All Forum Posts by: Carlos Ptriawan

Yosef how do you select the property manager ? is it same as the previous owner property manager ? how's the inspection report being done ?

Despite the regulation. It only makes sense to put at least 30% downpayment for any rental property. Even with 25% investor is taking too much risk. The problem with bigger pocket is they keep promoting 100% loan or minimum loan for any investments, which is extremely risky.

With blockfi crypto program you can get loan for a rehab
https://blockfi.com/home-loans

Also when people not buying 'retail', usually there's a catch somewhere. I found two extremes of investors in Biggerpockets:

1. Those who have found good deals and still doing analysis paralysis with unlimited what-ifs and never take action
2. Those who found a bad deal but insist it's a good deal (eg" negative cf property in positive cf market)

Dude, you shall listen to your existing tenant, if they leave the gov. will not pay for your loss.

In a room rental setting, it's very common that the place is usually the same gender only. It's safe for everybody.

I am more buying in this market from MLS (market retail) for long term buy and hold. If you don't want to buy that property, please give it to me :) I'll be the buyer.

Hi, Is it okay to find a tenant during the renovation phase? Considering they will move post-rehab. The rehab itself is very light, only involves some cleaning, window replacement, and exterior painting only.

Since I invest in both place I could say the following:
- Relatively, Alabama is cheaper than Ohio for what you get
- However, Ohio is perhaps better to compare to Alabama in term of jobs, except if your choice is Huntsville,AL
- Tax is cheaper in AL
- You can find easy 1.0 rent ratio newer SFR in Birmingham or Montgomery, while OH bringing more MF > 1.0 rent ratio. This is the bigger differences between the two.
- Weather is different.

My advice is to invest at both places :)

Here's my pro and cons related to apartment syndication :
Pro:
- The return is achievable in most market condition (covid is an exception)
- I can say 30% of sponsors of MF syndicator are very good.

Now the cons:
- They share the same risk profile with direct investing while investment is indirect and illiquid
- While it's illiquid, other REIT investment that's liquid also produces the same return profile but without appreciation
- The way they make money is heavily dependent on market appreciation as an exit strategy anyway.
- There're other syndications that has a better risk-reward profile: mobile home, storage, NNN, industrial and medical receivables.
- The return/risk of MF is very hyperlocal specific. A good sponsor can make a good return in location B while the same sponsor is losing money in another location.
- Very sensitive to turnover/vacancy. Once the tenancy drops to a certain threshold, their DSCR ratio is very less, and start losing money. You don't want 7-year investment illiquid that's losing money, that's not too smart in my book.
- We need to invest as accredited investors. When we're accredited investor, there're other non-RE related investments as well like VC debt funding, private equity or Litigation financing that has a much much better return.
- The tax is complicated (K1 vs DIV) if you have multiple state investment
- If you invest in the wrong industry at the wrong time, your money is gone. An example is apartment syndication that experiences huge turnover and/or Hotel syndication.
- Due to covid, currently, there's a higher market risk for non-agency CMBS default risks.

Most of the Asian 2nd immigrant, most tech immigrant workers from all over the world, and hardworker Latino/Hispanic community is not leaving CA/Bay Area due to various reasons but the mainly strong community and job presence. Those who're leaving mostly retirees or  citizens that just recently arrive in CA. For many immigrants, CA and Bay Area is still considerably cheaper than where they're coming from and bringing up the tremendous opportunity.

Some people are blaming politician, but people forgot all politicians sucks anywhere in the world and you can't depend on the gov.