All Forum Posts by: Derrick Lind

Great post.  Very insightful.  I'm wondering how this guidance is holding up over time.  Real estate moves and changes so fast.

Did you guys ever put something together? I’m an East Bay guy. I’d be curious about mastermind but not so interested in one with a large buy-in cost though.

I’m looking to do OOS buy/holds. Likely in KCMO. Bay Area just doesn’t appear to work for my plans.

I'm also interested in the Blue Springs (or KCMO area in general).  I agree with you guys about getting a home inspection, but how can you do that when you're buying with cash or hard money?  Doesn't that eliminate the benefit of the quick timing?  Is it going to be possible to get good deals on properties and have conventional financing and timelines?  I thought that the only way to get good deals is by making those quick timeline offers.

Seems like the Blue Springs area and many others are tightening up, and more aggressive approaches are required.

Any guidance or thoughts on that idea.

What did you end up deciding?  I’m now trying to decide too. Let me know or if anyone else has any input n this issue. 

Yeah.... no.  Last house I bought in California brought the whole economy down.  My primary in 2005.  lol.

Bay Area is just too pricey, too much competition, and no cash flow.  I want to cash flow for a buy/hold.  Returns are decent if the appreciation holds up, but not sure on that front.  And you'd be negative cash flow to boot.

I'm looking OOS, but not sure what market yet.  I did see a few small MFs in Turlock though that looked interesting, but I'm not quite ready for that yet.  Maybe in a few years.

Again... great posting.  Love to see those updated/final numbers when you get closed up.

@Bret Winegar did you have difficulty finding a lender to make a small loan? I have a property I'm pursuing PP $60k, repair $23k, ARV $115k. One lenders limit lowest amount is $200k for investments. Other one is at 75k. I wanted to finance to purchase but can pay cash from heloc. I'm pursuing a delayed financing too, which may work at those numbers.

So you were able to include the repairs in the loan too? This lender will limit to a % of cost not LTV. Wonder if that cost includes repairs.

Congrats! I’m hoping my first will go as well as yours. Cheers!

@Kevin Moules. What an amazing story. Thx for doing that. The pictures and changes are great to see and hear you ups and downs. Best of luck on future endeavors.

@Nathan G. Thanks. Yeah. I’m thinking just that. If you had some spare cash $200k where would you invest it.

I'm trying to decide whether to see or rent my current primary residence.  I'm planning on buying a larger home, and have access to some other funding for my new down payment if I need to.

Current house - Castro Valley, CA  (SF Bay Area - East Bay)  

950 SF  2 bd / 1ba  good school district.

Zillow value = $680k    Loan = $400k at about 4.25%.  Rents are likely about $2,500, maybe, possibly $3,000 

Options being considered:

1.  Sell - Get about $280k out, minus taxes/costs.  Use for bigger house & fund other real estate purchases.

2.  Cash-out Refi & Rent - Could get about $135k out at 5.25% on a 540k loan; then rent.

3.  Just rent w/ std refi - mortgage is about $2,200 or so.  Could possibly lower some with a lower current rate, but I'm into that sweet, sweet principal paydown now.

I'm new to real estate.  I currently don't have rentals, but am actively pursuing.  Looking OOS.  

I'm wondering how the cash-out refi option can ever work for you guys, vs a more standard loan down around 3.6% or so. That's a big difference in the PITI.

The rental option just doesn't look good at all.  I'm wondering how anyone can make CA rentals work.  I'm thinking that I'm better off packing up and looking elsewhere.  Bay Area market is pretty crazy right now.  Long term I'm looking for long-term growth, so I'm willing to sacrifice some cash flow in the short term, but it's not even close.

Am I not seeing something here?

I'm totally interested. Looking to learn more about out of state REI. Can't make this one but will watch for next one.