All Forum Posts by: Daniel Jodrey

Hello BP

I would like to see if any investors / real estate agents from Spokane would like to connect. I am interested in Multi Family there. I currently live in California and market here is very expensive. I went to school at WSU and know the Spokane area. There would be a good chance my wife and I eventually move there but for now would be out of state. Passively looking at multi families there i see that some properties come close to the 1% rule. I have close friends living in Spokane as well that have and can help. Looking forward to hearing from anyone in the Spokane area that can lend some help. I know that an Amazon Fulfillment center is being built there as well which i feel can only help the market and home prices.

Best regards,

Daniel

Hello BP,

Looking for any investors/agents/contractors that invest/work in or near Lompoc, CA. I am interested to learn more about this city and market. Any real estate agents in this area that could possibly help to set me up on a MLS portal would be great. Interested in Multi Families!

I am in Santa Barbara and looking to buy and commute as i dont have enough money to play the game here in SB.

Been looking at Ventura area for a while but also so is very expensive. Seems that Santa Maria and Lompoc area is the closest, most affordable market to SB. Curious to hear others that may have had some work or success in these cities

Thank you,

Daniel

Daniel

@Malia Domingo

Hey Malia! I live in SB and unfortunately do not know much about the air bnb laws. However, i would love to offer any assistance to you in any way you may need. I am an aspiring investor that has yet to get my first property and experience. I am looking everyday at MLS listings and running numbers. We are mainly looking in Ventura and Oxnard as pricing is somewhat more reasonable that what we have here in Santa Barbara. If i can connect with nearby investors, and be able to learn something and earn experience, i would be happy to. Let me know!

Hello everyone, thank you all so much for the feedback. I understand and agree with everything that has been said. I know that ultimately i need to be factoring in all costs. If i am being honest, running the numbers on the property i am looking at now, including a PMI and mortgage insurance and all variable expenses, where i believe i can get rents on both sides the property would come out even. However again, we would not be renting out both sides in the beginning but we would live in one side.

I feel that in Southern California it is so rare to see anything that works. I would say that this is most likely true in most parts of the country these days from what i am reading and hearing.

I feel our goals are slightly different at this point in the game and i am trying to gage on how our current situation can affect our decision making. This would be our first property , and one that we are trying to live in. The property would absolutely be a value add on as it is old and simple updates can make a big difference (paint, cupboards, landscaping etc). We really at this point want to get in the game and supplement our monthly cost. Currently we pay $1700 in rent for a very small studio in Santa Barbara. In my mind, if i can find a duplex to house hack and have that other side rent payment make my mortgage less then $1700, i am starting off well. And then the goal is when we are ready to move out (would be several years after) have the second half rented and be cash flowing. I just cant get over the PMI and how that crushes my numbers, and we do not have the money to put 20% down. I know that PMI is not forever and will go away after a certain %LTV.

If you can make sense of anything i am saying let me know. Thank you all again for all your time and feedback.

@Twana Rasoul i agree. i am just thinking that i plan to use my future savings from my job, to help me fix up my property. So am i double dipping in also taking out those expenses when running numbers? as most people know probably very well, the difference in several hundred dollars in a monthly income can make a big difference in COC ROI and cash flow.

@Cameron Lambo i would say not necessarily not self sustaining. The reason I am asking is because I have a property I see is interesting and is the first one in a LONG time to come up that is a Duplex in SOCAL that is under $500k and not a complete wreck. My main issue is that i would be looking to put down less then 20% but the PMI would make it so i am not cash flowing. Now i do plan to live in this property so of course the first goal is to supplement my mortgage payments, gain some equity and experience.

I am factoring all expenses and it shows cash flow but not high and COC is 5-6%. This isnt very good but is truly the best numbers i have seen on a duplex in a very long time (this is also going off the assumption they would accept my low offer).

I am ultimately having trouble finding my start in real estate. My ultimate and main goal for first step and first property is to find a Multi Family that i can live in, work on it through the year + that i would be living there, supplement as much of my mortgage as possible from other side rental income, and when i am ready to move out and do it all over again, i will be cash flowing with the second side rented.

@Account Closed i agree, good to hear it from someone else. 

Any thoughts on my above part regarding W2 job income?

Hello BP!

I have been studying BP and investing for several years now and have a pretty good idea of what i want. The issue is actually finding deals where the numbers work and play out.

When analyzing different properties, by not calculating repairs and maintenance costs, cap ex costs, vacancy costs etc. , the numbers will sometimes get me around 12% COC ROI and $300-$450 monthly cash flow.

I still have a sturdy W2 job that brings me about $5k each month. All money i am saving for my W2 i am planning to put toward my real estate goals and dreams and costs. Is this a good thought pattern to have or even logical? Knowing that money im saving from my W2 will be going towards these certain expenses. I imagine these expenses are very important to factor if your sole job is real estate investing and that is your only source of income.

I also am wondering if it is offensive or bad strategy to low ball an offer. For example, if there is a property that is asking $499,000 but i put in an offer for $400k because the numbers work with that, is that a bad move? Could the realtor/owner not be willing to even entertain any further offers if it is too low?

Thank you all!

Daniel