All Forum Posts by: Kushaal Malde

@Aakash Deol always best to run the numbers conservatively, compare with your expectations and preferences as an investor and then make your decision. If the numbers work, then make it happen. You may find deals are harder to come by but you will also need to see/create value where others aren't: could be through insight about a neighborhood few folks know about, house hacking, leveraging your relationships with existing homeowners who may not necessarily be looking for best sale price. Whatever it is, you are the problem solver, you are the deal maker. Keep running the numbers until you find something. 

@Vincent R. does your $40k in Operating expenses include the Property tax being reassessed at the purchase price value? A conservative estimate would be 1.5% of $1.8m or $27k per year, leaving you with a budget of $13k for all other expenses per year. 

@Aakash Deol as others have mentioned, if the numbers make sense for your strategy then it will almost always be the right time to buy. The difficulty is finding/creating a deal to fit your needs. The market is cyclic and dynamic, so values and interest rates are always in flux and it can be futile to try and time it. 

Turnkey typically means SFH. Since you're already buying in GA, you could connect with turnkey providers local to your existing portfolio. But in response to your first post, your 2 thoughts are sound: a house hack will be something you could do tomorrow and will benefit you immediately and meanwhile learn more about syndications and PE if you're time is better spent at your day job (do what you do best, hire out the rest).

Also, I'd love to connect--- I'm pretty local to you here in Redwood city!

What are the reasons you think you need the LLC for? Landlord insurance should always be the first line of defense (beside maintaining the grounds of the property). Encumbrance by a lender is a second line of defense for AP. Unless you have a portfolio of rentals or a complex ownership structure, you should not really consider llc. Not to mention fixed costs for filing taxes, state licensing and annual registrations.

@Andres Salinas welcome to BP. Talk to Semiko Prim at Chicago Title company on Medau place in 94611. What areas and neighborhoods do you market in? I'd be interested to get on your lists. 

@Jonathan Pflueger I would actually like to take your offer on this: chatting about the area there in Ben Lomond. Would like to hear about what kind of numbers and activity you're seeing. Interested from a 2nd home/vacation rental perspective. 

@Jonathan Farin Great job on creating this opportunity! Depending on your credit score and the loan amount, you could have options with conventional pricing with as little as 3-5% down. Just to clarify, the 6% you mentioned is a cost to the Seller out of the purchase price, so the seller will be saving the 6%. 

When you say cost effective - are you looking for lower down % or creative financing? Since you have a relationship established, if he owns the home free and clear, would he be willing to Seller finance? This would probably go against lower down % because the Seller may want to see much higher % down, but this is simply a term to negotiate. 

Try to find out what his goals are here on the sale - does he care more about Price, does he want a quick close, does he want to be the bank for you if Seller financed, would he consider Rent to Own etc. If you can dig a little deeper into his motivations, that will help guide your purchase strategy.

@Carlos Handler what does the Property tax bill show the property type as? How long ago did the previous owner split the SFH into two units?

@Alonso Figueroa it can be helpful to check with the County recorder to check chain of title and ownership and the County assessor to check property taxes (itemized breakdown, assessed value etc). 

https://communitycrimemap.com/to check crime visually. 

I also would call the non emergency 911 line to ask for their Media Log from the most recent 5 years--every 911 call is logged here in rich detail.