All Forum Posts by: Jason G.
Jason G. has started 1 posts and replied 428 times.
Post: Roofstock Case Study
- Rental Property Investor
- Long Island, NY
- Posts 434
- Votes 495
Originally posted by @Alex Alexander:
@Jason G. Another question, did you go through there real estate study course so you can learn the in and the out of real estate investing?
Thank you
I have never heard of the study course you are referring to. I've only ever used Bigger Pockets and whatever free research I've done using Google.
Post: Roofstock Case Study
- Rental Property Investor
- Long Island, NY
- Posts 434
- Votes 495
Originally posted by @Alex Alexander:
@Jason G. Hello Jason, just to make sure when bough the property from roofstock, can you optain another loan against the property you bought already so you can buy another one?
Thank you
I am not sure I understand your question. If you purchased the investment with 20% down then you wouldn't have enough equity to take out a line of credit on it or cash out refinance.
Post: Roofstock Case Study
- Rental Property Investor
- Long Island, NY
- Posts 434
- Votes 495
Originally posted by @Derek York:
Thanks, I will look into that! Have you heard anything about Axos bank? they seem to have a good discount through roofstock
Sorry I missed this. I have never heard of Axos Bank.
Post: Roofstock Case Study
- Rental Property Investor
- Long Island, NY
- Posts 434
- Votes 495
Originally posted by @Derek York:
@Jason G. love the thread. I had a questions about lenders. I'm looking to purchase my fist property. Any specific lenders you would recommend?
I liked Better. The last time I used them BP had a discount so make sure to check to see that is still available if you decide to go with them.
Post: Coming up with down payment money at the beginning
- Rental Property Investor
- Long Island, NY
- Posts 434
- Votes 495
Originally posted by @Brendan VanDalinda:
I’m pretty new and am struggling figuring out good ways to come up with the money for a down payment! Any ideas?
Being pretty new I would recommend recognizing that there is absolutely no rush. Spend time learning about real estate investing by reading books, browsing forums, and watching webinars. Real estate investing is not a get rich quick scheme, but rather an established path to gain wealth over a long period of time. You mentioned you already own a home and are house hacking. What do you mean by house hacking in this context? Is it a duplex with a unit rented out, is it being fully rented out while you live elsewhere, are you renting rooms? If you are intent on purchasing a property now using a partner or a mortgage program that allows a low down payment, will the properties in your area cash flow? Will you be able to afford to cover the PITI and other expenses if the unit is vacant? Will a partnership dilute the individual profits to the point where the investment wouldn't be worth pursuing? Conventional lenders will typically require 20-25% down and six months reserves. Sometimes it is just a matter of saving the down payment over time and then investing, saving again plus using the profit from the investment to buy the next, and keep going.
Post: Condotel in Maui - first investment property
- Rental Property Investor
- Long Island, NY
- Posts 434
- Votes 495
Originally posted by @Jennifer Phillips:
Also, just to wrap it all up, @Jason G., the $1300/mth was not including management fees. It was only maintenance. They later disclosed all financials, and more charges surfaced. We have bought many a primary residence, but not rental properties, per se. Is it typical to get all financial/fee disclosure AFTER earnest money is put down (our realtor says it is in Hawaii)? Because that could change SO much, including the offer price that you ALREADY locked down! Also, it seems pretty daunting to be promised you will get your earnest money back if financial data makes you change your mind. It's in the contract, but still, cutting that check hurts, and feels too risky. All fees and expenses should come first, before the offer and earnest money. Don't you think so? Again, we're told that Hawaii operates differently than other states due to the classification of properties (condotel, etc.), so this may not apply to, say, Indiana. I should start a new thread on this topic.... :) Thanks again!
I do not know how Hawaii operates, but personally, I wouldn't pull the trigger on any property unless I had all the numbers. At one point my wife and I were looking at condotels in Miami and between the profit sharing and the fees, which were separate, we just couldn't bring ourselves to do it at the time. For the numbers to really work, I would have to do a full cash buy and that money could probably be put to better use elsewhere.
