All Forum Posts by: Jay Yoo

@Daniel Kim great point. Multifamily around my town are $2-3mil. Not profitable right off the bat

Hi All.

Ive read Rental Property book from BP twice. After reading the book for the first time, I was thinking to get heloc and invest single a family home long distance and apply BRRRR strategy to start my journey but there are a greater risk to face such as finding right contractors and property managements from long distance. Im in Seattle and there are no property I can plan my strategy in this market.

However after reading the book for second time and listening many BP podcasts, multifamily investment is a way to go instead of single family homes.

Apology if I use too much words here and there may be some REI terms but

What if I sell my primary home and buy multifamily units to move in with myself and my family, and rent the rest units?

Then I will be able to get a conventional mortgage with lower rate since it’s not investment.

Currently I have $450k mortgage and equity for the home is about $250k.

With $250k, I should be able to put downpayment for multifamily units in a high priced like Seattle and move in there.

This way I may be able to get the all benefits as primary residence and mortgage and rent it to cover the monthly payment.

So how do I come up with math that I need to set the pricing range for a multifamily units?

BRRRR is basically stating that I need to buy a property 80% of the listing pricing. There are literally no property you can buy lower than listed price in Seattle period. I would be grateful if someone gives me insights so I can take an action. Thank you.

@Jan KerrThank you for the advice. Glad to join BP community!

@Jan Kerr no it was not my idea but I trusted my agent. Inspection was waived after hearing from seller’s agent that other offers came with inspection being waived.

EMD was $10k so cant back out. Still have 2% annual cash on cash ROI with buy down points but additional closing cost, $4000 to buy points to get 5.1% interest on conventional mortgage as investment rates tend to be higher. My credit score is over 800.

Hi. I'm a newbie to REI so bare with me if I'm not explaining well enough.

My agent and I offered higher to win the multiple offer and hope for a lower appraisal than offered pricing.

Guess what, the appraised value was matched to my offered pricing.

Now I’ve asked the seller to extend the closing date and they accepted 7 more days for us to have the lender’s underwriter to review the appraised value.

The underwriter comes back said “not enough leverage to lower the appraised value”.

The lender will now ask one another underwriter thirdparty to have them take a look.

The background for this property is

It’s a condominium near a very high population area. The same unit with a lot renovated was sold for the listing price three months ago.

We offered 10% more to beat other multiple offers.

We have 10 days left until closing. Any other tactics you may have suggestions? Thanks!