All Forum Posts by: Allen Tracy

Right now in the area I'm looking the buying is insane.  Buyers are making super aggressive cash offers over asking with escalation clauses.  I even lost to someone who had only a visual inspection contingency where they just walked the property themself without an inspector (crazy in any market).  The numbers these people are offering makes the return so low.  Not sure if it's panic buying or what.

I believe roofstock released some numbers saying the traffic from foreign investors jumped 500%.  People that have cash that don't want to mess with the ups and downs of the stock market are looking to real estate.

I don't think it's a good idea to use numbers like the percentage drop on the buying/selling of homes since that also includes primary residences which makes up the majority of those numbers and those people are definitely holding on purchasing.

I think some of the lower income tenants renting places for a low amount of money actually work in essential positions.  They are also used to living on low wages so an influx of cash like the stimulus money can be enough for a few months rent and if it's a couple with a child or two they'll be enough for 3-4 months rent.  Not to mention the additional funds for unemployment.

My property manager manages 1,300 units and he said he only has four vacancies because of all of the cash that's been sent out.  He has his fair share of people who can't pay rent but it's much lower than he expected.

As soon as things start opening back up or if they create a vaccine this will all pass.  There may be a dip in prices depending on where you're investing but I don't think it's going to be much.  This may be a good time to purchase something that needs a rehab that will take a month or two where you weren't planning on receiving any income anyways.  Just make sure the numbers work.

That's a huge help, thanks @Jason Bott

I'm a new investor trying to figure out what most do for their insurance coverage.  The quotes I'm getting seem to be a bit more than I had been running through the calculator.  What kind of coverage and deductibles do you like to have.  The quotes I've been getting have the following:

Dwelling
Personal Property
Loss of Rents
Premises Liability
Medical Payments
Vandalism/Malicious Mischief
Water Backup of Sewers or Dains

The properties I'm looking at are in the $90k-$130k single family and duplexes in the Columbus area.

I've noticed the same thing.  I've been getting quotes which I thought would be around $50 a month but they've all been over $100 a month.  The quotes were on a $120k property so for a $45k property that definitely seems high.

Here is how the numbers work for the Turnkeys I provide next door to you in Phoenix

3 Ways to Wealth in Real Estate – Fix & Flip, Buy & Hold, Turnkey (Cash flow) – Here’s How

https://www.biggerpockets.com/forums/311/topics/780022-3-ways-to-wealth-in-real-estate-cashflow-flip-hold-here-s-how

Thanks!

Thanks Phil, I figured there may be some pitching going on at the boot camp.  Thanks for the info on those local meet ups, I'll look into them.

I'm curious what others have to say.  I'm also in LA with around the same amount to invest.  Currently I'm looking at doing out of state BRRRRs.  I think normally house hacking would be the best bang for your buck.

Has anyone attended this boot camp or belong to the LA Real Estate Investors Club? $99 isn't too bad to attend an all day workshop and possibly meet some like minded people.  Or maybe I should just attend some of the Investors Club meetings.

https://lareic.com/boot-camp/

Here is my experience so far.  They said my asking amount put my loan to value ratio at 82% so they could only do prime rate plus 1 so I would be roughly at 5.75% with no introductory rate.  I told them I wasn't really interested in that option so they sent someone out to appraise my home which came in at me having around $397K in equity so they gave me three options.  The original amount requested which was around 75% of my equity at prime +1 with no introductory rate, around 65% of my equity for prime + 0.5 with no introductory rate, and finally 50% of my equity for prime (currently 4.75%) and I'll get the intro rate of 3.99% for one year.  I do have to carry a minimum balance of $25k for the first year though.  Interest only payments for the entire draw period.

Looking at it in all cash terms you'd be roughly all in for $105k with after repair value of $140k.  Then you're able to refinance and pull $105k cash out (75% of $140k) so you'd get your money back and now have $35k in equity in the property plus the cashflow.  Sounds like an awesome deal if all the numbers do work out.

Not sure how it would work with financing the original downpayment, I'm new to this but also looking at using a HELOC, in the middle of getting approved now.