All Forum Posts by: George Maka

@Account Closed I came across your comment and saw your last name. You poly? I am also in the Irvine, CA area and fairly new to real estate investing. I go to a few investor club meetings and started my direct and online marketing for sellers. Send me a message and perhaps we could meet sometime for some coffee, if you are in the Irvine area.

George

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@Matthew Parent How much equity is in the house? Is this a motivated seller and they need to sell? If the house is owned out right, you could do seller financing, and buy it at his price, but on your terms, which would mean the house would have to cash flow.

If it's a motivated seller, and they want out, perhaps you can do a subject-to and take over. We need a little more information on the property to give you options.

@ April Adams - thank you for the reply and glad to see someone else in a similar situation as myself trying to make it work. Are you also investing in the California area?

Would this make sense and should I do this? I am a long way from having a down payment, but I have great credit and have a large amount of credit available. I am still new to REI and my strategy is to buy and hold.

Would it make sense to use a line of credit to put down as a down payment on a house to avoid PMI and finance the rest through a conventional loan? I'm thinking, if I put down 20% deposit, I would then have at least 20% equity on the house, where I would take out the equity and payoff the line of credit. From there, I would just payoff of the mortgage and rent it out. If the mortgage payments make sense, should I finance this way?

As a new investor, I am trying to learn as much as I can and trying to catch up on the lingo for real estate investing. As I go through the beginner guide on this site, I came across the "rule of thumb" and I cannot understand how this applies to Orange County, CA because the prices seem high. I plan to buy and rent for my strategy. Some examples I don't understand are;

2% rule - Rent is my area for a 2bdrm, 2 bathroom condo/house is about $2,000. Applying this rule, I would need to find something for $100,000? I don't even know if that is possible.

50% rule - If I take the above rent, and apply 50% of that to the expenses, that leaves $1000 for the mortgage. Only way I imagine this to cash flow would be to own the property out right or have a very small mortgage.

70% rule - this is understandable.

I know these are just a rule of thumb to screen properties, but do investors in Orange County, CA find these applicable or do you guys have to adjust these rules?

Thank you,

George

First post, but long time reader on the forums. I am in Orange County, CA and I am just starting out in real estate investing. I am interested in a strategy of buy, hold and rent to create a cash flow stream, but I am unsure of where to start. I have good credit (above 700), but I am limited on funds. I have a job, and make about 60k a year.

Is it possible to buy and rent for someone in my situation or should I go for another strategy and build my way up to this? If it is possible, any suggestions on the type of financing I should be looking into?

thank you,

George