All Forum Posts by: Bob Okenwa

@Dan C.

If you're looking to get back the money you spent to acquire the property, then delayed financing may suit you well. For SFR's, you can get back the lower amount of up to 75% of the ARV or what you paid for the property plus closings costs. For MFR's it's 70% ARV.

If you'd like to do a cash out refi on the ARV of the property after making improvements, read this post.

@Ivan Aldana

Your options boil down to BRRR(not as easy as it used to be with market fluctuations these days), partnering, borrowing from a family member or close friend (this would have to be a cash purchase as loans are not allowed for investment properties for Fannie and Freddie), saving your own money, or taking equity out of property and using that for a down payment.

@Sarkis Gezalyan

The HELOC is subordinate to the original mortgage, so you will be paying the original mortgage, the HELOC, and the investment property. You will pay the HELOC only if funds are drawn, akin to a credit card. As soon as funds are drawn and the statement cuts with a balance showing, you will be responsible for the minimum payment at that time.

Very well said as always. People tend to forget that a flagship big name city is only part of the equation and that there are other surrounding cities within a county or metro area that can be the inverse of the county seat.

For example, Phoenix has grown by roughly 20% since 2010 while Gilbert, a city/suburb just outside Phoenix has grown by about 27%. I'm willing to bet Goodyear and Buckeye are places 90% of America has never heard of, but both are ranked in the top 10 of fastest growing cities in the US. 

@Joe Villeneuve I tried paying my mortgage with a percentage last month but the funny thing about that is they only accepted dollars in their online portal lol.

@Dylan Nice

MF units are going for about 200k (not so great units, not so great area) to 400k (much better) these days.

You should take a look at homes with casitas. You'll likely get a larger and better property in better shape in a better neighborhood than a straight MF property.

@Angelina A.

Are you looking at STR's or LTR's? Surprise is a pretty good community for LTR's (IMO) as the properties are newer and crime is lower than average. The 303 corridor is home to a lot of the newest construction in the West Valley. While you're not going to see the same appreciation as Scottsdale, Gilbert, or Tempe, Surprise and other west side communities are drawing lots of jobs and more people as well. Buckeye and Goodyear are amongst the fastest growing cities in the US also. 

Outside of the 303 (west) is a bit more suburban than the inside of the 303, but I wouldn't say that it's rural. There are plans to build a new mall out that way so we'll see if that comes to fruition.

As we enter economic uncertainty, you may be buying at the top or near top of the market so that's something to keep an eye on as well. Read the links about the development of the area and let me know if you have any other questions. I'm familiar with the Surprise as I spend a lot of time in the area and live pretty close by.

https://ktar.com/story/5088890...

https://yourvalley.net/stories...

https://azbigmedia.com/real-es...

Watch a few videos about the topic and you should have a better understanding of how to work SEO for your STR's.

https://www.youtube.com/c/Airb...

@John Philip Eugenio

Be careful with LTR's in San Diego. I believe they passed an ordinance to limit the amount of STR's. The Short-Term Residential Occupancy (STRO) ordinance limits whole-home, short-term vacation rentals to 1% of the city's overall housing stock, except for in Mission Beach where 30% of homes can be rented. It also requires property owners to obtain a license for vacation rentals and limits them to one rental property within the city of San Diego. The law requiring a license will go into effect on July 1, 2022.

With that being said, I'd turn it into a LTR and house hack if the numbers made sense.

@Isaac Lane

It is very possible, but one would need intimate market and sub-market knowledge, boots on the ground, the ability to close on properties, and a good buyer list. Like many things in life, this is not as easy as it looks. If it were, more people would be successful at it.

Photos are terrible and there are only 19 of them. Photos #14 & #17 show doors with no doorknob. If I'm a buyer and see that, I think that corner must have been cut. No drone photos, and the photos don't fully match the listing description. "The 10-foot ceiling walkout basement provides additional storage and potential to convert it into a living space." This is a major selling feature yet I don't see it in the photos. 

This is a below-average listing for the price point. I see a comp on the same street that sold for 900k in March. A 2.5%-3% commission may make a few buyer's agents take notice and bring buyers by.