All Forum Posts by: Michael Lee

Hello and welcome to this site Jack! One of the ways to increase your cash is to try to find ones that are as good or better than those you already own. I usually say not to purchase SFH's rentals but there are a few conditions I approve of and having great demand for them now and the unknown future. I have heard that Las Vegas is turning hot again and maybe the place to locate your homes. Just choose a location that shows better on a piece of paper to be the one location that feels better to you and looks better now or in the future and on their evaluation with no stones are left unturned. Good luck to you!

Hello and welcome to this site Harjeet!  That 5 years goes by too quick.  The Bank is usually taking advantage of you.  Do not believe anyone that might make money off of you.  Best wishes!

Hello and welcome to this site Jay!  I just have one or two things to say.  That should always be one of your pre-offer questions to the Tax Assessor and you should never buy a single unit rental.  It is just too risky.  Good luck to you!

Hello and welcome to this site Nikhil! The first thing that popped up in my mind was that usually there is a HOA involved and should be carefully checked out with regards to their experience and do they expect any near term or long term increases for capital expenditures in their fees and do they have any rental requirements or restrictions? What is their current fee? Just buying one unit as a rental is very risky. It is either at 0% or 100% occupancy.

Therefore, the actual demand for that unit is critical. The floor it's on and it's ease of access is probably critical. Are the common areas well maintained? Talk to a few subject location neighbors about any pluses or minuses they have about that place or the HOA? Check out if any common areas are well maintained? Is there any nearby bus stops for school or business use? Are there any other amenities close by?

Are there any local, State, or Federal restrictions that might effect your plan.  Will you allow any pets? Any prospective tenant screening needs to make sure they understand all of your requirements.  Who will be providing for the different Insurance coverage that completely covers you against any loss and pay the property tax and how much is it and will your purchase increase them?  

Does each unit have its own washer and dryer hook-ups?  Is the space for them large enough?  Is it a space that will fit your target?  Does that location make a good first impression?  Good luck to you!

Hello William and Lynn!  I have a couple comments to both of you. First, it is very unlikely that anyone can rely on what will happen in the future.  No one can think that the prices will go down, there's no guarantee of that.  Just because something happened in the past, does not guarantee that it will happen in the future.  Yes, the Internet has many people on it that are taking advantage of other people in many ways and I have learned that most of the people on there are not speaking the truth and trying to make money by making sales by emotion, fear,and saying how you should do something and knowing that the other are looking for an easy way out and do not want to work hard.

Do not trust what the other person is saying unless you know them and they can be trusted and not just making a sales pitch.  No law is doing anything about who is showing up on the Internet and the fact that most people on their are lying. I do believe that the Internet has increased the competition on home buying and that many people are on there but not enough to know what is really happening and can be taken advantage of and most people on their are lying.  One thing that is true  that knowledge is a key to being successful.  Best wishes to you both!

Hello and welcome to this site Stanley!  I think it is better to go with commercial multifamily.   Residential multifamily (one to four units)  is way too risky.  There is just a few subjects that support that.  It depends on your knowledge that may save that expense if you need an Attorney to review your contract.  You do not need them until you have a final copy of the contract.

Just ask the current Owner during the negotiation time to ask for that.  Then budget accordingly before you make an offer.  Good luck to you!

Hello and welcome to this and putting a good question in here to ask Michael!  If your existing home is very rentable  and you think the future would not change your decision to keep it as a rental and is not prohibited by local zoning.  If those 4 are helping you makerent I think it will not matter to the underwriter.  They are only interested in your ability to pay, especially if they help you make your debt payment.  If you are doing a conventional loan, you will probably would make you pay a 20% down payment.

The way to get a low down payment is to get a "house hacker" loan in multiple units of 3 or 4 units in SFH or get a loan from a Private Lender. Is there not any equity in your existing house or are you already planning to use that towards the down payment? Good luck to you!

Hello and welcome to this site Lauren!The more units you purchase the easier it is because each vacancy will not hurt too much.  The statement about needing experience before you should get into apartment complexes is a myth.  Banks usually require to use your personal name on the purchase contract.  After you close you can just transfer to your created business entity unless your purchase agreement prohibits that.  Not all Hard Money Lenders require your personal credit report or score.  Good luck to you!

Hello and welcome to this site Victoria!  The more units your failure will go down in the percentage.  You are doing one of the things I approve on buying a rental house.  Usually, the better the deal is will make the financing more available.  Do not believe any myths to keep you away of doing apartment house complexes.  I like using income and the power of using the cap rate over Sales Comps.  Another reason I like apartment complexes any vacancy does not usually hurt you like it would in a residential multifamily place would.

Some Private Lenders will also lend to you including any repairs but I understand the importance of using a Bank to get a "house hacking" loan and its low down payment..  Your location is an important factor on rentals as well as nearby amenities and the retail development near there.  Those mentioned factors will effect your demand.

Good luck to you both!

Hello and welcome to this site Marwane! I've got a few things you should consider doing.  The first thing I recommend is to do your research at the city or county you are looking to locate a new property.  The next thing I recommend is the more units, the better.  The main thing is the effect on a percentage number when a vacancy occurs.  I understand that you think you have to start out with a single family home which only one unit or a duplex (1 or 2 units)  can really hurt you with a vacancy.  Many multifamily projects are owned by individuals that may provide you with financing.  Show them on paper how much more they could make and how they can spread out any tax liability over the life of the loan balance.

The next item will say that you need to contact Real Estate Agent(s) that is experienced in that area and has worked with people that did what you wanna do.  My next recommendation is to contact an experienced building inspector and find out their busiest areas and what you could expect from them.  You could also contact one of the Chamber of Commerce to get their help for where you should locate and if he was aware of any future development that might effect you.  

You could also speak to area property managers and see if they have any negative comments.  That subject area's retail development.  Do they target the people that are like what you want.  I would also look at its access and paring.  Are there any amenities nearby?  Does it now or could you do a renovation to the exterior that would make a good first impression?  Good luck to you!