All Forum Posts by: Carlos Ptriawan

It only makes sense to get 30-year financing on rental. Without 30 year financing, I'd rather invest in stock market. Why? The gov. pays your money.

The way I did, I split my portfolio, half in the local market for appreciation and bit cash flow (you can still cashflow in San Diego) and Half invested in OOS for cashflow. It doesn't matter where is the OOS (but not in TX or AZ). In long run the San Diego purchase is useful for retirement, while OOS income is for paying the bills :)

If you compare CA vs TX vs AZ, CA is much better than these two since you're local to CA. These three are appreciating market. If you invest OOS, invest solely for cash flow which is mostly midwest.

That's about right for full rehab. Literally you only buy the land and structure.

I stopped after the 12th unit because money is gone spent for rehab :) LOL

The cap rate even mainly uses for commercial has strong intricacies to entry-level home price and entry-level house rent price. These numbers usually match based on market/zip code and neighborhood class. 

After that, then the rest of the mortgage, DSCR, and other good stuff takes to play, but that's the easy part once ( of course you know) cap rate is known.

The highest cap rate market like Indiana and lowest cap rate market like CA has different math and problem that investors can solve depending on the needs.

What newbie investor doesn't realize is they don't buy a house but they buy set configuration of numbers.

Cap rate means absolutely nothing for SFHs.
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Absolutely wrong.

Dave let me know if you know or have the people resources that can underwrite for oil and gas investments. I've contacted some 1031 oil & gas in the past but walk away because I don't understand the risk involved and how to verify their numbers. I knew some of them are offering DST as well and have much better return than SFR.

Use data. Find out the cap rate for area is #1 priority and the relative value for the property. Then verify the house condition.

Where is it actually? In US of A there're only 20 markets that by default has positive cash flow. In boundary is city like San Antio,TX. If you're looking at highly appreciating market like in CA and look for CF, it's possible but much much much more difficult :)

The problem with turnkey is almost similar to syndicator. We need to do a heavy scrutinize of the turnkey/sponsor. The last turnkey co. that I work with is trying to sell me a house with K&T wiring and labeled it as turnkey house :) LOL , the other one is selling 4 BR house while title is only having three BR.

Some indicator of good turnkey co. : they have a process in place and did an independent inspection prior selling it to us. 

Ask the lender for FHA 203K Loan for ADU project. There're few banks that specialize on this.