You want to buy a rental property, so you put 20% down and get a mortgage to cover the rest. This is how most investors buy real estate, but some (Dave Ramsey) think you can do it without debt—or at least less of it. Can you actually build a real estate portfolio with cash? Will a shorter note kill your cash flow? Today, we’re putting these two investing philosophies to the test!
We’re answering more questions from the BiggerPockets Forums—this time, with help from Deandra McDonald, the investor who went from $4,000 to financial freedom with rental properties. After a debate on using leverage in real estate, we’ll field questions from a couple of self-managing landlords who are struggling with tenant screening and turnovers. Should you approve a “questionable” tenant if they’re pre-paying the year’s rent? How do you keep contractors on schedule when doing repairs?
If you’re trying to get into real estate investing with very little money, what should you do? We’ll discuss whether it’s better to raise capital from family and friends to invest today or hold off until you’ve saved up your own down payment. Finally, an investor wants to try their hand at hotel conversions. With this being right in Deandra’s wheelhouse, she shares the investing strategies that have (and haven’t) worked for her!
Ask Your Question on the BiggerPockets Forums!
In This Episode We Cover
Whether Dave Ramsey is right (or wrong) about using leverage in real estate
The easiest (and most difficult) aspects of rental turnovers
Common red (and green) flags to watch out for when screening tenants
How to come up with your first (or next) down payment from scratch
What to know before tackling a hotel conversion project
And So Much More!
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1346.
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