All Forum Posts by: Josh Edelman

@Eric Anderegg I am helping a few folks out with their properties in Pahrump right now. My recommendation first is look at how much money you would be throwing away by renting for several years. Not sure what your family situation is, but let's assume the rent is $2000/mo. That's $48K in two years you could have used on payments elsewhere. 

I think with the equity from the potential sell, (try to avoid capital gains by living in it 2 of the last 5 years), you could put down on a property to live in and then a potential out of state investment. Vegas market is tough. You won't find the numbers that everyone hypes up. Look at $350-450k properties, and focus on finding this  first home in Vegas. If you can househack or rent out a casita or separate room, great. If not, plan to rent it out when you move next. I am working with several clients finding properties with either a split level to househack or with a casita. 

@Eric Fernwood made some excellent points! When I bought in Las Vegas I specifically linked up with an investor friendly and experienced agent, Falisha Rexford - she is crushing the game. Because of her insight and all of the information she provided that  Eric mentioned, I made a great first purchase which helped me start off strong as my first rental property. Needless to say, when I became an agent (and joined her team) I learned from her and realized how much more value an investor friendly agent can be and much more insight one has. 

If your plan is to hold for a long while, I'd look at the cost of the refinance and how long it would take to recoup that costs from your monthly savings from that change in mortgage payment. If the refinance isn't too much it might be a smart move. 

If you use a HELOC it won't cost as much but you will have interest only payments (most likely). It really depends on some other factors. If you have a plan to fix and flip and can payback that HELOC ASAP, it may be advantageous. But if you were to hold that HELOC for a while you will be adding up these interest only payments to where refinancing would have been the better option.

I would recommend the HELOC. I just did the exact same thing you are thinking of here in Las Vegas. I was taking a HELOC out on my primary residence with the intent to make it a rental property (so lenders considered it a rental) but I did find one that hooked it up. But I took out 60k HELOC to buy a SFH, moved into it, rented the first home out, and now I am aggressively paying down the HELOC every month.

I was looking in Texas (San Antonio) and also North Carolina. No success yet but where have you looked and what are calling specifically for? Seller financing?

$100 more per month

I am struggling with this as I do Furnished Finder/Airbnb for 30+ days. I had a month vacancy and that was due to a fall out last minute by an applicant. I think it takes work to find a tenant prior to the end of lease. I would say try to time the leases so they line up with big movement periods.

For example in my city I know military move in and out in the spring/summer and fall timelines. I also know when new builds have buyers waiting to move in. I use this data to predict the higher demand seasons. Either way, its still a little riskier when it comes to vacancy if you are not in a high demand area. 

Get with a great real estate agent who can talk you through all these scenarios. Biggest thing is just jump! You may not get even close to what BP podcasts say about cash flow and rates. Get as close as you can. Remember, the market today is not the same as it was when BP podcasts started years ago. The books have concepts that apply, but the reality is different in the economy. Do your best but don't NOT start. 

Neighborhood ratings like A, B, C are typically based on a variety of factors such as location, amenities, accessibility, safety, school quality, housing prices, and more. While the specific criteria used to assign ratings can vary between agencies or professionals, here are some common factors:

1. - Location: Neighborhoods that are close to urban centers or have easy access to transportation may be considered more desirable and may receive a higher rating.
2. - Amenities: Neighborhoods with desirable amenities like parks, shopping centers, restaurants, and entertainment options may receive a higher rating.
3. - Accessibility: Neighborhoods with good transportation infrastructure or easy access to major highways may receive a higher rating.
4. - Safety: Neighborhoods with low crime rates and high levels of safety may receive a higher rating.
5. - School quality: Neighborhoods with good schools may receive a higher rating, as many families prioritize access to quality education.
6. - Housing prices: Neighborhoods with high housing prices may be considered more desirable and receive a higher rating.

Here are some examples:

A-rated neighborhood: Beverly Hills in Los Angeles, California.

B-rated neighborhood:  Columbia Heights in Washington, D.C.

C-rated neighborhood: : East New York in Brooklyn, New York.

1. I have assumed a VA loan. I did a few months ago and live in the property now. ANYONE can assume a VA loan - you don't have to be a veteran. Just like an FHA loan, it took about 70 days to close as the lender hadn't done assumptions in a long while.

2. I took out a HELOC to cover closing the 60K I had to put down.