All Forum Posts by: Jason Malabute

Thank you Andrew this is the best advice that I have gotten so far. 

You are correct I need to meet outside the box in getting leads. 

My question is how  do you know if an upgrade adds value to a property and by how much?

Thank you,

Jason

Thank you all. Actually the rent should cover the mortgage because I am putting such a big money down. I was hung up because of the lack of CF after considering CF. If we are not considering the CF mortgage and property tax should be covered. 

I need some advise please:

So I have $200k to put down. I am pre approved for a $580k duplex, $640k triplex, or a $700k fourplex. My mom is a co-borrower (I would not get approved without her). The condition of the loan is that the property has to be owner occupied. In 2018, I will be receiving a large chunk of capital ($400-500k) that I will be investing in real estate also.

Here is the dilemma, since LA and it is a "seller market" I am having a hard time getting my offers taken seriously because it is so low. I offer way lower than asking price because that. is the only way I will cash flow with 3% vacancy, 25% repairs, 5% Capex, and 10% property management fee on top of the fixed expenses.

I am a CPA who HAS CEREBRAL PALSY AND I DO NOT DRIVE. THEREFORE, I CANNOT LOOK FOR PROPERTIES AN HOUR OUTSIDE OF LA BECAUSE I WOULDNT BE ABLE TO GET TO MY JOB THAT IS IN LA. It is also not that easy to quit your job and move when you have Cerebral Palsy.

I have to move out soon(by July or August) I dont want to waste my capital on renting. I also don't want my preapproval to expire.

I was thinking would it be a good idea if I just buy a duplex in LA that I can live in for a long time (for more than a year) even if it does not cash flow? As long I am house hacking and having the second unit pay my mortgage.

I will then use the capital that I will receive in 2018 to buy a property or properties outside of LA where it actually cash flows and has a decent ROI while still living (house hacking) in duplex that I buy in property that I buy in 2017. I could also use some equity from my first property by then.

I just want to get my foot in the door

Is this a good idea to change my strategy or should I keep offering low in LA market?

Thank you,

jm

I need some advise please:

So I have $200k to put down. I am pre approved for a $580k duplex, $640k triplex, or a $700k fourplex. My mom is a co-borrower (I would not get approved without her). The condition of the loan is that the property has to be owner occupied. In 2018, I will be receiving a large chunk of capital ($400-500k) that I will be investing in real estate also.

Here is the dilemma, since LA and it is a "seller market" I am having a hard time getting my offers taken seriously because it is so low. I offer way lower than asking price because that. is the only way I will cash flow with 3% vacancy, 25% repairs, 5% Capex, and 10% property management fee on top of the fixed expenses.

I am a CPA who HAS CEREBRAL PALSY AND I DO NOT DRIVE. THEREFORE, I CANNOT LOOK FOR PROPERTIES AN HOUR OUTSIDE OF LA BECAUSE I WOULDNT BE ABLE TO GET TO MY JOB THAT IS IN LA. It is also not that easy to quit your job and move when you have Cerebral Palsy.

I have to move out soon(by July or August) I dont want to waste my capital on renting. I also don't want my preapproval to expire.

I  was thinking would it be a good idea if I just buy a duplex in LA that I can live in for a long time (for more than a year) even if it does not cash flow? As long I am house hacking and having the second  unit pay my mortgage.

I will then use the capital that I will receive in 2018 to buy a property or properties outside of LA where it actually cash flows and has a decent ROI while still living (house hacking) in duplex that I buy in property that I buy in 2017. I could also use some equity from my first property by then.

I just want to get my foot in the door

Is this a good idea to change my strategy or should I keep offering low in LA market?

Thank you,

jm

 So what is a realistic return in this market? There has to be a reason why investors still invest here

In the Los Angeles Market am I on point in expecting a 12% COC return and $100 CF per unit? Or should my expectations be different? Thank you.

-jm

Hi All,

If a multifamily home has 1 meter for the eletric, gas, and water how much will it cost to install a second meter for each utility component? How much does "RUB" cost in the city of LA? How does it work?

Is there any kind of property/location where RUB wont be approved in LA?  What kind of licenses do I need to get a RUB update on a property? How much will it cost? Thank you.

Thank you. So how would you accurately calculate ARV then?

Hi All,

When you are calculating the ARV of a property do you use sqft of the property or the entire lot?

Additionally, how true is the following information that my agent gave me about calculating the ARV?

"Ages does not make much difference in in price unless it's 20+ years, it's all about the location and condition about the property. Usually neighborhoods are built around the same time so ages does not play a factor. Square footage and bed/bath count does play a direct factor when it comes to value. Depending on the area an extra bed/bath can add anywhere from 5- 10k thousands of dollars. A garage usually adds around 5-10k in value, I haven't seen a appraisal giving more than that. A porch and fire place helps sell a home but does not add a dollar figure value to a home. Square footage really depends on area, in the area that were looking at is about 300-500 per square foot."

Also, how much does "condition" add value to a property? How would I estimate this when calculating ARV?

Thank you,

Jason