All Forum Posts by: Account Closed

My primary residence was purchased with my VA. The problem it is large single family home and we would like to go and purchase a duplex or 4-plex, investment next. I have been told we cannot do this because we have a large primary residence.

Can anyone advise the best course of action? Should we refinance our primary home into a conventional loan to free up our VA to use on the next proeprty?

Curious to learn about other investors that see the US as a playing ground for real estate.  More specific.......  

I believe, like the stock market, real estate is similar. In RE we have value buys and every city across the US is always in a different status Why not take profits from one area and push to another to achieve a profit? If you could strategize your plan of action moving forward and wanted to return the highest ROI possible then one could encapsulate different markets and buy at lows, sell at highs then take profits to put into a lower priced rental that returns passive income with not much appreciation.

SUMMARY: Buy bargain priced homes in depressed or value buy areas (high swing markets); sell when the market has hit a higher price & sell / refi. Take profit to put into lower priced homes for an infinity ROI off investment.

I have  learned by investing currently in several States in all different types of markets that each market has its ups and downs.  What if you could encapsulate off each market invested into and then move money as the particular market changes?  Also, taking strategic acquisition approach in purchasing especially in a  depressed market is like couponing at a huge sale and then adding a coupon on top of the bulk discounted price.   Discount w/another discount on top. 

I am curious to learn other markets and who else sees cyclical markets and timing as such?

@Andy N.

First congrats!  That is great and you are stepping into a large amount of doors that are already performing!

Quick question.  I just acquired 66 units (22 & 44) plex.  Do you have onsite management?  Or do you have a PM team that manages the units?  Curious anyone's thoughts on this topic and how management works for a larger plex.  Also what is the average management fee paid once over say a 12-plex?  Will you also have onsite maintenance team?

Best of luck in your new purchase!

 

Find a mentor. If you want to be great hang with great people. Learn, learn and learn as much as you can from others, books, blogs, articles and most, most important take action. Through action comes either failure or success but it is better to of tried and failed than to of never tried at all. Also with action always be persistent towards the vision and end goal. I have done just about everything in real estate and always think what if I took what I know now and went back 20 years? Wow such faster results and higher success and less failure; however the mentor will help you alleviate are some of those painful lessons along the journey. So what would I do in your situation? First the above then focus on what you want in life. Do what you love not just for the money. Real estate to me is a real life monopoly game. I get to not only provide for my family but also help people by cleaning up neighborhoods and giving back to others. I find enjoyment of no limitations of thinking as far as I can to solve problems creatively. This is the most rewarding profession in my mind. Best of luck to you and your soon new journey! Desiree'

Chris,

Welcome to BP.  Congrats on your realtor successes.  Hope to see you around AK.  What part of Arizona are you going to focus on selling houses?

Jay Hinrichs

I grew up in Oregon.  Remember Oregon fishing to this day!  Love that place!

Alb Rod

Few questions.... I ran numbers on the above scenario you presented.  

1) Mortgage note would be $345K @ 4/5%? for 30 year = 1852,00 + Insurance  (I calculate it higher than the $1580.00 number you listed?

2) 1969 4-Plex immediately flags me as what deferred maintenance does it need?  Do you have an inspection backed with contractor repairs needed?  I ask bc this will cut into your offer amount for sure especially if units need updating or a new boiler/roof??

3) Looks like rents are pretty close to where they should be.  I don't see a ton of raising rents.  Would check with a local property manager.

4)  If the property is distressed or needs some fixing is the seller willing to take down payment to hold the note and give you terms?  Maybe put less money down to save your cash towards another potential property while seller holds note.

Disclaimer.  I have not bought any 4-plex's here in Anchorage (I have run numbers on tons of them though), just single family flips and several buy and holds in several States.   Number are completely different in lower 48.

@Jay Hinrichs

Haha. I am a pro!!! Head chopped off and ready for fillet and then the freezer!    PS I grew up in Oregon and fishing is a little different up here :)

Shawn Gibson Shawn, I believe you are never too late in RE. With that being said their is always a cyclical market trend where buying opportunity is better or worse depending on what's going on in our economy. You ever hear your parents or grandparents say I almost bought that piece of land 30-40 years ago and it was......$100 or $200 an acre? You think wow that is insane bc the cost per acre today is $2000 an acre? Well RE overtime does just as the above scenario, for the most offers appreciation, tax incentives, cashflow and .pay down of mortgage. That is 4 major wins in my eyes. I used to be stationed at Andrews AFB (Washington DC) and we would travel to Norfolk a lot. Wow I thought so many military bases and housing. Well my perspective is you will have tenants for quiet a while. You have tons of military bases all around you oh yes and a beautiful thing called an ocean that people travel from all over the world to come visit. Go take an active look at your local market and get your feet wet. If you need help running purchase or rental numbers BP has calculators here online. Good luck!

Lennie Holland Stay with it and one day you will wake up and say wow look what I have accomplished. Lessons learned: 1) action, action, action. I meet so many investors that are still saying I wanna, I would like to, I need more education, etc....... After a year of knowing them. Get a plan and education and DO IT! 2) I never had a mentor until recently. Up until my recent mentor I learned by making mistakes, tons and tons and tons of mistakes! I feel a mentor would help you not make as many mistakes and push past lessons learned quicker. 3) You mentioned it but have an action plan or way forward. A direction, compass or goal to meet. I am extremely ADD and I call it the shiny penny syndrome. I see flipping and commercial, new construction and they all look awesome. I read the "One Thing", by Gary Keller recently, and he says pick one thing and do it to your best til you succeed. Get the process going efficiently and to the point where you are not required to be in the decision making on an hourly and daily basis. This is my goal now is to spend less time making maybe a little less money but then I have true quality of life because I have the best of both worlds..... Time and money----Winning Sorry rambling here. Good luck and go get your first deal!!