All Forum Posts by: David Zheng

sounds complicated to me especially with a three way LLC involved...honestly it depends on the sellers reason for wanting to sell. Only owning it less than a year seems like they just want out of the business, need emergency money, or are flipping it.

Never hurts to ask, but you're probably better off selling your properties and then using cash

I agree with everyone else on getting a multifamily. Personally it depends on the area you are investing in.

you find a duplex, triplex, 4plex in the same zip code. 2 unit sells for 100k, 3 unit sells for 140k, and 4 unit sells for 175k. obviously doing a simple per unit calculation shows the 4 unit is the better deal assuming same unit size and condition of all the properties.

and bigger is almost always better. would you rather have to service 2 duplexes both with difference meters, flooring, types of water heaters, plumbing, etc

or would you rather service a 4plex where all the plumbing and electric wire, etc are basically the same. its easier to fix similar things if something were to go wrong in the 4 unit

I just saw the pictures. that is absolutely awesome! I love it :)

Hey all!

Just wondering if anyone has success stories (flipping, buy and holds, etc.) where they made thousands by just using a phone and a computer.

For example, you saw a beat up house for sale while driving, looked it up online, saw pics of it, called with an offer, got it accepted, called a lender, called a contractor to fix it, called an agent to sell it for you, accepted an offer, and cashed out. No stepping into the home, no buying materials. Just straight up did everything online/with phone calls!

I would especially be interested in hearing if anyone has done this with rentals and no partners

@Anna Myers I totally understand your situation and many people have walked that path in front of you. I personally wouldn't invest and manage out of my immediate area especially with the 5 properties I have...yet. When my capital and emergency funds are very high and I have a lot of properties (probably 15+) I will consider management. I think the key in getting good contractors is using them and seeing their work over and over, which is why I wouldn't just hire anyone in a place im not familiar with and can't visit to view their work all the time.

This was awesome thank you!

Just wanted to see what the limit was of people who self manage their properties (and also what kind...condo, SFH, multies, large commercial, etc.)

I've seen some do up to 20 units by themselves!

My second question is do you self manage these, while holding a full time job or is managing them full time for you!

Lets hear em :)

Agreed with the post above me. You do need 2years of income history to work with most banks these days if you want to go Freddie/fannie/FHA. however if your parents can loan you money or co sign you can do a portfolio but you'll need 25-30% for those

Yes, if you find a co-signer, they can put up the entire downpayment without much issue unless both of your debt to income levels are really low or they have horrendous credit. However, the co-signer will also need to trust you because this is debt that gets added to their name and if you screw up, they get screwed too.

An unconventional financing option is doing a portfolio loan and getting gift money from a family/friend. even with portfolio loans, banks don't let you get the downpayment from other loans or hard money lenders.

If this is your first rental, there is slim to no chance in getting a conventional loan on rental with 0% of your own money. sorry to say but no one is going to trust a new investor with 0 skin in the game.

You almost always have to throw your own capital at the first couple properties you buy in order to build credit with lenders.

if you really want to do 0%, you would have to get that from friends or family/have a co-signer