All Forum Posts by: Greg C.

I'm currently putting together a package to give the appraiser on a home valuation.

The Home was a foreclosure that was basicly ripped clean when the former owners left and we put a significant amount of money, work and sweat equity into it.  I was planning on including:

1) List of Work complete and costs.

2) Before Pictures ... Are after pictures necessary as they will basicly be looking at the after?

I'm sure they will want their own comps. Would anything else be helpful?  

So as I listen and read... there is an overwhelming message to be heard...

"Take Action!"

I find myself doing a lot of research on the whats wheres and hows.  I read pretty much every new post on this forum.  I've listened to most the Podcasts on BP at least once at this point. I search loop net and Auction and Zillow and I find properties and analyze them just to do it. And as I find interesting properties I research the economy of the location

But it occurs to me there are actions I still need to be taking to "mind my own business..." The where and the how don't matter much if my personal financials are not ready.  So I shifted focus.  

My primary goal over the next few weeks will be to 

Get my primary refied (good thing I locked in yesterday as rates are on the rise)  

Get My Heloc Locked in at 80% LTV

Create a budget my family can live with to start saving more aggressively.

So I'm taking Action.  And I'm taking Action today.

Yeah She was pitching it as an option.

Or I should say at least I found it interesting to be able to put down less on a larger loan. 

@Jeff B. True it was in a discussion about Moving to a new Primary and renting out current primary.  Just thought it might be of interest to others in the CA market faced with 20% on a Los Angeles size loan.

Just got off the phone with a lender at Provident Bank CA and she was telling me about a current Loan they are running.

Jumbo at 5% down.  

Thought some might find that interesting.

 @Ben Leybovich blog about owning a primary 

grant-cardone-primary-residence

prompted me to run some imaginary primary numbers as if buying market value with an FHA 3.5 percent down and look at it with investment eyes...

If one assumes you are in your primary for 30 years to pay off the mortgage. Sorry if my number are off I did them quickly. 

$410,000 loan with 4.5 % interest amortized over 30 years costs w/closing costs wrapped into loan.

$747,868

Purchase Price -

$425,000

10 percent maintenance and cap x over 30 (modest at best I think)

$42,500

utilities over 30 -

$90,000

taxes over 30 -

$165,000

landscaping over 30 -

$36,000

6 percent to sell -

$44,872

total cost over 30 years

$1,126,240

Value of the home with 3% appreciation over 30 years

$1,031,586

(-$94,654)

To be fair, I didn't account for inflation of costs / increases in property taxes or tax benefits of interest.  

I'll be interested to see where he goes with part 2 of the blog.  My assumption is it will either be don't buy primary until passive income can pay the cost or find the sweet spot where you can leverage your equity to offset the costs of ownership.

Because I live in LA and my interests at the moment seems to be Buy and Hold Multi.  I'm actively reviewing out of state options.  Vegas is the next and closest logical location for me as I spend plenty of time there with Family. It only costs about $99 dollars to travel there and I have a place to stay I need to go on Business.

Here's an interesting article I found on Las Vegas Multi-families.  It also does a nice job illustrating how adding value and adjusting expenditures can increase equity.

Las Vegas Multi Units

Noting here Vegas does scare me a little.  I'm sure investors there will argue but it seems like there is so much new building combined with war zones/ crime and an industry reliant on good overall National economy.  Should things go south then...

to quote an off topic source but stuck with me this morning...

- The Walking Dead