re in an up-and-coming town.
I wouldn’t touch that mil in cash. Park it in bonds and hammer $40,000 a year interest while you look for opportunities.
Would really love your advice on this project
Hi i follow your channel with bog interest despite me not living in the us.
I live in dubai and i want to built a real estate portfolio as retirement plan.
Here is a totally different market than us and it is very volatile.
I already pulled the trigger on a premium 1 bed on a off plan payment and i wanted to ask you a question.
I want for my next move/buy to go for rental property in order to get some cash flow.
Here the payment thru the bank is 20% downpaymwnt + 5% charges.
When you go for 75% mortgage from bank, i didn t find any single property in dubai wich will give you extra cash flow after paying service cherges wich are very high over here.
The question is , is it still worth going for such a plan if let s say the rental pays off the morgage?
In that case should i rely on capital appreciation wich is very up and down?
What would be your suggestion for a fuy like me ? I m 46 yrs old and looking to build a real estate retirement plan.
Thks
Sami
Great info thanks!
⚠️THANK YOU for answering comments by viewers and actually deciding to pick good questions that most are curious about ⚠️
🙏🏽 please keep the helpful answers coming from picking good comments to discuss
Can I short term rent my primary if I lived in it for more than half the year.
When will book be available on Audible?
Great episode David!
I have question, I bought multi family investment property using dscr loan. My question is can I move in to the property since this property is an investment property?
Please advise. Thank you!
You should ask your lender, but I’m pretty sure you can’t live there. I think you are required to have another residence to qualify for a DSCR.
Great show!
How do you know what area is a good area to invest in multi family?
David green I Bought the book pillars of wealth
Hi David thankyou for your immense knowledge ....is it true on nov 18th 2023 we will be accepted to put down 5%for multifamily?
Thankyou in advance
We have 12 acres with a few homes on the property great river views
Never ever get rid of the batman quick tip
I went to the BP store to pre-order pillars but that didn’t seem to be an option at the moment. The only option that seems to be available is a “sneak peak” of on of the chapters. I’d like to pre-order the book, what did I miss?
The sale is currently only through offsite stores. It will be in the BP bookstore in the coming weeks.
David, is building a fourplex and house hack a good idea at this time of high mortgage interest and high land price? How much per square foot is considered reasonable to build? Don’t care if it’s not cash flowing initially. Thanks!
Reach out to a local general contractor that has experience with building small multifamily in your specific market.
$150/sf is a good gauge. Not sure we'll ever get back there tho
For the first question asker, at 6:30 in the video, David says "I'm not a huge fan of putting debt on existing properties to buy new properties." Really?!? David wrote the BRRRR book which is all about taking money out of existing properties to buy new properties. Just as David recommends for the second question asker.
Normally David would say, "You have energy stored in your house, and it's not doing anything for you. Take that energy, put it into another property that has value add, and then do it over and over."
David my wife's jealous because I listen to you more than her 😂. Thank you for all you do and load of wisdoms that you bring!
Wooo Hooo 🎉🎉🎉🎉 Kudos to you, passive income concept is the largest lie 🤣🤣 Even a billionaire must at least manage their money, liabilities, and assets to remain a billionaire = Active!
Investment in the stock marketplace is not passive growth. There is an entire team working actively to keep the fund relevant and profitable. The investor must actively keep their life in check so they don’t need to tap into savings/investments to fix hiccups. Great video!!🎉🎉
"..that will allow you to pull that mustache right off your face" 😂💀
Up on the bluff
Hi my name is Raymond bond and I make 15.75 an hour how would I get some fixer upper house with how much I make
Can I buy a duplex and give 5% down on a conventional loan? I’ll be living on one side.
Yes
Maybe a fha loan will give you 3.5 down
lol love the 3star from Debbie part. Made me laugh
The title of this video had nothing to do with the video. Thanks for wasting the viewers time. Click bait title.
But it was a good episode ❤
Thanks for the heads up 😂
Hope you are able to get thru it. Don't let anyone tell you that you're NOT the victim here. You hang in there, Bill 👌
“Don’t quit your job” - just stay there and let them treat you like a slave lol
Guy asks for advise on real estate.... just get another job or two. hahahahaha
It’s fine if David doesn’t believe in cash flow as a source of income for folks to replace job but can we have a different sub -show with a host that does ?
Theres clearly a bunch of folks in markets David thinks are bad making a bunch of cash flow from renting houses . Shouldn’t be too hard to make a show themed towards this
The change of tone is stark between the the podcasts from 6 yrs ago and today. We need to be real with ourselves. Now is an absolute horrendous time to buy real estate. 40% national increase in 3 yrs, 2x-3x increase in the cost of money. And while rents have gone up in 3 yrs as well, they are now stagnant nationally, and declining avg in many markets. You will need to both be creative and persistent in this market. So that means you don't find shit on the MLS. You have to make your own deals, off market, creatively. People need to wake up to reality. I bet majority of regular BP guests between 2015-2020 aren't even buying anymore. The days of just browsing the MLS and running a rental calc are over
Careful he's sensitive when you call him out on this 🤣 Also he's bias because he owns/partners with a loan company they are always advertising on this channel. The channel went to trash after brandon turner got "rich"
@@worldhistoryexplained1to be fair, the podcast hosts always emphasized that having the skills to acquire off market properties below market value was the most important aspect of investing.
It really depends on the market. The last two properties I’ve bought were on the MLS. Respectfully of course. It certainly is more challenging for sure.
If I was the guy with $900k and at his stage in life I'd just put it into a 5% money market and enjoy the guaranteed $45k/yr interest income. No hassles, no work, and it's liquid. Who needs the headaches of flipping houses or being a landlord when your health is declining and you just want to enjoy life?
I'd bet you a hamburger that $10,000 course was Grant cardones. Just a guess.
I see your hamburger and raise you a mcdouble it was Pace Morbys course.
‼️‼️‼️💯
Everyone is a landlord now, what can go wrong?
Using the Brrrr method is the best method to refinance your rental income property to get the equity out in order to purchase another property. @GilbertChecoury
Could also do other creative ways such as seller finance and subto. BRRRR is phenomenal and I do them myself as well!