All Forum Posts by: Jeff Zimmerman

@Rahul Handa i hope your move goes well.  Fresno market, which is 3 hours away from sac, is a more affordable market to invest in.  if you'd like to chat about the area to get your research started just message me. 

@Christine Cogan-Mesa congrats on getting started!  yes, i highly recommend a reputable management company, even if you want to manage yourself one day to save the management fee, the best way to learn how is to work alongside them and learn from their experience.  if you need names of some good companies i'm happy to provide if you message me.  Good luck!!

@Tom Makinen fresno's job growth has been solid, and my unit rents have gone up over $100/door in the last 15 months with no improvements.  Fresno has been good to me.  always happy to chat more if you want to message me.

@Cristian Garibay  sorry for the late reply.  as far as qualities in an MFH, it's always good to know first and foremost what the rents in each unit are at to make sure it will put some money in your pocket each month after you pay expenses, especially with one unit "un-leased" since you will be living in that unit.  second, i like to look around at what other units are renting for in the same area, if they are higher that means you have room to move yours up too (which sometimes means improving the units, but this is based on the comps in the neighborhood), if yours are the same as everyone else then you will know that they are stable and can move up every year 1-3% due to inflation, costs of living, etc...  If yours are higher than everyone else that means you have the best place on the block, which is good for a lot of reasons but could also mean it's hard to replace a current tenant at the same rent when you do a turnover, as there is a chance that most people in the neighborhood can afford your rents.  

a conventional, residential loan is the best way to go to win a deal as sellers prefer them, they come with fewer stipulations for the seller. an FHA loan is better for you because it usually comes with a lower interest rate and less money down, it may be smart to be pre-qualified for both and then you can decide which to use when making an offer. I hope that helps, feel free to message me if you want to continue the conversation.

Hey @Cristian Garibay , congrats on getting started. The answer to your questions are like most RE questions, "it depends". in Fresno I typically steer people away from townhomes for investments, the reason is that most renters and future buyers (when you choose to sell) prefer an SFH rather than a townhome and since you have more demand to rent/buy SFH's you will do better financially. Plus, you want to stay away from HOA's if you can help it, they are usually pretty expensive and can cause problems for you as an investor. additionally a 3bd sfh in a decent area of town will give you more rent since there are 2 other bedrooms to rent out.

another idea you could try is buying an MFH with a residential loan (just like a home loan) and living in one and charging rent in the others, that's a really good way to get started.  I hope this helps.

are you in fresno or somewhere else in the CV?

What's up Dandre, congrats on getting started.  Sounds like you have some good opportunities.  Sounds like you have a chance at making some nice passive income with your partner since you have something he needs and he has something you need.  

The difference in buying a property vs wholesaling is that owning is passive, which is the goal of most RE investors, we want to make money while sleeping and on vacation.  Wholesaling is a faster return but it's VERY active, in my mind, wholesaling is a great side hustle to make money so you can convert profits made into passive RE holdings.   Additionally, I understand wholesaling but I've never understood why wholesaling as an active job is better than becoming an RE agent, perhaps I've never looked into it enough.  All that to say, you may want to look into becoming an agent if you are considering wholesaling as they are very similar.  

I'm more than happy to talk more if you'd like to talk Fresno RE etc...  Just message me. 

@Douglas Goldstein i like your plan, I'd probably do the 30-year mortgage, only so that you max your cash flow initially in the event that something goes wrong and you need cash to make repairs, etc...  With a 30 year loan, you also have the option of paying down the loan using your cash flow if you have extra cash.  with a 15 year you won't' have that option, you will be forced to pay more into your loan.   The nice thing about a 15-year loan, however, is that it forces you to make that payment and pay the home off early.....so if you want flexibility, 30-year loan.  If you want more structure in the loan, 15 year.  Does that make sense? 

What part of Fresno are you looking in? 

@Dale K Poyser i've had really good luck in Fresno, it'd be worth looking into for sure.  

I use dibudio and defendis and they have always come through for me.  let me know if you need a contact. 

right on Tyler, congrats on getting started! it does seem like moving every few years would be the easiest way to get started with less money but having kids myself I understand the difficulty, not to mention that at some point they will have to switch schools etc... Sounds like your own home must have a fair bit of equity since you have a 15-year loan on it, you are most likely paying a lot more into equity each month than you are paying into interest. I wonder if there is an opportunity to use a HELOC or do refi cash out into a 30 to get some extra cash and by a non-owner occupied. I think that's what I would consider. Let me know if you want to chat more, just shoot me a message. Have a good day and good luck!