All Forum Posts by: Vickie Y.

Will be there! 

Nice! Great job! Used to live in Lakewood myself, so it's great to see such a beautiful transformation :) Would you mind going into detail about the landscaping in the front and back yards? 

@Dilan Pradhan, as a relative newbie myself looking for a good area to invest (I'm in a very expensive market too - southern CA), I looked for what a few people had already mentioned: low property taxes, low insurance costs, a newer property in good shape with low anticipated capex and repairs. For a rental, other than your mortgage, these will be your major expenses. The nice thing is that this information is very readily available and are more "fixed". Figure out what those are in the market you are looking in, and you can back-calculate to figure out what purchase price you can afford to make it a worthy investment. See what the comps are for in that area, and you'll get a rough idea if that is a market you could/should invest in. In the end, it is about making sure the numbers work. Best of luck! 

@Brian Rule, Hey Brian! I'm from your neck of the woods, down the street :) Closing on my first rental (a SFH in Arizona) next week! But ideally, I'd like to bring investing closer to home so I am looking for the same - small multifamily in the LA/OC area in the near future as well. Would love to connect and chat if you're up for it, just send me a PM. Hope to talk soon!

@Chris Le, welcome to BP! It definitely is an incredible community here with a wealth of information and I am sure that your experience in insuring commercial and residential properties will be very helpful! 

Great advice, thank you @Chris Mason!!

Thanks @Chris Mason That's actually a great point - the area I'm looking in is newer builds (~10 years old) so not much repair to be done or added. If anything, mostly cosmetic. So I doubt there will be much value added in terms of the ARV.

In that case, I suppose I would fall into just wanting to rate/term refinance the hard money. Are there lenders that will do this? Are they conventional banks, mortgage brokers, portfolio lenders, etc?? 

Hi everyone, 

Been on the hunt for SFH rental. Currently have enough to put down a conventional 20% down on a 150-200k SFH. However, I am trying to think for the long-term, and if I am to meet my goal of 20 properties in 10 years, I won't be able to use my own money to sustain this. Furthermore, I doubt any conventional bank will be willing to lend past 4-5 properties.

My question is this: 

Is it possible to use a Hard Money Loan to purchase the SFH rental in cash --> then use a CASH OUT refinance to put the SFH under a "conventional" loan?

So in this scenario: 

Purchase home for 175k in CASH using hard money --> put 10k of repairs into it --> Put tenant in --> ARV now 200k (cash in 185k) --> CASH OUT REFINANCE 200k @ X % over 30 years --> pay back HML --> cash flow off property (rent - new mortgage)

1) Is this just a convoluted way of talking about the "BRRR" strategy?

2) What kind of lender would be willing to do a cash-out refinance?

3) I've heard of "seasoning periods" - does that mean I would have to own the property for X number of months or years prior to being able to refinance? 

4) In the ideal situation, how long does the process usually take from: under contract --> cash refinanced out - and HML paid back?

Thank you again everyone for all of your help and advice! 

A HUGE thank you, to each and every one of you, for your help and referrals. I will be reaching out to everyone you guys recommended by the end of the week. If anyone else has great recommendations, would love to keep it coming! Have a fantastic week, everyone. 

Welcome to BP, Alex! I'm from the OC as well :) Are you entertaining any ideas about which avenue you'd like to pursue (buy and hold; fix and flips, etc)?