All Forum Posts by: Ko Kashiwagi

Hi Rafael,

Generally you are expected to live there for a year. However, you may also be constricted by DTI requirements, as DTI increases as you obtain more properties. Once you are above 50% DTI, most QM programs would be ineligible.

Hi Ashton,

So you own 3 properties free and clear? You might want to consider a cash out refinance, which would allow you to get out up to 75% of the equity. The rates will be much lower than a HELOC and the leverage is also higher.

Hi Jared,

For the best rates and terms, you'd want a FICO score of 720 and above. There are low down payment options for purchase & rehab financing if you are doing a BRRRR, but for a turnkey rental, down payments generally require at least 20-25%.

Happy to discuss further.

Hi Anthony,

Were you looking for an equity partner or a lender to finance this? A common strategy here would be to use conventional or DSCR financing, which would require 20-25% down. Given the purchase price of 635k, it may not debt to cover at 20-25% down, so conventional may be the route here.

Hi Cole,

Congratulations on the purchase! I would start with the comparables in the area. I presume you are trying to "add value" in terms of increasing cash flow, not in terms of increasing the value of the home (for you to later cash out refinance)?

The first question would be if there is value to be added (as it seems like your property is already updated and you've given good amenities) - are there comparables that are collecting higher rent and if so what are they doing differently? I think there is a diminishing marginal benefit to upgrades you can do increase cash flow here given most things in your home is upgraded. If you think you can rent this out as a short term rental, then that is another story and I think you're 10k could be well spent to increase cash flow.

Hi Richard,

It's difficult to say without more details. Is this just a cosmetic rehab or are are there problems you have to fix in electrical, plumbing, utilities, etc? I'd ask the agent if they have an estimate, and then get an estimate from a contractor.

Hi Natalie,

I used to source deals for investors out of state. There's generally 2 ways to go about this.

1.Find an agent who will put in that work - one that sends you better deals and actually shows pictures of the insides. Investor-agents like this that go above and beyond are honestly not easy to find, and usually agents like this already have a lot of clients that they've worked with. However, if you can find these agents, you will be able to build long term relationships and get through many deals with them.

2.Find a boots on the ground, separate from the agent that will do some of this work for you. This could happen in many forms. You could get an investment partner that is local. You could get your contractor (who will do the repairs once you get a property under contract) to send pictures and give you estimates. You could hire a photographer or handyman to take pictures for you and be the boots on the ground.

Hope this helps.

Hi Daniel,

Flipping in rural environments with limited comps is a risky move, so personally I wouldn't do it as the risk is too high. You're putting in 80k all in, and selling potentially for 115k after 4 months - I think you could find an area with better margin in my opinion. If you're proceeding, it's probably best to connect to an agent who has sold the most houses recently in the area. Perhaps contact the agent who sold those properties for 115k and 165k for more insights.

Hi Ethan,

Recently attended an Airbnb presentation. What kind of airbnb would this be - for traveling workers, vacation spot, tourist spot? As for vacation spots, easiest way to increase attraction is getting creative with designs, especially with paint and get GOOD photos with professional cameras. A little bit of investment goes a long way. Attaching tech stacks used for airbnbs!

Hi Paul,

There are many banks offering 4% range on cash right now, so this one might be a stretch, although worth a shot. I know a hard money fund that would take a look at this but rates will be north of 11%