All Forum Posts by: Account Closed

@Greg Colligan

I definitely would not have kept that as a rental. 2145 on 353k value doesn't really sound like real long term cash flow to me once vacancy and maintenance are factored in. That same 353k can get you close to 5k in rents in certain markets that I have seen firsthand.

BRRR isn't my favorite, I actually think its a terrible strategy unless you're into a pretty large deal with it or the property cash flows really well at market value and you've got nothing better to do with the equity if you sell it. Out of state BRRR can be a hassle. If you don't like remote investing at all, maybe stick to the flip plan until you find a better time to invest in local properties. I just don't know if I'd ever truly invest long long term in CA/OR/WA MFR with rent control, low cash flow, and other unfavorable scenarios for landlords. Short term is a different story.

@Russell Brazil well there's a change of scenery. Are you recommending investors like Sharon do this on a consumer scale? SFr/2-4 unit? Holding on to them? Any particular strategy?

@Jordan Woolf 1450 on 65k is a great ratio provided you can keep the tenants and the cost of repair isn't huge. All the best my friend! Love your seller fi plan.

@Po Chan I hope you purchased a title insurance policy when you first bought the property. You're going to have to file a claim. It may be time consuming, but you should be covered. That's a big oopsie on part of your previous title co. 

@Jordan Woolf I hate those "BOGO" sellers. Whenever they throw a bonus in there, that means some part of the package is something they've been hoping to get rid of for a while lol.

Falls into the same category as the "I'll only sell you A if you buy A & B both at the same time", where B is a freaking junker and they can't dump it lol. There's also the "I'll sell you my portfolio but I want to start with this one" seller. Ha!

I've dealt with asbestos siding before, inspectors in the markets I operate in tend to not be too concerned with it if the integrity of the siding isn't deteriorating heavily. 30k to replace it sounds insane, though. I'm sure you could get it done for way cheaper. 

@Greg Colligan

Nothing wrong with buying and holding now, as long as a buyer is thinking crash protection! Markets that don't crash hard, and high cash flow, maybe working class assets... all things that make me feel comfy with a rental purchase pre-recession. If you flip enough deals, and well, you'll be too flush with cash to just let it sit anyways!

What's the rental you're in contract for looking like? Market? Price? Rent? Is it cash flowing well? 

@Adam E. 

If you go to Davis you'll get higher rents and disproportionately higher price, and likely lower returns unless you take the "rent to 8 students for a 4 bedroom house" approach. A higher revenue method, but a logistical nightmare, with very very seasonal leasing periods. 

Sacramento has crazy rental demand, you'll fill units no problem. You probably won't cash flow a whole lot. I'm not quite sure why one would pursue long term rentals in Sac today- it's expensive, and a volatile market with a history of heavy depreciation during recessions. It's also appreciated immensely over the last market cycle, which doesn't mean it'll crash hard.. but I still believe in gravity. 

I WISH I had the wherewithall to invest heavily in this city from 2010-2012. Unfortunately I was 20 and kid-minded, and I only managed to get into a single SFR in 12 and another in 14. Both appreciated a LOT. Esp the former. Now, I wouldn't touch buy and hold here. I'd sure as hell sell out of an equity position if I had such an opportunity present itself! For rentals in '19, there are other markets out there that are less volatile, with higher cap rates, better laws, and adequate rental demand.

If it all goes down the drain again.. heck yeah I would buy again here! But I'd sell again at the next peak b/c screw rent control.

I'm from Sac! But I sure don't invest here ;)

@Kevin Luttrell Yeah I definitely wouldn't hold that property lol. All that equity is gonna go buh bye if the market finally does what it's supposed to in Cali. 

But it's a sweet flip if you think 20k will really get it to appraise at 900! I know appraisers don't love seeing a previous purchase price of 550k, then giving you a valuation of 900k with such a short window of time between the two.. but I don't know appraiser behavior in your market. And in inglewood, they'll probably work real hard to find low supporting comps (which may exist since it's a working class neighborhood).

My assumption is, if it's really only in need of 20k of work, it's probably worth a whole lot more than 550k today. I've wholesaled a lot of small multis, and I would speculate that if it's really worth 900k after that little work, I have to imagine someone would be willing to pay 700-750 for it as-is, or more if you have the right pool of buyers at your disposal. I would try to slang this thing for 800k as is and not hold it! I don't know how feasible that is.

You've got a lot of options with a 350k equity position :) 

@Christopher Davis 

I ran into a not so different situation with one of my clients, who has a high net worth, low debt, and no "income" other than capital gain from strategically selling off portions of his stock portfolio to cover his expenses. It was a hang up, but I managed to get my commercial lender to approve him contingent upon him opening an investment account with the bank (and of course, the lender collateralizing it). 

It worked out. It's a big, institutional bank and their loans are very cheap (at least when working with me). They have branches in Nashville I believe. And they'll write commercial financing on 1-4 unit too if the property meets their cash flow requirements.. so don't go bringing them a 150k sfr with 1300 rents. 

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