All Forum Posts by: Chris Youssi

I’m with Terrell. I have owned both - far n away I prefer SFR as there is no ( currently own 30 SFR N 35 attached townhomes - Condos ) Comparison in my opinion. Following are my reasons : 1.) much better appreciation 2.) more stable tenants 3.) higher rents = higher returns. 4.) I average $300 per month cash flow per unit with an average mortgage amount around $65,000. All my properties are B couple C + with 65% LTV 5.) condos and townhomes are similar in that they are about 65% LTV however they only average $150 per month cash flow and the average loan amount is $100,000 . When we purchase a property because of our discipline with sales price we rehab them and fix them to the 9’s so there is no deferred maintenance issues. Our approach has been successful as we have achieved al this over the last 24 minutes. I’m not saying it’s perfect but it works for us. Best wishes Chris

The 10 property rule only applies to secondary market funding. A commercial loan or loans has nothing to do with the secondary market so yes you would qualify for 10 new loans in the secondary market If you were to refinance with a commercial loan.Secondary market meaning 30 year 15 year fixed rates. Also keep in mind it’s 10 properties not 10 units in other words you could technically get fixed rate financing for up to 40 units. I speak on all these issues from personal experience. The key to obtaining this type of financing is you must be dealing with a competent lender and they understand these rules for investors in the secondary market. Hope this helps go get em! Chris

Sorry Craig wish we could b there but that’s really not true - Down here in Galápagos Islands going diving tomorrow . Looking forward to August !

Welcome to REI and the land of opportunity. First thing I would no is enter keyword Atlanta - Marietta etc and narrow your search for meet ups / meetings/ networking . Second buy the book “ richest man in Babylon“ by George S Clason. Great read on financial fundamentals all around and reminder of the same principles apply in real estate. Specifically there is a story of a man who has an opportunity and not take advantage and loses great income potential. Finally get yourself a good realtor who specializes in your price point location etc. Do not be intimidated there’s a lot on here in your area help with your first purchase and beyond. Best wishes Chris

Welcome to the BP Community. I’ve been investing for 30+ years and considered myself somewhat savvy. Quickly found out lots to learn and countless members on here willing to help . Based upon the response to your thread sounds like you have several willing to network and give you a hand up . Great news! Best wishes Chris

Hilarious I lol Caleb and gave you a 👍

Mike it sounds to me like you’re getting a poor percent return when you consider equity versus cash. Pretty anemic in my mind however You must also consider tenants have paid for your appreciation and paid for your debt reduction. Not sure how to calculate that number that certainly a factor in determining value / peace of mind. Personally, I have 50% equally mixed between attached ( 60 units +|- ) housing and single-family residential and I prefer the SFR hands down to any other investment strategy. They appreciate faster, easier to sell usually rent quicker less maintenance. My thoughts Chris

Bukka , I am using existing properties security deposits. The new purchases on the high side may only count for 2% of this account. We have 60-65 rentals at any given time so money is always moving in and out of this account. Not sure of your average price point, have to assume its high in Cali . However, key is they need equity in a deal and with this method it's already just sitting idle in the account and never falls below the threshold of their requirements because our vacancy rate is so low .54% and 1.24% YTD with our 2 companies.

I would stay away from national lenders and try community banks or credit unions. Let me know how you progress!I

Bukka couple of ideas that maybe you have already considered.

1.) Talk to a commercial lender and obtain a line of credit. I have purchased 32 SFR since 2015 thru the end of 2017 using this method and regarding down payment see # 2

2.) Use the security deposits you hold for collateral. Eg... My lender requires 20% down for the original purchase ( he uses my security deposits for the 20% so in essence he koans me 100% of purchase price ) - I then pay out of pocket for any rehab costs ( here is where you use your CC ) then we get it reappraised I refinance pay off original loan pay myself back and then repeat often having as many as 5 props at a time now down to 3 we are rehabbing.

So... I get into my SFR for $0 only out rehab $ for a very short period of time usually about 90 days then keep growing! Try this out and let me know or scenario # 2

Do the same thing with a retired friend/family member who is making 2% on their money offer them 5/6 % place it in the "security deposit acct" and repeat.

Keep me posted!

Charlie, congrats on your hard work and discipline.  Lots of wisdom on this thread from seasoned investors. I have only one thing to add: Investors my age love to mentor young adults like yourself who are thirsty for knowledge and willing to do the heavy lifting. Find one on here or elsewhere in your local market. I try to offer a young adult that shows sincere interest and is motivated after passing some ez softball tests a one on one with me every week for 6 months. Yesterday on fathers day one of them wished me a happy fathers day was pretty thoughtful made my day! Best wishes and welcome to the jungle always room for more!