All Forum Posts by: Dennis Nikolaev

@Tj Hines What I hear you say is that a 250k people market may still provide adequate investor infrastructure but the deal flow may be limited?

@Greg Dickerson Thank you for the comment. It feels good to know that I'm not limited to the million+ metros.

@Chris, you say, for the first foray,  stick to 800k+ people market? 500k people is too small.

@Tanesha 

I'm in the same boat, using HELOC.

I found a good deal from Bank of the West.

They drop a whole% if I draw a 100k. However, the broker says, that I can move the funds back on the next day but the discount will stand for the whole term.

Ask them, if there is a limit on how quick you can pay that money back.

Good luck

I'm doing research on the best metro area for multifamily investment. (10 unit+)

I go by positive migration, median income and median home price comparison.

The larger cities tend to score lower on this metric.

Some smaller cities look amazing. For example Myrtle Beach, had a 30% increase in population over 10 years, has good household income and home prices are still well below national average.  The rub is that the population is still about 300k.

I am concerned that smaller cities may not have top level professionals in every field.

Even bigger concern, is that in smaller markets vacancies may fill up slower after repositioning.

It is my first time to go out of state and multifamily. 

Right now I set a threshold of 500 000 residents for the metro.

What threshold would you set?

@Hai Loc,

I want to start with all cash. Just to get comfortable with the process. 

Next deal I'll leverage up.

Also, I will not be looking for a guy rehab as I dont know what I'm doing, yet.

I'm thinking to target 

1. Purchase price 350k

2. Rehab 100k

3. 100k reserves 

What do you think?

Thank you for opening. 

I'm in the final stages of assembling several HELOCs to total 550k to buy an OOC multifamily. I'll be looking for an under maintained property to reposition.

I know, I need to split the money into the 3 piles.

1. Purchase 

2. Rehab

3. Reserves 

The reserves are mostly designated for vacancy period during the repositioning.

How would you split the money?

P.S. it is my first foray into multifamily. 

@Kerry

wow, what a list. 

a personal question: what would you rather take: 4.86%, 70% LTV or 7.85% 80% LTV?

@Dan 

yes, HELOC is a short term stop gap solution on the way to cash out refi of the new property.

Cash out refi is available from many more places. 

@jaysen 

good question. If I liquidate, I got to take losses on sale, an lots of headache and time. 

Besides I'll loose the cash flow that I already have.

HELOC is easy and free untill I actually use it.

Also I like the idea of keeping more units

Thanks for opening my post.

I am getting ready to pull equity on my 6 rental condos in San Diego. About 1.2 million of equity total. Then BRRR

I made a list of 37 institutions, local and national, ever mentioned here to offer HELOCs on investment. 

Well 70% of them dont offer it.. I'm half way through my list.

So far Bank of the West offers a deal of 5.85% but if you jump a few hoops, it comes down to 4.85. That is the best deal so far.

If you know any lender that offers better rates for San Diego, please, share.

Dennis