All Forum Posts by: Gordon Cuffe

Mortgage rates have gone up the last 12 months. they will probably continue to go up throughout 2018. 

@Cody Persellit sounds like you accomplished great things. Most of the posts here on Bp say to avoid buying the hood homes. I am curious as to how many homes out of a hundred go vacant or get 2 week late payers . I have suffered through terrible tenants in A type properties so I thought that I might as well get the cheaper properties to maximize returns 

@Nguyen Quachyes you are correct. You might try cash for keys instead of eviction. That is where you offer the person cash if they move out at some date you guys choose. That can be faster and the same price as eviction. 

@Nguyen Quachway to go. You don’t really need to get title insurance if think your going to sell right away. You will use a title company when you sell so the buyer will get title insurance.  I was just at a lunch meeting where one of lenders will do a cash out refinance based on new appraised value even if the person has owened it for less than a year . 

@Andrew LuongI sent you a pm about this

@Animesh DasYour allready invested in real estate in 2018. The question is do you just keep what you have and watch your loan balance go down over the years or do you try to speed up the equity creation process by investing somewhere else in real estate. It seems crazy to sell, pay taxes then invest in mutual funds considering the dow dropped 666 points on friday. We have seen a 9 year run up on the stock market. How much longer do you think that stocks can run up from here?  Could you deal with investing in stocks this year and watch your portfolio drop 10% to 15% next year. If you can stomach that drop then invest in mutual funds. You can do a 1031 exchange so that you dont pay taxes then invest the proceeds in another market. Sacramento has cap rates a little better than the bay area but our values are on the 6th year of price appreciation so it will stop or slow down as mortgage rates go up. If you want much better cash flow then you should consider buying a multifamily in a mid west city like ST Louis or Kansas City. Kansas City has seen price appreciation since 2014 plus better cap rates than CA. If you want to determine if Alameda county values have peaked and are expected to drop ,you should look up and follow a real estate investor named Bruce Norris of the Norris Group. Not related to Chuck. He has predicated CA market drops since 1989. He looks at data from the Southern Ca, Northern CA and bay area to see when there might be the next drop in values.  

@David Zhengcongrats on the car. How much positive cash flow does she give you every month?  lol

I remember you story about the apartment and it gave me motivation to tell myself I can do the same thing or something simalar. keep looking for the deals. 

@Keith MeyerThat is a low cap rate for Kansas City. I just located a 4plex for an investor for 155k. 2 units only have 1br each so the monthly rents are going to be 2100 per month. It is about a mile or so from the Chiefs and Royals stadiums. Maybe I should raise the price of that 4plex if some realtor thinks they will get 350k for his listing. Look for off market deals or pocket listings from realtors. 

@Alain Chautardyou can deduct expenses, mortgage interest, travel to the property when you own a rental property in your individual name. It does not have to be in the name of a LLC. It would be deducted on your schedule E on your taxes. Talk to a tax person and you can find out exactly what you can deduct when owning a rental property. If you ever need to talk about what the current prices are around the sacramento area, you can shoot me a email. It is now tough to get positive cashflow around sacramento because of the high prices but at least rents went up at the highest rate in sacramento compared to the rest of the nation. AirBnb will get more in rents but probably more work involved.

@Alain Chautardwelcome to Buggerpockets . It is a great place to network and learn . It is very tough for a llc that has zero income to get a loan. Why do tou think you need a llc?  If you have located a property , it is easier to make a down payment and take out a home loan to purchase the property. You can take out liability insurance to protect yourself .