All Forum Posts by: Alacia Mahnken
Alacia Mahnken has started 1 posts and replied 33 times.
Post: Need funder - What if we split profits?
- Realtor
- Tampa, FL
- Posts 37
- Votes 13
Most HMLs will loan at 65% ARV-repairs. So they'd loan about 450k if your ARV is 1M (assuming this ARV is accurate), and then you can get a gap lender for the difference (180k plus closing costs/points/etc, holding costs). IMO, it is easier if the gap lender is private money because you can negotiate more favorable terms.
Post: So Dave Ramsey says.....
- Realtor
- Tampa, FL
- Posts 37
- Votes 13
I think this is why it's so important to know WHEN to transition from acquisition to actively pushing capital to debt pay down.
Post: Risks associated with triplex vs. duplex?
- Realtor
- Tampa, FL
- Posts 37
- Votes 13
I would argue that the TRIPLEX is less risky solely because of the vacancy factor. One vacant unit on a triplex is a hit on 1/3 of your gross operating income versus a duplex where it would take out half of your gross operating income. The only issue now is what Raymond mentions above...most lenders require reserves of 3-6mo for approval on their investment loans.
Post: New Investor Seeking Fourplex Investment Insights in Tampa Area
- Realtor
- Tampa, FL
- Posts 37
- Votes 13
Good afternoon Isaiah and welcome to the Tampa market. I would love to help, but first I would reach out to @Nick Velez regarding the financing terms. I haven't seen that low of a percentage down on an investment property in a bit. Are you planning on renting out all four units or living in one?
Post: New member from Miami
- Realtor
- Tampa, FL
- Posts 37
- Votes 13
Quote from @Elaina Diaz:
Quote from @Ray Hage:
Quote from @Elaina Diaz:
Thanks everyone!
I’m thinking about luxury condos for short term rentals since I’d occasionally want to have a place I can use for myself.
With mortgage rates so high and HOA fees for many of these buildings at around $1k a month, it seems like investing in a condo in Miami is more of a game of price speculation. I prefer buying all cash, not looking to be extremely leveraged. Not sure if prices will just keep rising or if a crash is around the corner.
I feel like these large luxury buildings are a gamble in many ways. HOA fee will probably continue to increase, you never know when an expensive assessment is around the corner and there is some potential for a price crash as they are really overbuilding (imo). I wouldn't recommend buying all cash if you can avoid it. You can make a lot more than 5-6-7% w/ other investments or through private money lending, which I do as well. You could always buy in cash and pull out the money later as well.
I’m willing to gamble a bit. A lot of condos here have nearly doubled in price in the past three years and while I don’t know if that kind of trend will continue I definitely feel the regret of not buying one maybe 3 years ago. Hindsight is 2020 of course :)
I'm not too worried about HOA fees and special assessments, I can still afford those out of pocket even without rental income.
I have no experience with private money lending. How does it compare with typical mortgages these days?
To be clear, I’m not against financing, but since I don’t know too much about what I’m doing I feel like it’d be easier to own a property outright and get some experience with landlording to determine how much financing I’d be comfortable with after maybe a year’s worth of rental income.
Hey Elaina! Welcome to BP! The biggest issue with using all cash is that it ties all your money up and denies you the leveraging power of using the banks money. In other words, it decreases your cash on cash return (what you're putting in compared to what you're getting out). If you are ever in Tampa, hit me up. I am always looking to meet new like-minded people!
Post: New Member from Overland Park, KS
- Realtor
- Tampa, FL
- Posts 37
- Votes 13
Welcome to BP, Chris! I am confident you will find everything you need here in the community!
Post: New Investor With Dreams to Shoot For!
- Realtor
- Tampa, FL
- Posts 37
- Votes 13
Quote from @Gabriel Lovatt-Sutton:
Thank you so much for your time and advice!
I have over a year until med school starts, so my plan is to do this. The main reason I am starting to loose interest in med school is because of the amount of time and debt to get into it.
I will definitely check out what you have to say.
Thank you!
I get that. It's a big decision and shouldn't be taken lightly…because you are right- it's going to take time, effort and money (by way of loans/debt) to get that MD/DO. If you truly want to be a physician, I don't think you should let your desire to do REI stop you. If I were you, I'd work to get up the DP and closing costs for a single family house near the university you will attend for med school, then I'd rent out the rooms to other med students. Since you said you have a full year before you start, I'm thinking you still don't know where you're going? Regardless, save and be ready. Med students are usually pretty responsible, and you know they can pay with their student loans. You can incentivize paying their rent ahead (by semester/term) via lump sums when they get their student loan reimbursements and also have their parents co-sign their lease for a backup plan if you don't feel comfortable enough with them solely on the lease. Plus- you get live-in study buddies! It's a win all around.
