All Forum Posts by: Kyle Steiner

Thanks Aaron, I called the listing agent and he informed me that they had several full price offers.  Unfortunately, I don't fall into category 1 of your earlier response (i.e. I'm not able to buy wholesale materials or keep contractors on payroll) and I don't want to be in category 2, so I let this one go.  Based on what I learned today about the market in Lancaster/Palmdale, it looks like it's time for me to find alternative ways to get deals.

This property is not in Orange County.  It's in the Antelope Valley/Palmdale/Lancaster area.  Good points all around though.  At the list price, the property won't cash flow with less than 30-40% down and you're not going to make anything on a flip after repairs. I guess investors buying these kinds of property without any discount are just speculating that the market will keep going up.

I'm planning on submitting an offer on a short sale and I wanted to get the community's advice on the best strategy for getting the offer accepted while not going over my budget.  I made a conservative estimate of what I think may be needed in terms of repairs and upgrades and based on my desired profit, my max offer is about $50,000 lower than the list price.  My assumptions are really just shots in the dark because I haven't seen the property in person and there are no interior photos of the house.  So it's possible that I could offer more if the needed repairs are less than my assumptions.

$50,000 less than the listing price is a significant discount over a house that is already listed about 10% less than comparable properties.  

If you were to make an offer on this property, would you submit an offer higher than you were actually willing to pay and then request seller credits once the inspection report comes back?

Or would you submit a conservative number in the hopes that it gets accepted and you don't have the back-and-forth that comes from requesting seller credits?

Welcome Cody.  Do you own any residential rentals or other investment property in Long Beach or elsewhere in So. Cal?  What kinds of deals have you found in Long Beach that would be enticing to those with an investor mindset?

Thanks for your response @Ashish Acharya.  This is a Equity Credit Line on a rental property, it is not being collateralized by a qualified residence.  It's not a cash-out refinance.  It sounds like using the general tracing rules, I'll be able to deduct this interest on my taxes.  Is that correct?

Also, if I understand correctly, since this is not a loan on a qualified residence, if I hypothetically decided use the funds for something other than business or investment activity, the interest related to that use of funds would not be deductible.

@Kanwar Sodhi, I'm not affiliated with the original poster but the ad says that it's already leased - see quote below.

"This turnkey rental has been fully renovated, leased & has management in place to make this a passive income property to add to your portfolio!"

Also, she doesn't mention seller financing in her ad.  I'm assuming you saw the $15,000 down payment in the PDF document that she attached to her post.  I think that's just to show you, as an example, how the numbers work out if you put $15,000 down and get conventional financing.

@Rod Hanks, what kind of deals are you seeing in DFW?  Any there any opportunities for 1 to 2% deals there (i.e. monthly rent is $1,000+/mo on $100k property)? 

I've heard with the appreciation of the DFW market, good cash flow deals are becoming harder to come by.  

What criteria do you look for both in terms of cash flow and property type when investing there?

I'm getting a HELOC on a rental property I own and I'm wondering if I'll be able to deduct the interest on my taxes. I plan to use the funds exclusively for the purchase of rental properties and/or flips and related investing activities. I read the answers to a similar question here: https://www.biggerpockets.com/forums/51/topics/436....  

However, that thread dealt with HELOCs on a primary residence, which is a different situation than the one I'm facing.  Any help with this question is appreciated.

I live in Southern California and in an effort to find a more affordable market that's still in-state, I've been looking at places like the Antelope Valley.  Specifically, I'm interested in the Palmdale and Lancaster areas, and to a lesser extend, Rosamond.  I'm wondering if anyone here has experience in these areas and I'd love to hear what you all have to say about this market.  I have been doing some market research and it looks like the median price of homes has been steadily increasing ($260k in Jan 2016, $285 in Jan 2017, $312k in Nov 2017) and days on market have been steadily falling in this area (21 days as of November 2017).  I'm interested in doing some direct marketing to find motivated sellers, closing on the deal, rehabbing and flipping.  I'd like to focus on 3 bed/2 bath or 2 bed 1 bath homes that need mostly cosmetic repairs but I'd be willing to take on a bigger project if the potential for larger profits are present.

I am open to working with other investors in the area.  So if you have a track record of success and are looking for a partner to invest along side of, let me know.