All Forum Posts by: Chheang Yang

 Honestly?  Take all you can and utilize it as needed. I would bank on the govt forgiving it. Then again, you may be requested to repay.  Gamble you'll need to consider. Personally, I'd take it

@Kirk R. - did you receive anything?

Hi,

My partner and I own a 2 acre property in Phoenix, AZ. It's zoned for multi, but we currently only have a single family property (home) on it. We picked it up a few years ago thinking we'd develop the land.  However, we focused on other properties in the past few years and never got to really developing this piece of land.

We are looking to possibly sell it or finally jump in and develop.  I wanted to ask if anyone would have a suggestion for a developer I could reach out to in the area who may be willing to share some thoughts.

Thanks!

The house is definitely an interesting setup.  I understand it's a cheap home to purchase, but keep in mind that it's a 2bed, 1 bath and that's a major limiting factor in the future.  Make sure you account for the cost of digging out and building that retaining wall.  I would highly suggest digging out enough space for 2 cars to park.  You're probably looking at a pretty major project.  If possible, start calling around to check on how much that's going to run.  Also, keep in mind that you may finance the purchase, but you'll have to put out cash for the parking... and refi again afterwards.

Assuming the house is fully rent-ready... I think you'll cashflow positive, but it may not be as much as you'd expect.

Your home sounds beautiful.  My first question to you is what is your goal?  Is your intent to move back into that home in a few years?  Are you looking to invest in real estate to offset monthly income?  Or are you banking on possible appreciation and cashing out later?  Your answer would dramatically impact your decision.

Like you mentioned, you're in the hole 800/month.  That's really painful to be subsizing someone's rent.  If you plan is to move back in sometime soon, maybe that's not so bad... you'll be back in your old home.  If you think the home is going to continue appreciating, maybe it's not so bad to subsize 800/month.  Just remember, that's nearly 10k / year.

If you're looking to build income... I would seriously reevaluate your situation.  Could you take your possible 500k of finance-ability and purchase a property that could at least yield you +$'s monthly.  It looks like you're okay with investing at a distance through the use of a property manager... I do believe there are markets in the US that would yield you +$'s on a monthly basis.

Sorry I can't give you a direct answer, but I'd be glad to help bounce ideas if you need a sounding board.

Heya!  Sorry to revive an old thread.  Anyone find a way to do it with Chase?  I have this set up on BofA but would like to set it up on Chase as it's closer to some of my tenants.  Thanks!

 Thanks.  I did look into it and the fees are cost prohibitive.  All good though... found a solution.  Thanks!

 Thanks for the note @Steven Gesis.  Any neighborhoods you'd suggest?  I see Pharma, Euclid and a few others that people are flocking to.  During my eval of a few of the homes that the turnkey companies were advertising, I looked up tax info and it was pretty steep.  I recall like 3k to 5k for a 60k home that'd rent for 900/month.  Are there areas that you'd suggest?  I appreciate the advice and help.  Thanks!

I really thank you for the concern.  I assure you, there's no scam on this.  The short duration is purely the nature of the deal.  I've worked with the seller in the past.  He's actually a pretty regular business contact.  He purchased the home at auction and wants it offloaded (usually same-day).  This is a rare one because by the time I told him I wanted the home, he had already offered it to someone else.  However, they backed out this AM.  I figured, here's the second chance.  If I don't give him the cash (call it deposit or whatever), he'll simply sell it to the next person.  The discount is pretty big (50k below market) which is what makes it worth the hassle.

Yeah, there's no escrow agent in this.  I would normally just wire money directly to his account.  Can a "deposit" be given directly to the seller?  I fear the answer is that an "escrow account" is necessary.  Thanks again for all the advice.

@Sunny D., one thing to take a look at are the property taxes.  I recall OH is one for huge property taxes for investors.  There are a handful of states that have property taxes where you'd spend 3-5months of annual rent just to pay taxes.