All Forum Posts by: David Campbell

I've lived in El Paso for nearly 6 years (2012-2018) and have one rental property there. The advice i've read above seems spot on. Personally, i'm an optimist and believe there is opportunity everywhere-this includes El Paso. However, the thing that concerns me is the current state of supply and demand. Its definitely a renters market right now. There was a surge of homes and apartments that's been built starting in '09 and hasn't stopped since. Many soldiers are guaranteed a VA loan and more often then not, paying a mortgage is cheaper then the current rental rates. This has lead a lot of military soldiers to invest in homes that they later rent out when they change duty stations.

The newer neighborhoods on the Far east side are beautiful but it seems they start to deteriorate once the original owner moves out and new renters come in. Its barely noticeable at first. It starts off with one or 2 homes but as the years pass it becomes half the neighborhood with "for rent" signs in front and the weeds begin to sprout up.

With that said, I go back to my original point where there is money to be made.

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@Jon Ankenbauer wow, I've only made it through 17 podcasts! Sounds like you are motivated and ready to start, good luck!

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Also, based on the conversation I had with the agent, the amount of costs I would have to pay to purchase a property based on the max amount of $275k is $7-8k including closing costs, appraisals, title work, and so on. I don't know what that's based on or how reliable that is though.

To be clear, I have no intentions of just jumping right into this. That's why I came here to get the opinions of people who are familiar with the process and have the knowledge to move forward. Thanks for the input!

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@Chris Mason but Quicken does ask for that info (W2s, paystubs, bank statements, etc).

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I was hoping to get some input from anyone who has done financing through Quicken Loans.

It's somewhat interesting (I think) the way I got into contact with them. I was reading a blog post written by a BiggerPockets member about investing in multi family properties using an FHA loan and the blog included a link to a webpage to find out details for such loans based on location. I filled out the basic info and immediately after I hit submit, I got a call from Quicken Loans! It kinda freaked me out a bit at how fast they responded!

I ended up talking to a gentlemen who gave me his info and asked for my background, financial situation, etc. Since I got the call so quickly and I've never purchased a property before, I was quite hesitant at first, but he promptly gave me his info so I was able to look up his credentials. Long story short, I got pre-approved for $275,000! I haven't done anything past this yet, but I'm waiting for a call/email from a realtor in the area so I can move forward.

It's funny that this happened because I have been hesitant to move forward out of fear, inexperience, etc. I'm glad I got the call because now it is forcing me to take action which I now is huge. The only other issue right now is figuring out if I actually want to purchase a property here (since there is a possibility I'll be moving to a new base -- not quite sure) but that's a whole other topic....

Anyway, all that to ask...have any of you worked with Quicken Loans? If so, what kind of financing did you use? VA Loan? FHA Loan?...Did you work with the realtor they suggested and how was that experience?

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@David Faulkner interesting. Lots of new info for me in that explanation, thanks for the insight!

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Originally posted by @David Faulkner:

Yes, I have experience with forced appreciation via rehabs. The best way to learn is by doing hands on, part time, in your local market, and often on your primary residence first. For a newbie, out of state is NOT a practical or realistic way to do it IMO. Yes, it is possible, but the risks are many and largely unknown as of yet to a novice investor. I would also add that these rehabs will take just as much effort, time, and money (less money actually if you self manage and do some yourself) ... the main difference is that you add 2x-3x to the value add profits generated by the same rehab in most cases compared to less expensive out of state markets. For example, +$10,000 NOI from rehab => $100k value add in an out of state 10 CAP market ($10k/0.1) but $200k value add in a local 5 CAP market ($10k/0.05).

Can you explain your example? I found this post based on my keywords and I'm trying to understand what you are explaining. I understand that CAP rate is the cash flow you generate based off of NOI/your all cash investment. Why is it that the CAP market is usually better in-state? Is that based on doing repairs yourself? What exactly is the CAP market?

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For anybody who has done this before, is this a common method? Seems legit

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Thanks everyone!

@Omar Merced, I found that group when searching meetup.com. I may have to check it out

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Oops, guess I was wrong. Please ignore haha

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All Forum Posts by: David Campbell

David Campbell has started 3 posts and replied 14 times.

Post: El Paso Rental Market

Post: New Eager Investor from Denver

Post: Lighting Fast Pre-Approval

Post: Lighting Fast Pre-Approval

Post: Lighting Fast Pre-Approval

Post: Rehab Multifamily Property for Part Time Out of State Investors?

Post: Rehab Multifamily Property for Part Time Out of State Investors?

Post: WANTED: Creative Financing Advice for Beginner Investor!

Post: Local REIA - Las Vegas

Post: Hello, I'm Tyler, new member from Smithsburg, MD