All Forum Posts by: Chris Vail

@Joe Villeneuve I have done my first project based off of your idea's and want to say thank you.  I am not sure which post it was but it was some time last year where I saw you speaking of this process on a forum in BP, and I thought to myself "why not".  I wasn't able to pull out all of my cash that I had put in but only having around 15k in a 195k appraised property I will take.  I just wanted to give credit where credit was due for the idea, so thank you.  And for those wondering yes it does work even in California :), It just costs a bit more up front and the cash flow is not as great, but it's still there.

@Brennen Cook I hope for your sake you are correct.  Price per sq ft does not translate 100%, or at least I have not seen that in other neighborhoods.  Maybe an agent can weigh in on this that is familiar with the area, as I would be interested in what they would say.

Update on this property:

I am most of the way through refinancing the property, I estimated the value at 195k when I went in to get the refinance and it was approved at 195k on Tuesday after the appraisal.  Once the loan closes I will have ~ 15,000 left in the property of my initial cash, 39,000 of equity still sitting in the property (loan will be 80% of value), and the itch to go find the next one.

The tenants have been great and it is nice to see the property filled with folks that are doing such a good job with the place and making memories.

Thank you to everyone that has helped with this process, and a big thanks to BP for being such a great resource that has helped me on this journey.

@Brennen Cook I am trying to figure out what you are going to do to the house that is going to push the value up to 480,000.  Two houses down at 1325 1st ave sold on 2/20/2015 for 410k  it was a nicely (completely) rehabbed 3 bed 2 bath granted it was only 1224 sq ft versus your 3 bed 1.5 bath that is 1378 sq ft however both lots are 5,227 sq ft.  I am just struggling with how you are planing to add an additional 70,000 in value over the house that is the perfect comp for the area of what should be able to expect.  Just playing devils advocate here as I can't wrap my head around what you could possibly do to add 70,000 in value.

@Matt Leonard Have you contacted any PM to find out what they will charge to manage them or even if they will?  There is a reason those properties are listed at the prices they are versus other properties in Sacramento.

If you are planning to self manage them assume you will be highly involved with properties in this area of sacramento.  Depending on which part of Natomas your other property is in the properties you are talking about are in very different types of neighborhoods.  

My 2 cents.  If you haven't already driven by the neighborhoods I would highly recommend it.

@Jessica Sorensen I would echo what @Andrew Davis has said above, all of the fees will be in the area of 4-5k more than likely, you could ask the seller if he had thought about those fees or you could just eat the cost of it as a cost of doing business.  But you will need to factor these into your overall cash need to close the deal as well as part of the return on your invested money.  Your Mortgage company should be able to give you a good faith estimate of what you will be looking at in fees. 

Thanks for the responses and suggestions @Account Closed.

the origination fee seems high to me, I am currently refinancing my rental and it has an origination fee of 1190.  This is from Wells Fargo at 4.75% on a 30 year for around 150k total loan amount.

@Jessica Sorensen Nice job locating a FSBO keep us posted on the progress.

Nice job as always @J Scott, will be waiting for the numbers after you sell.