Post: Neighbor refusing to move camera pointed at STR pool
- Realtor
- Tampa, FL
- Posts 37
- Votes 13
Quote from @James Hamling:
@Wesley Myers I'd probably start by attaching these to top of my fence.
Only problem I'd have is pizzing myself with laughter as I am installing them in sightline thinking about the perv-neighbors reaction.
I’m sorry you are having to deal with this, how annoying. It probably is his way of passively rejecting an STR next to his home. or worse, he’s a perv.
I’d point a camera into his yard so you can “check on your fence line” 🙄
Post: New Investor With Dreams to Shoot For!
- Realtor
- Tampa, FL
- Posts 37
- Votes 13
Quote from @Gabriel Lovatt-Sutton:
Hey!
My Name is Gabriel. I just graduated with a degree in Cell & Molecular Biology and my plan has been to go to Medical School to become a doctor. A few years ago I got very interested in Real Estate Investing and connecting with anyone and everyone I could through local groups or individuals. My fervor and desire to jump into the game and become financially free was quickly deterred by people telling me I needed to get through school and start making money before I should get into REI. Therefore, now that I have my bachelors, I have come around again.
I have read a lot of books on this topic and they all say to state your goals. My goal is to make 75K annually within a year through the acquisition of multi-family properties. Ideally, I want to get properties that are 10+ units and will get me closer to my goal.
I will admit that there is a certain degree of fear that I have in regards to starting this adventure.
So here are my difficulties. I have read a lot of books on starting, but I am having trouble learning how to find that good deal I can bring to someone. Ideally, I would like to get in contact with someone that I can put my dedication, intelligence, research capability, and more in so we can be mutually benefitted. Therefore, if anyone can put me in contact with someone, that would be much appreciated.
I know that there is a lot more to be said, and I am willing to answer any questions that people want to ask.
Thank you!
If it’s that you no longer have an interest in the profession, then it’s time to go to work! You need capital! It’s time to work and save, work and save! Have you looked at the job market for your career and the expected salary? It may be that you have zero interest in that field and only obtained that degree because you were pre-med. Regardless, you will need to find how you can best put it to use now.
A goal of making 75k annually from large multifamily is great, but that sounds like a goal that is several goals ahead of where you are. Just a side note- Be cautious of all the “gurus” out there who will try to sell you pipe dreams on getting into REI with zero cash. Take the money you’d put into those programs and put it in your savings for your first property. You can learn everything you need to know by searching BP forums, listening to the podcast, YouTube, and your local REIA meetups. I think you mentioned you’ve already started this. I speak this from experience and would love to save you all the $ I have wasted in the past!
A current goal, would look more like “Save x amount for DP and closing costs for first property.” Likely a house hack. Start small and work your way up. As you acquire more, you can run the numbers and see at what point it would make sense to transition into a larger MF property by 1031 exchange.
While you are working and saving, figure out how much you need monthly to quit your job (assuming FIRE is your goal). Then you work backwards to figure out how many properties that equals for your buy box. Keep your cost of living low so you can reinvest it all into acquisitions, until you hit your number.
I know you said you are looking for someone that can help you find a good deal- that’s what everyone is looking for. Good deals and capital. You have to bring at least one of those to the table in a partnership. Figure out what market you want to buy in and narrow down an area to start. Get familiar with the prices in that area so that you can recognize when there is an outlier. Look at properties and plug them in the calculator. Run calculations on everything. You’ll see, most of the time the numbers don’t work and you will quickly be able to recognize when something has potential. Coach Carson on YouTube was helpful for me in the beginning. He has a ton of free content and excel/Google sheets.
You got this!
Quote from @Nathan Levi:
Hello my name is Nathan, most people call me Nate. I'm 23 years old just starting to get into real estate investing. I currently have zero properties. But planning on getting my first one this year. I want to maybe start house hacking and then focus on the Brrrr method. I have about $25,000-$40,000 ready to invest. I'm going keep saving and building capital for my first property this year. My goal is to become finically free by 30-35 years old. To do this I mostly like need about 10 properties. So just wanted to introduce myself and anybody willing to reach out I would love to talk with you and learn. Eventually find a mentor. I have a good growth mindset and strong work ethic. I just need to start and get that first one.