All Forum Posts by: Nathan Grabau

For me this would come down to the time I have available and what I want to do. If I had lots of money, not much real estate knowledge, and a very busy high paying job I would be more inclined to invest in a syndication. That being said, I oversee my own portfolio and am a Realtor, so the more I learn, the more effective I become for my clients and myself. It really depends on your goals for your real estate journey. 

You want your taxes to be done professionally from the beginning and you want someone you can ask about the tax implications of your investing before making those investment decisions. 

Beyond that, with regards to book keeping, I would wait until your time deems or budget allows for a book keeper. 

Typically you want to avoid having to pay for 2 people to come out, because the trip is a large part of the listing photos. Offering aerial photography is a nice benefit too so this could help you get in the door with some agents! 

One of the biggest things to look for, is where the bookings percentage substantially exceeds the listings percentage. The dark pink line is the bookings and the light pink lines is the bookings. For example, in my comp set, 85% of listings have hair dryers, but they make up 93% of the bookings. 

Here is a link to it: https://drive.google.com/file/...

My buddy Kazu also has a deeper dive video with price labs and how to use it, here is the video: 

I also agree that is it too bad that the forums degrades the image so much. Let me know if the links do not work and I can try to email or DM them

I would go into the price labs data and compare your house to the other properties that are getting bookings and compare what you are doing to others. It really could be something as small as your cleaning fee is $15 too high or everyone else has something like carbon monoxide detectors in their amenities list and you have them, but the box is not checked. Below is a screenshot of what you want to look for on your pricelabs dashboard. 

Seller financing is not really location specific. Your biggest risk once you have negotiated the deal with SF is that the person has note that is called, but I would just call their mortgage servicer if they have a note and see what their policy is with regards to due on sale clauses after title is transferred on properties. 

The next thing I would be concerned about is being able to refi balloons. If you are going to have your deal be a 3 year balloon on a 25 year am at 5%, with 0 down, your loan is only 7% paid off by the third year and you won't be able to find a traditional lender to do a 93% LTV loan. If you do a balloon, you need to make sure you have a plan for your refi.

Lenders often will liquidate delinquent mortgages to get them off their books. This was a common practice in 2008 when mortgages heading to foreclosure were sometimes sold for under 50 cents on the dollar. 

Lenders make money on interest or selling mortgages, they do not make money in foreclosures, so they will sell the loans instead of having to manage a foreclosure. 

Does this help? 

So a few things to know right off the bat, it is hard to get a sub 100k cash out refi. This is not impossible and the slower market makes it easier, but I would make sure you have the lender lined up. 

Next, on a cash out refi, you will not be able to get 85k on a 90k property. You can only get 80% at very best as an LTV, so your cash out refi will be for 72k, at most.

On the rate for the refi, you pay a higher rate for a cash out refi than a new purchase or noncash out refi, and you pay a higher rate for it being an investment property. Between these two things, at today's rates I would underwrite a cashout refi at 8% interest rate. 

15k for repairs feels very optimistic to me. I have not seen the property, but this budget can get blown very very fast if issues such as having to replace a roof or furnace or repipe the house. 

At 65k this seems like a bad deal and that is before we get into a discussion of how brutal it is to manage and how little appreciation you get from a rental that is worth less than 100k. In my mind, you would need to be at a sub 50k purchase price to make this a good deal.  

I would look for people who were managing their own properties and then decided to create a property management company. The systems someone made for themselves and now want to sell to other people tend to work much better than the systems that people built using you and others as the test subjects. Property management is really really hard business, especially in lower rent markets. If someone has an "up for the challenge" attitude that will help a lot.