All Forum Posts by: Dani Beit-Or

How would you structure this deal:

SFH in Belton MO (outside of KC)

Asking: $270k

Our offer is: $255k

Seller has a current mortgage balance of $143k, int. rate ~3.1% and a monthly P&I of $665.
If we do a straight forward sub-2 then we need ~$112k. But I want to bring less and looking to do 10% (~25k down).

So there is a gap of (255k-143k-25k=) $87k.

What are my options?

My thoughts are for the seller to do a 2nd for the $87k BUT the concern here that a 2nd may increase the chance of triggering the 1st lender.

Looking for idea

Thanks

Hi Jaqsin, 

Fellow CA here, living in OC, and I see a lot of people from CA looking for out-of-state opportunities because, as we all know, CA is not the best when it comes to ROI & cash flow.

May I ask why you are looking at Houston? Texas was at one point a market I was advising clients to invest in, but as the numbers started to weaken, I've directed them to other markets in GA, KS, FL, TN and AL.

Happy to connect.

Good Day!

Fellow CA resident here, living in Orange County, happy to connect. As we both know, the housing market in California is not a viable option for investors. I purchased my first rental in Arizona, sight unseen, 20 years ago and haven't stopped buying. Not just for me, but clients all over the world.

This was asked not too long ago, but my answer is still the same.

What I look for when investing:
Strong population growth, strong schools, affordability, landlord-friendly laws, and often, favorable weather for year-round renting. To me, those factors =  long-term potential and cash flow opportunities

Based on the above, for my clients, I focus on several markets, including Nashville, Kansas City, St. Louis, Birmingham... Mid-Term Rentals are also a great option for areas like Atlanta. 

I'm currently working with Florida developers in Ocala, Cape Coral & North Point as well. Since I have several clients purchasing, I've negotiated better terms to make them an even better investment deal.

Feel free to ask questions.

Good Day!

Fellow CA resident here, living in Orange County, happy to connect. As we both know, the housing market in California is not a viable option for investors. I purchased my first rental in Arizona, sight unseen, 20 years ago and haven't stopped buying. Not just for me, but clients all over the world. 

This was asked not too long ago, but my answer is still the same.

What I look for when investing:
Strong population growth, strong schools, affordability, landlord-friendly laws, and often, favorable weather for year-round renting.

Based on the above, for my clients, I focus on several markets, including Nashville, Kansas City, St. Louis, Birmingham... Mid-Term Rentals are also a great option for areas like Atlanta.

I'm currently working with Florida developers in Ocala, Cape Coral & North Point as well. Since I have several clients purchasing, I've negotiated better terms to make them an even better investment deal. 

Feel free to ask questions. 

Fellow OC resident here, happy to connect. 
As you know, the housing market in OC is not a viable option for investors.

What I look for when investing:
Strong population growth, strong schools, affordability, landlord-friendly laws, and often, favorable weather for year-round renting. 

Based on the above, for my clients, I focus on several markets, including Nashville, Kansas City, St. Louis, Birmingham...

I'm currently working with Florida developers in Ocala, Cape Coral & North Point as well. 

I'm developing a new investment partnership model with an investor, and I’d like your help refining and making sure I'm not missing anything.

Here’s the idea:

I’ll bring the deal—locate it, vet it, negotiated—typically a single-family rental with either a subject-to or VA loan assumption structure.

The investor brings the cash needed to close.

I may or may not use property management; I might self-manage.

Example: $300K house with $200K mortgage → investor brings $100K cash, I bring the deal and mortgage.

Key questions I'm working through:

1. Who holds the mortgage risk? or do we share the risk?
2. How do we structure equity—cash vs. mortgage in terms of partnership in your opinion? is it 1/3 - 2/3? does that change if we refi?

I'm looking fir idea on how to split the equity/profit in such setting - how would you do it? 

Thank You!

As investors, we sometimes get super focused on just one thing when we're trying to decide if a property is a good deal. Like, maybe we get really hung up on the price. But the truth is, buying an investment property is like balancing a whole bunch of different things, maybe even 8 to 20 big things!

Think of it like this: when we look at a place, we're checking out a bunch of "pillars" that hold up our decision. Things like the price, how old the house is, how big it is, where it's located, how much rent we can get, how many bedrooms and bathrooms it has, the garage size, the lot size, how good the place looks overall, the cash flow (how much money we'll make), the schools nearby, if it's in a good community or near public transport, and maybe a few other things.

Some of these pillars are easy to get, like knowing how many bedrooms there are. Some we can guess pretty well, like insurance and property taxes. And some we really have to dig into, like figuring out the rent and the cash flow.

Now, let's say you did your homework, looked at all these pillars, and decided a certain property was the one. But then, 3 months later, you own it, and you are actually renting it out for $300 less than you thought, and your cash flow takes a hit. Did you make a terrible mistake? Was it a bad investment?

I don't think so, not if all those other pillars are still strong. Think of your decision to buy as a platform sitting on those 20 pillars (all those different things you considered). If maybe three of those pillars didn't turn out exactly as you expected, is the whole platform going to collapse? Probably not, because it's still standing on 17 other solid pillars that you checked out and that are still holding things up.

@Chaim Mal 

Okay, so about three months ago, I purchased a property in the Phoenix area for $360k. The market value seemed to be around $450k, so right off the bat, I had about $90k in equity – a pretty good deal, right? The appraisal for the mortgage even came in higher at $470k, so no complaints there!

Right now, the rent basically covers all the expenses, so for the next couple of years, I'm pretty much breaking even each month.

Now, here's my thing about cash flow. I definitely like it – it feels like a safety net when you're investing. But let's be real, sometimes the monthly cash flow is peanuts compared to how much the property can go up in value, the equity you build as the rent pays down the mortgage, and the tax breaks and depreciation. If you only focus on cash flow, you could miss out on some bigger gains.

Back to my Phoenix place. I'm figuring that over time, the rent is gonna creep up. I'm hoping to get to maybe $100, then $200 in positive cash flow, and even more in a few years. Plus, I'm keeping an eye on interest rates and hoping to refinance in the next one to three years and maybe drop my rate by a percent (hopefully more). That would totally change the cash flow picture down the road.

For me, it's about seeing the whole picture and having a plan, not just fixating on the cash flow right now without thinking about the future.

https://simplydoit.net/etn/seize-the-moment-insiders-share-their-hard-earn-experince-to-real-estate-investing/

You don’t need to live near your investments, you need to understand the market, trust your team, and know your numbers. Living in CA, I’m always looking for out-of-state deals

Involved in 5000+ home sales in over 40 markets and when finding properties for my clients, it's all about "Investor-Friendly Markets"

Price-to-rent ratios are favorable (closer to or above the 1% rule)
Strong population & job growth
Landlord friendly
Affordable Property Management

Kansas City, Birmingham, Nashville, St. Louis all meet my criteria. 

I am also working on a deal in Tampa and Ocala, where I’m working directly with the builder for pre-negotiated discounts for my clients.

Happy to discuss further. But those are the markets I would start with.