All Forum Posts by: Bob Okenwa

ARMs are a gamble. Take the 30-year and if there is an opportunity to refi down the line, than that is a bonus. I run my numbers strictly based on current rates and prices and not hypotheticals of lower rates or prices in the future. 

Tacking onto what @John Koster said, the POS ordinances can be tougher in certain cities than others and the tax rates in the burbs can turn a dream deal into a nightmare rather quickly.

I'd find a knowledgeable agent who also invests and work with this person to learn the areas and see what fits your investing profile. James Wise has a map that should help you get started on places to avoid. This ins't a catch-all, be-all kind of thing, but should get you going in the right direction.

Most importantly is getting a good agent to keep you out of trouble and save you from yourself. What glitters on a spreadsheet isn't necessarily gold in reality.

TV's are dirt cheap these days. If you're asking me to pay $200+ per night and there weren't TV's in every room, I'd look elsewhere. In most cases, you can get away with a 42-inch or something along that size and they'll be less than $200.

Don't step over dollars trying to pick up pennies.

IANAL and have never specialized in constitutional law, but I agree with @Russell Brazil that this isn't related to the constitution. If you can find wholesaling real estate in there, please give us the article and section numbers for reference.

I can't speak to Maryland, but in AZ, transacting/brokering real estate without a license is illegal. Now, wholesalers will say that they are not selling homes, but are selling contracts and this is kind of a gray area. 

The Arizona Department of Real Estate (ADRE) receives numerous calls and complaints from the public and real estate professionals related to the practice of unlicensed activity and wholesaling.

Specifically and over the past few years, the practice of wholesaling property has generated complaints about deceptive sales tactics, predatory contracts and clouding title to properties. The AZ law about wholesaling requires real estate wholesale sellers and buyers to disclose in writing the fact that they are acting as a wholesale buyer or seller in any residential real property transaction. It does not prohibit one from wholesaling.

@Michael Cotton

Where exactly are you looking? Westside duplexes have been going up in value from what I've seen and there isn't much on the market as of now.

Nobody wants to lose equity, but Cleveland is a buy and hold market for cash flow and not appreciation. Regular old houses don't hold much value unless you're in one of the pricier/trendier neighborhoods. Renovated homes seem to be the ones that actually appreciate in value.

Get an accountant but if you want something cheap (free) and effective, try using Stessa.

@Jonah Downs

What is your preference? What school are you looking at? ASREB has livestream classes so you wouldn't have to go into the classroom if that is what you are looking for. 

@Michael Adamo

I agree that prices of MFR's are still way overinflated, but I a believer in offering what you think the property is worth and take the list price as a suggestion until I can arrive at a number that hits my targets. I end up having a lot of offers rejected, but I am in the business of buying deals and not just collecting properties.

Keep searching and find a number that works for you and go from there. Good luck with the hunt.

@Michael Adamo

Here's a 4-plex near Bell Rd. and the 51. Not that far from Scottsdale and in a decent area. 4-plex going for 668k. https://www.flexmls.com/share/.... Cap rates have been in the 5% range for the last few years on MF in Phoenix. Rents have been flatlining and falling in some areas so that is something to take into account, but they're still pretty high overall.

You can also look into a single family with a casita as that has become a very popular house hack in recent years.https://www.flexmls.com/share/... or https://www.flexmls.com/share/... are a few examples.

@Michael Adamo

400k in SoCal isn't going to go very far at all nor in Phoenix. I'm still seeing MFR's for around 250k-300k/unit. I'm seeing 11 such properties under 400k in the Phoenix Metro area.

You may want to consider selling the LA property to leverage that $2M into multiple properties where you could househack and provide shelter for your family as well. Put a larger down payment to get to the 400k you've been approved for and get a property in a better area out here. The 400k stuff is going to be in the rougher parts of town and I'm sure you'd want to avoid that if you can.