989: Seeing Greene: Investing with High DTI, When to Refi, & Getting Out of Debt

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Investing, Business

4.8 • 16.6K Ratings

🗓️ 16 July 2024

⏱️ 49 minutes

🔗️ Recording | iTunes | RSS

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Summary

Life happens, and you’ve accumulated some debt. You’re wondering how to buy real estate EVEN with a high DTI (debt-to-income) ratio. Whether it’s good debt, like rental property mortgages, or bad debt, like credit card debt, holding you back, David and Rob have some ideas to help YOU grow your real estate portfolio faster, make more passive income, and get yourself out of the red! In this Seeing Greene, we’re talking about good, bad, and ugly debt. First, a house hacker hits hurdles when trying to buy his next property due to his current mortgage. Thankfully, there’s a way to get around this using the “sneaky rental” strategy. An investor with a growing portfolio struggles to find a bookkeeper who can keep his finances together WITHOUT costing him an arm and a leg; David and Rob give two very different pieces of advice. Got bad debt? We give an investor options on what he should do to consolidate his $40,000 credit card balance. Wondering when to refinance your mortgage? A repeat caller asks whether a cash-out refinance on one of his properties is worth the rate increase and closing costs. Finally, what would you do with two houses on one lot? Renovate them and sell one? Keep them both as rentals? And how would you fund the renovation? David and Rob give their takes and a HUGE red flag that everyone trying to “subdivide” land should know about. In This Episode We Cover How to scale your real estate portfolio FAST with the “sneaky rental” strategy (even if you have debt!) When to refinance your mortgage and whether a higher rate is worth cash in the bank Bookkeeping for real estate investing beginners and how to not lose yourself in spreadsheets How to consolidate debt so you can continue to buy rental properties Where David and Rob are investing next, plus a BIG move one of them is making Subdividing lots and the one thing you MUST do before you even think about it And So Much More! Links from the Show Ask Your Question and Network with Investors on the BiggerPockets Forums Join BiggerPockets for FREE Property Manager Finder See David and Rob at BPCON2024 in Cancun! Real Estate Podcast 675 – Seeing Greene: When Does It Make Sense to Refi with High Interest Rates? Grab David’s Book on the BRRRR Method (00:00) Intro (02:03) Scaling with “Sneaky Rentals” (08:02) Can't Keep Up with Bookkeeping! (14:29) How to Consolidate Debt (19:31) Where We're Investing (24:12) When to Refinance? (30:38) How to Fund a BIG Renovation Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-989 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	What's going on everyone? This is David Green, your host of the BiggerPockets Real State podcast.
0:05.0	Joined today with my good buddy Rob Abisolo for an episode of Seeing Green, where we take your questions from the Bigger
0:11.3	Pocket's growing and thriving community and answer them so everyone can learn how to make money investing in real estate.
0:17.5	Rob how are you today? I'm good man. I am becoming a regular at Home Depot all over again. I'm doing a remodel. It feels like I know everybody
0:26.2	there. They're greeting me at the door by my name. And I forget how expensive things are.
0:30.9	You know, it all adds up.
0:32.3	Mm. Are you checking the
0:33.4	thermost out before you leave the house and being angry because it's set too low?
0:37.3	I was, but we just got a new AC at my house, which I'm happy about because my house is cold but I'm sad about because it's very expensive to replace an AC and honestly it is good to be home again for a little bit there things were tense because it'd be a hundred degrees outside but like 80 degrees in our house so you know all is well in the Abbasolo household. How are you buddy?
0:59.8	That's great to hear and if you're like Rob you can kick the sawdust off your new balanced tennis shoes
1:04.5	that you picked up at Home Depot.
1:06.8	Tuck your polo shirt into your dockers' pants and strap yourself in because we have a banger of a show for you
1:12.1	today.
1:12.6	Rob and I are going to talk about using the sneaky rental strategy even when your
1:16.4	debt to income ratio is having a hard time keeping up, much like Rob's AC.
1:20.1	How to handle bookkeeping as you scale your business but cannot afford a full-time bookkeeper,
1:25.3	much like Rob cannot afford Home Depot. Consolidating your debt and going through home refinances
1:31.8	so that you can purchase more real estate of which you might need to
1:34.5	rehab like Rob at Home Depot.
1:37.1	All that and more in today's awesome show that is not sponsored by Home Depot but probably should
1:41.4	have been.
1:42.4	Oh and most importantly while we're here,
	...

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