All Forum Posts by: Jeffrey Albaum

Hi @Lee Yoder thank you so much! Greatly appreciate it! 

Would love to connect to talk about the Smokies! 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Cincinnati.

Purchase price: $65,000
Cash invested: $24,000
Sale price: $135,000

Purchased a duplex out in Cincinnati, one unit was occupied, the other needed a somewhat substantial rehab. It was great for me to learn how to manage a team from across the country, as well as learn more about the construction process in general.

Lessons learned? Challenges?

Just because a property cash flows on a spreadsheet does not mean it'll cash flow in real life! This was a great building to start out with but moving forward I'm going to be staying away from ridiculously inexpensive properties and focusing instead on great buildings in great markets!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Equity Advantage was the 1031 company - they were absolutely amazing. Kyle Friedman from Choice Lending is an absolute ROCKSTAR!

Hi Karl - super exciting about your deal! I would reach out to a lender (s) prior to closing the cash transaction and let them know your gameplan - that way they can tell you whatever their requirements are (seasoning, DSCR, etc.) prior to going through with the transaction!

Hey Jordan! Sounds like an awesome deal! A few people have said it but a construction loan or a bridge loan might be helpful. I know of a few lenders (Corevest, Aloha Capita - *Disclaimer that I have never actually closed a deal with either of these lenders)  that have some portfolio products and bridge loans that they might be able to go up to 90% LTC - which should put you within distance to close on this deal....hope that helps and best of luck to you!

Hi Mark! If you find a lender willing to do this please share them here! Would love to get connected with one however in my experience I haven't found one who will do that. However, I have found a few lenders that have DSCR loan products even when the property does not meet a 1.0 DSCR - the rate is just higher. Private message me if you'd like more info but I'd be happy to put you in touch with my loan person!

I think cash flow is a great perk but not even close to the actual wealth that's created through owning real estate over a long time horizon. Real estate value has so many perks such as:

1. 1. Paying down principal over time
2. 2. Rising rents/real estate prices
3. 3. If you're leveraged, being locked into fixed debt during inflationary periods
4. 4. Tax advantages

Hi Hal! I don't have explicit experience with STRs in San Diego - however I do know a fairly large number of investors who are turning to the MTR (Medium term rental) strategy for areas with STR restrictions. By focusing on 30+ day stays, you can still have higher revenues than long term rentals, and can take advantage of interesting niche tenants such as travelling nurses or folks working from home but looking to not be in their hometown. Furnished Finder is an awesome site to post on if you have a MTR and I believe AirBnb even has 30+ day stay options. Hope this is helpful and best of luck!

Hey Sean! That sounds like it may be true of all lenders - however, if you ask for a commercial loan product (even though you're buying residential) they can underwrite the loan using the properties income instead of your personal debt to income ratio. You'll pay a slightly higher interest rate but it's better than losing the whole deal!