All Forum Posts by: Kelvin Schaeffer

You need to find a investor for joint venture or partnership that's willing to cover all of the down payment, but most likely most investors going to want you to come up with at least half the down payment .Lenders aren't going to invest in your flip in less you have some skin in the game so 0% down is never going to happen.So your best bet is to find a private lender willing to put up the full amount of the down payment.

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Originally posted by @Yinan Q.:

@Reuben Stone

I hear you loud and clear. In many areas the market is too hot for investors. I am in the Seattle area and here is just one example of the many overpriced properties on the market:

4plex built in the 1970s. C property in B neighborhood.

Each unit has 3/1.75, rents for $1,150/month, including water and trash.

The listing price? $660,000!

Using the 50% (probably should use 60% since the landlord has to pay for water and trash) and assuming 5% vacancy, cap rate is only 4%.

Who would buy at 4% cap rate? I don't know. I know I won't.

Yes Yinan Q property in A and B class neighborhoods or difficult the numbers just don't make sense I suggest looking in the outer areas like Renton ,Kent ,Burien,Des Moines, Lynnwood ,Shoreline to invest in even Tacoma .I own a 4 plex in Des Monoes even doe it's a C+ Neighborhood the numbers make sense and I have very little vacancies and the property is cash flowing. I'm at a cap rate of 8% and with only 3.5%down FHA.

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All Forum Posts by: Kelvin Schaeffer

Kelvin Schaeffer has started 6 posts and replied 33 times.

Post: Fannie Mae / FHA

Post: I need help funding my flip.

Post: Hot market with over priced properties