Post: Condotel in Maui - first investment property
- Rental Property Investor
- Long Island, NY
- Posts 434
- Votes 495
Originally posted by @Jennifer Phillips:
Hi all - first post here, and I'm hoping for some honest feedback on an investment/personal use property at a condotel resort in Maui. Cut me some slack, as I'm just now learning some of the investment terms used on this site. We intend to use the property probably about 6 weeks of the year, during slow season. Annual occupancy without our use is about 77%. First, the loan will be 35% down, which apparently is typical for Maui condotels. Since we intend to use the condo long-term, we are looking at this as an investment in equity - money we would have had in the stock market otherwise. The resort does EVERYTHING for me - booking, cleaning, paying utilities, etc. - for $1300/mth. I am paying closing costs in cash, as my loan to value is maxed out at 65%, so that's another $10k out of pocket. I ran the BP analysis/report, and it's telling me my NOI is $21k, and cash-on-cash ROI is 1.86%. Gross rent multiplier is 5.8, and income-expense ratio (2% rule) is 1.40%. I'm seeing annualized total return at 7% year 1, 10% year 2, 11% year 3, and then it drops back down to 10%, 9%, 8%, etc. Cash flow is positive, but not hugely, and honestly we'll probably spend that vacationing there. Keeping in mind - we intend to use the place ourselves, and hope to make a little profit in the meantime. Does any of this scream "RUN AWAY" to anyone?
When you say the hotel does everything for $1,300 a month, are those all the fees aside from PITI in total or are there additional fees? What is the profit sharing split between the hotel and you? Have you asked for copies of the last year or two years of statements for the unit to see if it was profitable? When you say this is an investment in equity, are these units appreciating in value? Given Covid, how is the condotel doing itself? Are there a lot of units for sale? Are those that are sale selling below their original purchase price? That may be a sign of an issue.
Post: Roofstock Case Study
- Rental Property Investor
- Long Island, NY
- Posts 434
- Votes 495
Originally posted by @Anthony Vargas:
Wow -- again, many thanks for keeping up with this thread. It has provided a wealth of information for me as a potential investor with Roofstock.
I am actually a little surprised that you were able to secure traditional financing on the sub-$100K property. Do Roofstock's financial partners provide this type of financing? I was always of the mind that sub-$100K properties were typically difficult to secure traditional financing for.
I had once asked Better what the lowest mortgage they would handle and I believe they said 50k. But you would have to confirm with them. Only one property was sub 100k and that was with a lender that no longer exists, but i had absolutely no difficulty obtaining financing for it.
Post: Roofstock Case Study
- Rental Property Investor
- Long Island, NY
- Posts 434
- Votes 495
Originally posted by @Nick Grasela:
Hi Jason, How has it been going since you last updated especially now with the new eviction guidelines and being out of state from these properties? This thread has peaked my interest alot so I thank you for providing all of the income numbers for your properties!
Sorry, I don't know why I missed this question. The eviction restrictions have impacted me to date.
Post: How do I make sense of a Home Equity loan?
- Rental Property Investor
- Long Island, NY
- Posts 434
- Votes 495
Originally posted by @Pathik P.:
@Jason G. Makes complete sense! And I'd go about it the same way. We're also BRRRRing.
Buy our first property with money set aside for downpayment
Rehab from money set aside
Rent to tenant based on fixed up property
Refinance --> This is where we could either cash out refi or HELOC on equity (75% of LTV) to recapture costs and
Repeat --> keep growing. On third property, do cash out refi or HELOC again to quickly pay down first HELOC
2 questions:
1) Is that a viable strategy?
2) The 100k HELOC you fully took out, how did you go about paying that down? Rental income?
1. BRRRR is a viable strategy for many, but it depends on the investor's individual circumstances. A HELOC is for a primary residence. A LOC is for a rental property. You will likely run into difficulty obtaining a conventional mortgage with an LLC and interest rates, down payment percentages, and refinance retention percentages will likely be less favorable with non conventional loans.
2. A portion of the rental income covered the monthly interest payments. I used money from my day job to pay it down. It is about halfway paid off at the moment.