All Forum Posts by: Jon Catterson

@Ryan Weatheroy Yes, I have been to both. The West Sac one was on the 5th. It is happening next month with a presentation on owning vacation rentals. The Folsom one is happening again on October 15th. It's in the Real Estate Marketplace --> Real Estate Events and Happenings section. 

Both are pretty good for discussing real estate with others who like it obviously. I recommend attending either or both. 

Hey Matt, this should take you to the current post: https://www.biggerpockets.com/forums/521/topics/876927-west-sacramento-re-investor-meetup. Let me know if it doesn't. 

Thank you to those that responded in this thread as your replies have been very helpful. If you are still following the post, I have a question.

I read in The Self-Directed IRA Handbook by Mat Sorensen (a book recommended in another thread) that if one is purchasing for example rental real estate utilizing a loan, one may need to transact it with a non-recourse loan and put 30%-40% down or at least 60%-70% debt-to-equity which I believe would be the same thing in an accurately priced property.

If true, that would hurt the cash on cash return I would imagine. I analyzed an SFR using 40% down and the CoC was 6.8% though the cash flow was $293.

So are non-recourse loans with 30%-40% down the norm or is 20%-25% down possible? I guess I could just try to find a great deal but such a deal might require all cash anyway. 

I appreciate any feedback on my question. 

Hello Artem,

Thank you for posting your numbers. Here are some questions I have.

This is a 3 bed 2 bath house hack. Is this two units or do you mean you'll have roommates?

The interest rate seems a little high in the current environment, but I don't know Indiana. Could you get a lower rate?

How sure are you that rent and market appreciation will be 3%? It seems a little high to me, but again I'm not familiar with NW Indiana.

Could you have the tenant pay water/sewer/trash or is that not typical there?

For your other monthly expenses, I assumed that was home insurance and mortgage insurance premium since you listed neither. I'm also wondering where the principal and interest payments are.

I suppose the house is going to need a little TLC so repairs and maintenance is at 10%. Should vacancy be at 8% or a little lower?

Based on what you posted, it doesn't look like a deal to me, but I could be off. Thanks for posting. 

Hey Ryan, welcome to BP.

https://www.biggerpockets.com/forums/521/topics/878590-folsom-out-of-bounds-meetup - this is one in Folsom. In person. 

https://www.biggerpockets.com/forums/521/topics/876927-west-sacramento-re-investor-meetup?page=1#p5139484 - this one is based out of West Sacramento. Zoom so people from all over join sometimes. 

Thanks Jeremy. Mentioning Sacramento in case people with that alert want to check it out. 

Hey @Jason Yee, welcome to BP. 

Feedback on your plan at least regarding Sacramento. It may be hard to find cash-flowing rental properties in the Sacramento area. Over here, the average home prices are definitely not as high as what you see in your slice of the East Bay, but the average rents are going to be smaller as well. 

I see you're registered for the next webinar. I don't know what the topic is but Brandon or David usually go through the rental property calculator in every one. I'd suggest running the calculator over a few properties in Sacramento. Keep in mind you get 5 free ones if you want to do the outer Bay too. 

Some people such as Joe Bertolino (if you post here later Joe, I don't know how to @ people that aren't in the conversation already) can find good rental properties in Sac. But I doubt even Joe would say this is a "target rich environment", at least for rentals. 

Good luck to you!

 Hi Nathan,

I have a question. How would wholesalers do that exactly? I mean what are the processes, actions, and results? Also, how is that different from what most wholesalers typically do? Thank you in advance. 

Hello Sergio,

How much cash flow do you think you need to retire? Are you going to be lean and need $40,000/yr cash? More middle of the pack and $70,000? Or do you want a more luxurious retirement and need $100,000+/yr? 

But actually, that number is not that relevant. I recommend you read The Book on Investing in Real Estate with No (and Low) Money Down by Brandon Turner. There are many ways to get into the game without a good base of cash. 

Hello Matt,

Welcome to BP. You may want to check out this meetup which occurs every month mostly on the first Monday: https://www.biggerpockets.com/forums/521/topics/872445-west-sacramento-re-investor-meetup

It took place in West Sacramento before Covid; it's pretty much a greater Sacramento area meetup. Topics vary from month to month. If you tell the organizer, you want to discuss multi-family, there is a very good chance he will include that as a discussion topic. 

Good luck and hope to see you on the Zoom call in October.