All Forum Posts by: David Zheng

You're only two years younger than me so I totally get you :)

Here's a little tip from what I've learned in owning my first couple rentals.

Have your own cash or a co-signers cash up front to buy one or two rentals to get started and make sure you have good credit. It's very hard to do a no money down deal when you first start out so don't focus on that. Build good relationships with banks and lenders and get them to trust you through your first couple places.

After that, cashflow and properties owned start ramping up! and don't forget to keep learning and reinvesting your cashflow!

good luck!

Hi!

I've been floating around the forums for some time but I guess I should put out an official introduction!

New 25 year old investor from St.Louis, MO

Full time at Wells Fargo in the Mortgage backed securities market and just recently got into real estate late of last year. In December 2015, I bought my first rental property and rented it out within a couple days. I figured I would buy one property a year until I was a millionaire. In January, I made a new years resolution to own two rental properties in 2016. Shortly after, I closed my second rental and again, rented it out within a couple days. Found Bigger pockets and have been actively reading and researching....

Now I'm about to close on my third rental and looking at another couple to buy this summer! I've learned so much about the real estate market (a lot from bp) and I'm loving the challenge and the rewards that follow.

I've realized that the only limitation to being a great real estate investor is myself. That if I put in the sacrifice and work, I can do anything. Crazy to think just 5 months ago I was happy with one property a year and now I'm close to 4-5 in my first 6 months!

Hoping to work with some of you in the future and thank you for sharing your wealth of knowledge!

-David

Currently I only own condos in the area. There's a very black and white line between the SFH you can get in the area. They are either extremely old and rundown or they are old fashioned but well maintained. Very rare to get new updated homes and even if you find one, they are super expensive

Yup!

heres an average breakdown of my 2bed/1bath units

mortgage+insurance+taxes = $575
HOA= $180

Rent/month = $1400

I manage the properties myself. Unlike a lot of other investors, I don't account for vacancies or expenses because I trust in my abilities to find tenants/make simple fixes. I put all my cashflow in a "real estate" account and simply use that to either buy more places or use as a emergency fund.

I actually live in a condo with the intention of renting it out after I'm done and also renting out two other condo units. Working on a fourth as we speak.

I personally don't think its a horrible idea as long as you can look at the area, neighbors, building/assessment history and if they have crazy HOA fee raises in the past. If all those are ok, I don't think it's a bad idea. Usually the HOA board is filled with current owners and so they generally try to be pretty fair with fees in order to keep owners happy. I'm pretty satisfied not having to deal with hot water heaters, lawn care, the roof, etc. etc. Its a cost that's shared by everyone and therefore much cheaper than having to fix on my own.

Consider newer buildings too as they will have far less to worry about. My condos are cashflowing really well and I haven't really had any issues with tenants or maintenance.

Hi!

So I have a partner who is cosigning a rental with me just for the sake of using her capital as the downpayment. However she wants to be off the title so it doesn't tie up her credit. I've been reading about Quitdeeds, but Do I have to refinance in order to get her off?

I would rather not fork over a couple grand at closing just to transfer all ownership to me. Also how long before I am legally allowed to take her off?

-David

the answer to your problem is a multifamily. you can use a 5% conventional or 3.5% fha loan on anything with less than 4 units.

Live in 1 and rent the other 3 out :)

I am a recent graduate ('13) and am growing a college student rental empire (at 4 properties)

My way is pretty unconventional and potentially dangerous but its quick and easy for me

I come from Washington U in St.Louis, a really expensive and highly ranked private school. I rent out mostly to these students and being one myself I know you have to have money or be somewhat responsible to get in.

my first criteria: the Major

I generally like the Pre-Med and biomedical engineer students because they are just studying all the time
I also like architect students. They are pretty messy and always leave projects everywhere, but are generally not home and busy in their studios.

I was a bschool student and I know most of us were party hardy so I'm actually reluctant to rent to bschool students

but my real safety net is that I absolutely need a parental cosigner and 2 months of rent as a security deposit.

Luckily with most student renters you only need to worry about them for a semester or two and eviction is a pain they don't want to deal with when they have to study.

The better the university, the safer you can feel with tenants

As everyone else said, experience along with good credit and a little upfront cash is important. I don't know any lender that will lend 100% of a deal to a first time investor.

@Peter MacKercher

Thanks for the words of caution!
 I'm actually not in med school I said that wrong. my parents work there and I've been there a lot but I'm currently a mortgage backed security consultant at wells Fargo haha. The building is in good condition which is why I like it. I'm more about properties that don't require much or any fixing if possible.

In terms of being able to manage, I have had no problems with my other 2 units so far. Obviously 12 units if totally different but I have a lot of free time and with it being down the street, I can walk over for any issues.

My parents have been renting properties for 3-4 years now so I know they can help me if really needed and I also know they will cover any extreme costs that we all fail to notice in the case I do acquire this. (at the cost of my soul)

Essentially I feel like I have a good grasp of whats at risk and whats required. Again, I'm just really stuck at looking for financing.