All Forum Posts by: Leng Thao

Hi Sean,

Welcome to BP. You'll be able to learn everything you need here outside to real life experiences. The 1st step is starting here.

I learn every time I get on this site and the learning never stops.

Leng

@ Mike M,
Who do you use in Fresno and Visalia for PM. I also invest in Fresno. Thanks.

SFH are a bit different. All things being equal, SFH will generally cash flow less.
In regards to SFH, you have to set your cash on cash return desired, minimal amount of cash flow you would consider, etc or basically your criteria. You'd have to take into account vacancy which may depend on the market rental strength (8-16% I have used), maintenance which may be influenced by age of the property, prop mgt fees (which should always be included no matter if you are managing it or not), etc. Generally, I aim for a price to rent ratio of 1.5% or higher (bought for 50K, rents for $750 for example). These would be good starting points. Run the numbers and you'll know if it meets your criteria or not.

@ Mark S., I definitely agree with Will that it would make you a better target as you've got more to lose. If they pull up your info and you've got little of interest, that in and of itself may be enough to deter the attorney from coming after you. The attorney may just tell his/her client that it is not worth it.

I'm in the 30 year camp as well. Crunch the numbers and it will tell you what to do. If you must, as Aaron mentioned above, you can make the extra payments if you like though personally I wouldn't. I'd put that money extra money into another deal. Take care.

Dean,

Good to see you here!

A paid source like rentrange.com can give you a market analysis with MSA vacancy rate, local vacancy rate, and rental market strength. This is a good starting point. Cross checking with your property managers is another source. Additionally, knowing your tenants can give you more ideas as well. For example, section 8 tenants is likely to stay longer than your average tenant, etc.

@Joel, thanks for the analysis and being thorough. It was a nice review.

Welcome to BP. Looking to learn from your experience. I am certain you will like it here at BP.

@ Stoney,
If your aim is cash flow, I'd say 2,3, and 4plexes are great for that. You can usually get more cash flow compared to SFH. The added benefit is you can get low rate conventional loan as well. Once you go beyond 5 units, you're in another ball game altogether and the cost to just get a loan is much higher.
Another thing to consider is that if you are just starting out and you get a SFH, if you have a vacancy, you will have zero cash flow and 100% vacancy in your portfolio (assuming this is your 1st investment property). Now, if you had a duplex and one tenant leaves, your at 50% vacancy and so forth. Not to mention, generally, 1 lawn, 1 roof, and 2-4 tenants sharing this.
I have SFHs, duplexes, and a 4plex. The cash flow is much higher in the 4plex. Hope this helps.

70 cents on the dollar or 80 cents on the dollar, it all depends on the market and/or location. 80 cents on the dollar may yield a potential profit margin in the Bay area worth taking. In contrast, 80 cents on the dollar in a market bearing 80K home prices, most will pass if not all. It's way too thin and risk is not worth it. Just my thoughts after learning from my own challenges.
I hear CL is great for leads, better yet, it's free.

Hi Mitchell,
I personally would not wait to get into real estate. Their are many other things you can do & one of them must be education. One strategy you may consider is buying a personal residence where you would later consider renting out when you purchase another personal residence. I actually had discussions with my lender about this. It will allow you to get into a home for relatively little down that you can later turn into a rental.
Always remember, don't wait to invest but rather invest then wait. Hope that helps.