All Forum Posts by: Garmeon Y.

Hello all,

I'd appreciate any helpful input from the BP community. I've been told by my family that a rental analysis should calculate income with current rent, versus market rent, if there are tenants currently living on the property listed for sale. The logic being it'll be difficult to raise rents or get them to move out.

Also, I feel unsure whether I've accurately captured all the property's expenses. I have reached out to local property management companies in order to give me a better picture. However, I get a sense that the seller-provided information is incomplete -- most notably whether there are any rehab costs necessary.

Finally, as I'm still waiting on my lender's reply on what I qualify for, I used the 3.875% rate I previously qualified for with respect to a SFR purchase. I am trying to get a FHA loan and put 3.5% down. Still feel uncertain whether FHA offers would be competitive in my market. I have enough for a 20% down payment, just not sure how much I should put down.

I'd appreciate any suggestions for my analysis, as well as what you think the best financing strategy would be. I understand that this deal is far from the ideal $100+/unit cash flow, but I was told in another one of my posts that we're banking on appreciation in my market.

See link below for analysis performed:

San Jose four-plex property

@Paul Sofia The Prez is the king of Twitter.

@Christian Street Definitely. Trump doesn't want Obama to get one by him. The President thinks the former President gave him a difficult transition.

@Mike Reynolds Not familiar with those places, but I keep hearing how Texas is such a great place to invest. I have a couple friends down there. I get the impression y'all Texans don't appreciate us Californians migrating there in droves.

@Mike Reynolds Sounds dreamy and morbid at the same time. Die with or die in the house?

My understanding is you don't have to permanently live in a home that's FHA financed.

And yes, the rate cuts never went into effect.

@Mike Reynolds why not FHA? Isn't that where the magic happens?

Today was President Trump's inauguration. The administration wasted no time and has halted one of Obama's last minute legislations to cute PMI rates. Correct me if I'm wrong, but I thought Trump is pro-real estate? Isn't this hurtful towards (prospective) real estate investors?

http://money.cnn.com/2017/01/20/real_estate/trump-...

My family has a "vacation home" in Napa near Lake Berryessa since 2000. The value never really recovered from 2007. Has been vacant a majority of the time and since the kids (including me) grew up, we never really went there for vacation anymore. Condition "needs TLC" and fixer-upper is an understatement. For those that don't know the market, a majority of the properties in the area are absentee owners like us or retired couples. Thus, the turnover rate of homes isn't the hottest. The property is basically a money pit, required to pay utilities (water, etc.) even with no usage. 

@Andrew Johnson Definitely late to the SF game. My mom kicks my dad's butt all the time about buying the above property instead of a second SF house back in 2000.

Any advice on exit strategies?

 Thanks for the reply. I AM scratching my head. I thought I was being too conservative in my underwriting or just inexperienced in making a five-minute analyses, but now I know I'm not crazy. 

I don't doubt my market's potential to appreciate, just along the lines of what I've been reading/listening to I'm not banking on appreciation. My family give me most of my mentorship and I was told to just get my foot in the door. San Jose appears to be an area that still has much room for improvement.

Hello all,

My name is Garmeon and I'm new to BP and real estate and I've been reading all the articles and listening to the podcasts during my commute. San Francisco native here looking to purchase my first property (multi-family) in the San Jose metropolitan area within the year. Just wanted to start off my first post with several introductory questions:

1) Turning 30 in 2 weeks -- am I late to the game?

2) I'd like to make the Bay Area my target market, but the barrier to entry is quite high. I know it's not necessary to invest in properties that are driving distance; however, my question is assuming positive cash flow is it worth competing for properties with such a high cost per square foot?

3) Assuming enough capital to to put 20-25% down, would it be a better allocation of capital to do FHA or conventional loan (keeping in mind homes are at least around $600-800k, easily more).

4) If you're looking at a rental property and can only drive by, what are some things to look for?

Any beginner tips, advice, or recommendations would be greatly appreciate. Looking forward to being a part of the BP community!