All Forum Posts by: Jason Sung
Jason Sung has started 28 posts and replied 91 times.
Post: Mis-representation of a single family property
- Investor
- Dallas, TX
- Posts 91
- Votes 30
HI, I am under contract for a single family property. I put an offer while I was out of town and my offer is selected. In option period, I got inspection report (still I was out of town) and decided to move forward. After the option period (or inspection period), I finally came back home and had a chance to visit the property with my contractor. Then I realized that the house is 2 bed/1 bath, instead of 3 bed/2 bath as listed in MLS. The contractor says it will be way over my budget to change the house to 3bed/2bath. In this situation, is it possible to back off from the contract with my EMD? What options do I have in this situation? Thanks!
Post: Options for investors when a flip doesn't sale
- Investor
- Dallas, TX
- Posts 91
- Votes 30
Quote from @Scott Trench:
The exit options for a project generally involve the following:
- Selling it (Flip)
- Refinancing it and keeping it as a long-term rental (BRRRR)
- Refinancing it and keeping it as a short-term rental (BRRRRBnB)
There are lots of permutations of this - you can do mid-term rentals, rent it out by the bedroom, etc.
@Scott Trench great. What do you mean by mid term rental?
Post: Residential property on commercial zone (C1)
- Investor
- Dallas, TX
- Posts 91
- Votes 30
Hi, I am under contract to buy a property that is 5 min north of Weatherford downtown. It is a single family home but zoned as commercial (Code C1). The seller said that it is dual zoned (I am not sure if it is possible for a property/land to be dual zoned) but the city's website shows it is C1.
There is a tenant living in the property but will move out before closing. I originally planed to rehab and rent out for a residential tenant. My question is, is it possible to use this property as residential rental after I purchase it? If it could cause any issue, I would not close it. Would appreciate any advice!
Quote from @Jonna Weber:
This is one area where everyone is going to have a differing opinion and risk tolerance. Another variance once you have a handful of properties: you can have multiple LLC's set up to hold property in (with very little check writing and activity), but then have a management LLC set up that that you run most expenses through. This cuts down dramatically on bookkeeping upkeep. Idaho is simple an inexpensive for setting up and maintaining LLCs though. ($100 filing fee and no annual fees after that).
@Jonna Weber I wonder what you mean by 'management LLC'? I am about to form an LLC for my rental property and wanted clarify if there are specific LLC types I should consider.
Post: BRRRR: Renting out before refinancing needed?
- Investor
- Dallas, TX
- Posts 91
- Votes 30
I am about to try my first BRRRR. One question about this strategy is, do you need to rent out before cash out refi? Or, it is OK to do cash out refi first, then rent it out. I think I read somewhere that the latter is more desirable. I would appreciate any advice from experienced investors. Thanks.
Post: Rehabbing in Fort Worth
- Investor
- Dallas, TX
- Posts 91
- Votes 30
Quote from @Joe Funari:
@Jason Sung
Quote from @Jason Sung
Thanks @Joe Funari!
Post: Selling Our Home With Lots of Equity to Invest in Cash Flowing
- Investor
- Dallas, TX
- Posts 91
- Votes 30
Quote from @Steven Hayes:
Hello BP Group,
My wife and I are thinking we are going to put our home up for sale soon. We will have nearly 1 million in equity left over to invest. Our goal is to not have to work full time at our 9 to 5's. Looking for recommendations on how to generate the most amount of cash flow with this amount of cash we should have available. We have some SFH now, but looking at purchasing a large apartment complex. Seems like the route to go. Any input would be great.
Hi @Steven Hayes have you thought about investing in self storage units? I think it can be another option for cash flow. I am new to self storage investment as well and learning daily.
Post: First self storage unit facility investment - Good deal or not?
- Investor
- Dallas, TX
- Posts 91
- Votes 30
Quote from @Ronald Rohde:
I think it sounds like an ok first deal. Especially if you're able to be present during the day. You'll learn a ton.
Whats the current occupancy? If your market research (check sparefoot) says rents can go up, you'll make money from increasing rents and occupancy.
I'd push on the price, are you getting debt or not?
@Ronald Rohde Thanks for your comment. I am considering SBA loan with 15% down. Current occupancy is below 50% but the NOI for the cap rate calculation is from last year.
Post: First self storage unit facility investment - Good deal or not?
- Investor
- Dallas, TX
- Posts 91
- Votes 30
Quote from @Jon Kelly:
@Jason Sung why did you start looking if you don't know what a good deal is? Run it through a REI calculator and see if it meets your minimum criteria.
30 units is small for self storage. There's not enough activity for you to work there full time. How much of the $37k NOI are you going to pay yourself? Is that enough to make it your full time job?
$37k NOI and 6.5% cap seems like a good option and it gets you in the game.
@Jon Kelly Thanks for the comment. I work in IT and work remotely. What I meant was to keep working IT remotely (at self storage office), while running the storage unit by myself since the number of unit is small.
Post: Taylor investing
- Investor
- Dallas, TX
- Posts 91
- Votes 30
@David Sray this is old post but wondering if you ended up buying properties in Taylor. With the announcement that Samsung will open a factory in Taylor, I wonder if it makes sense to invest now before the factory opens in 5~6 years?