All Forum Posts by: Jeremiah Lee

Yes, I agree with everyone above. 1% rule is almost impossible in SLO, If you're looking for long term buy and hold you're going after appreciation over cash flow. If you wanted to go long term buy and hold and not have to put large percentages down expanding your range to North and South SLO County could be beneficial. Possibly looking at multi family homes, or starter homes at lower price points can make the numbers work. I'm also much more attracted to properties where I can take advantage of the newer ADU laws which can really make your numbers look much better. Who knows what will happen over the next few years, but I would bet on SLO as one of the best places in CA for appreciation over the next 10-30 years.

Thanks  @Ben Tilbury!  In nicer part of Nipomo.  Low maintenance most def.  I'm thinking a few trees, some CA native plants, maybe a concrete patio and fire pit?  

I'm curious what type of landscaping would be attractive to renters, but also get you the most bang for your buck? What type of landscaping- Back yard/Front Yard would you put in with the following: 

-New Mid Grade Modular ADU/Granny Unit

-1,150 sq ft home

-4,000 sq ft lot

-Currently no landscaping, just dirt 

-Location: San Luis Obispo County, California 

Thank you! 

I currently have a house on a one acre lot in San Luis Obispo, CA County that i'm interested in dividing into five separate parcels(4 empty parcels 6,000-7,000 sq feet & 1 parcel with the existing house).  My goal is likely to sell everything off after the County has recorded the new map. 

As a very rough estimate, I'm guessing it could cost me $150,000-$300,000 to get to a stage where the County of SLO would record the map showing 5 separate lots.  However, I also understand the process from start to finish can take between 1-3 years.  What types of loans would you recommend I seek out given the range in cost and time frame to completion?  Any other opinions or thoughts are greatly appreciated as this is a new type of project for me, thank you!  

-What are the pro's and con's in using a HELOC vs Conventional loan on this long term rental?

-What are the risks in buying with the HELOC in the scenario below?

-Is it challenging to find a lender that would allow a cash out refinance in this situation? 

Appraised Value: $140,000

Purchased Price: $115,000

Rent per month: $1,150

Location: TN

Property Mgmt: 10%

Option A:

Purchase with a $120,000 HELOC, with a 6% interest rate, hoping to cash-out re-finance

Option B:

Put down 20% with a conventional loan at 5% interest rate.

Thanks guys, appriciate the info. I'm actually interested in purchasing in TN.  At least for starters I'd probably like to have a realtor or broker help me out. 

I've only purchased a home using a mortgage, so I'm very new to this as you can tell.  

Let's say you make an, "all cash offer" which you plan to fund from your HELOC on a single family home and it's accepted by the seller.

-For newbies, would you suggest using a Realtor to write up the contract?

-If I used a realtor to write up the contract, I would assume that I would pay 3% commission to my realtor and there would not be any additional commission paid.  So if I offered $100,000 for the home, I'd actually be paying $103,000 total.

-In this scenario, does the seller often use a realtor or broker? 

-I imagine the majority of this is negotiated between the buyer and seller, however what have you seen as a standard for making cash offers on off market deals?  

Hey All,

I'm wondering how to determine if a wholesaler is legitimate or not? What type of things to watch out for when considering a wholesale deal?  Also, is there a list or does anyone have recommendations for legitimate wholesalers in the Memphis, TN area? Thank you!

Thanks Melvin,  what's your definition of upfront fees? There is $1,834.00 for items payable in connection with loan for option C and $2,036.50 for option A.  Sorry, newbie here.

If I were purchasing a SFH as my first investment property outside of my primary mortgage, Is one of these options clearly a better way to go? Assume if I only put down 20%, i'd use the remaining cash to save towards my next investment home.

Sale Price: $120,000

30 yr fixed

Option A

Interest rate: 4.5%

Down Payment: $30,000 or 25%

Total Cash Required: $34,967

Option B

Interest rate: 4.625%

Down Payment: $30,000

Total Cash Required: $34,517

Option C

Interest rate: 4.875%

Down Payment $24,000 or 20%

Total Cash Required: $28,751

Also, is shopping around the only way to determine if your getting a fair deal?  Thanks!