Head of Real Estate Investing at BiggerPockets · Seattle, WA · Member since 2015 · 354 posts · 828 votes
Hey everyone -- we're trying to get a sense of what the BP community plans to do in the coming months, given the impact of coronavirus and the related economic ramifications. Could you please take 2 minutes to fill out this survey? We want to make sure we're meeting the needs of real estate investors in this changing environment, and hearing from you will help us a ton.
Rental Property Investor · Mesa, AZ · Member since 2016 · 103 posts · 72 votes
6y
Completed the survey.
a 4plex in the East Valley of the PHX MSA fell through contract a couple of days ago and the agent wanted me to submit an offer. I gave him the price and terms and he sent me the docs to sign but I had to decline given the uncertainty and really calculating the risks involved. I feel like I should be focusing on operating the 8 units I have efficiently by keeping my current tenants and protecting my capital and being patient
I would have been using a hard money lender (80% LTV, 10%, 1yr loan term) to acquire and then begin renovations and raising rents to market. and then do a VA cashout refinance or FHA and move into one of the units. so my risk is if the property will not hold its value or go down and I cant refinance and/or if my new tennat base will be able to afford the new rents ($950).
My gut is telling me to stay liquid and see how this plays out but there's this FOMO (fear of missing out) side that thinks this will blow over and I won't have a deal. I want another 4plex this year.
how would you guys feel about getting a property under contract right now? to pause and wait or to take action and buy?
Rental Property Investor · Mesa, AZ · Member since 2016 · 103 posts · 72 votes
6y
Completed the survey.
a 4plex in the East Valley of the PHX MSA fell through contract a couple of days ago and the agent wanted me to submit an offer. I gave him the price and terms and he sent me the docs to sign but I had to decline given the uncertainty and really calculating the risks involved. I feel like I should be focusing on operating the 8 units I have efficiently by keeping my current tenants and protecting my capital and being patient
I would have been using a hard money lender (80% LTV, 10%, 1yr loan term) to acquire and then begin renovations and raising rents to market. and then do a VA cashout refinance or FHA and move into one of the units. so my risk is if the property will not hold its value or go down and I cant refinance and/or if my new tennat base will be able to afford the new rents ($950).
My gut is telling me to stay liquid and see how this plays out but there's this FOMO (fear of missing out) side that thinks this will blow over and I won't have a deal. I want another 4plex this year.
how would you guys feel about getting a property under contract right now? to pause and wait or to take action and buy?
Hey everyone -- we're trying to get a sense of what the BP community plans to do in the coming months, given the impact of coronavirus and the related economic ramifications. Could you please take 2 minutes to fill out this survey? We want to make sure we're meeting the needs of real estate investors in this changing environment, and hearing from you will help us a ton.
a 4plex in the East Valley of the PHX MSA fell through contract a couple of days ago and the agent wanted me to submit an offer. I gave him the price and terms and he sent me the docs to sign but I had to decline given the uncertainty and really calculating the risks involved. I feel like I should be focusing on operating the 8 units I have efficiently by keeping my current tenants and protecting my capital and being patient
I would have been using a hard money lender (80% LTV, 10%, 1yr loan term) to acquire and then begin renovations and raising rents to market. and then do a VA cashout refinance or FHA and move into one of the units. so my risk is if the property will not hold its value or go down and I cant refinance and/or if my new tennat base will be able to afford the new rents ($950).
My gut is telling me to stay liquid and see how this plays out but there's this FOMO (fear of missing out) side that thinks this will blow over and I won't have a deal. I want another 4plex this year.
how would you guys feel about getting a property under contract right now? to pause and wait or to take action and buy?
I'm in a similar boat. Under contract and highly concerned but moving forward.
