All Forum Posts by: Carlos Ptriawan

what city/state is this ?

Yes, in 190 seconds usually I know if the property is a bad or good investment due to their open inspection report/receipt and open ledger. I scanned 30 houses daily and looking for a hidden gem. These days it's hard to find. Many sellers just offload their junk houses. This procedure is almost impossible unless there's certain disclosure to a property.

The bad thing, the good house is gone in 90 seconds. You are competing with lot of professional and funds in RS.

many people don't realize the potential of Roofstock. This is actually the way the property (especially MLS) should be sold to open market: with auction market and open transparent disclosure(inspection report and open ledger, so on). What RS does, it creates a tangible new niche market for a rental property that any property shall be as transparent as possible.

Maybe similar to CarMax in used car market (except Carmax makes an undisclosed profit).

At the beginning, I'm also reluctant to have an investment with RS but when I attended their office, meet their officer, there's no selling pressure, they're pretty much only the broker of the open rental market. 

Looking at the early investor of RS such as Khosla, I believe they're on right path to be successful.

Some houses in portfolio sections are not certified, some houses don't have pictures, most don't have an inspection report. Many don't even have photos. But investor needs to buy 3 out of 100 houses for example and pay the marketplace fee. The portfolio section I feels more like buying from the wholesale, risky but fun :) There's a ton of improvement they can do to make Portfolio section more informative.

Oh btw, another downside: some of the assumptions in RS are really not that accurate. There should be a warning somewhere mentioning this to beginner investors to do double diligence. But that's true for everything that due diligence is a must.

Now I give you the real advantage of buying from Roofstock: they have a better negotiation rate with Property Management that you're working with. So if you're buying from Turnkeyand paying 10% for PM, the same PM charges only 8% for the same property. This is what I like the most about RS.

However you could actually find a similar deal from MLS or Turnkey, I'm more venturing this route due to low inventory in RS.

There's few downside Roofstock (that can be improved): The inventory are very very very low these days.....Second, the portfolio section is not really that friendly for buyers.

Other than that, it's 6 star company. I visited their office before I made transactions.

HELOC is better when LTV took is below 40%. 30-year mortgage cashout refi is better when LTV is above 75%. 10/15 year mortgage is usually beat HELOC rates. There're some banks that can even give > 90% but of coz, the rate has gone higher.
To answer your question scientifically you just need to sun a simple HELOC vs Mortgage amortization calculator. So LTV is the key here.

Here's the issue that I heard during the investor ADU meeting: First is appraisal, the appraisal doesn't value the ADU accordingly so the builder in this case is end up losing money and advising people not to build ADU. Second is building cost, some builder charges very high cost to build an ADU that will not help in any way when it's being rented out. The third issue is there're so many city regulations that's hard to negotiate.

I think ADU shall work for some people but for many it doesn't.

Are you saying that it's possible for me to buy investment property using a residential mortgage? 

They can do purchase, cash-out refi, even rehab loan for an investment property with an interest rate below 3%. Just find a lender that's investment-friendly though (that's my experiences).

This is the most FAQ question and I can summary here:
- Cost to setup LLC is expensive especially in CA
- You could cover it by having good liability + umbrella
- And most importantly, I can't find regular banks that's willing to lend to an LLC ( so far )

I think LLC is worthed if you want to buy apartments, but then I need to borrow money from HML which is costly (I may not be true here) . Then I go back with just SFR/MF with individual name so we can maximize 10 financed homes.