All Forum Posts by: Omi C.

Welcome to BP @Domonique Hudson !

I've been looking into the KC market. Are you wholesaling SFH, MFH, Commercial, all of the above?

Omi

Welcome to BP @Rob Boese  ! Looking forward to your insights on Fresno and property management.

I'm in as well. The 21st or the 29th will work well. Tagging some folks who were at the last Santa Cruz Meetup..

@Eileen Burke Woodward @Brad Gustafson @Troy Fisher 

I'm in a similar situation. I'm a newbie, live in the Bay Area and have been looking at the Central Valley for my investments. I've focussed on Bakersfield for now. Buy and hold MFH is my strategy.

After a few months I found a property which would meet my requirement of 15% CCR with traditional financing. Got into contract, discovered that the property would need a lot of repairs, and that there were some additional monthly utility bills that I would need to pay. All of this pushed my CCR below 10% which was my absolute lower limit. Tried to negotiate the price down with the seller but that didn't work out and the deal fell through.

This is just one deal, and isn't reflective of the market in general - just giving you a single data point. But I do think that the margins are very slim for the properties on the MLS. I must have evaluated about 200 properties before finding this one where the numbers worked at first glance.

35% seems far too low for me and isn't a risk I would take. However, every property/scenario has its own unique factors to consider. Perhaps if you manage yourself, *and* you don't consider your own hourly/monthly cost of time you could get close to 40%?

Here is how I break down the 50% rule:

Property maintenance: 8%, unless you manage yourself?

Maintenance: 10%, this might be higher on an older property?

Capital Expenses: 10%, this might be higher on an older property?

Vacancy: 8.33%, assuming each unit is vacant 1 month of the year.

Property tax: 1.3% of market value on average for the central valley. If your monthly rent is 1% of MV, then this works out to be just over 10% of your rent roughly.

Insurance: 0.5% of MV.

I see these as my minimum assumptions. Add all of this up, and you get close to 50%. Lowering these estimates is almost always a bad idea in my opinion.

Thanks again. Thats very insightful. I've got a few loan officers / brokers ready to quote rates / fees without asking too many specific questions about my situation.

Thanks @Albert Bui ! Is there a way for me to apply the variables specific to my scenario and find out the par rate? Its precisely to double check that the loan officer is making the right assumptions that I'm asking this question.

How could I independently find out what the par rate is for a particular conventional loan? I know I could just ask the loan officer, however I am trying to trust but verify. :-)

@Zaid R. I'm looking in the central valley - not in Santa Cruz, so unfortunately the see and feel step happens once I'm in contract! I look at sites like crimemapping.com and trulia or local PD crime maps, and they show current crime data, but not the trends. Sometimes I want to see if a neighborhood is getting better or worse?

@Michael Lauther Where do you get these reports from?

Hi all,

What are the tools you recommend for analysing the criminal activity in an area?

To me it seems that it would be useful to see crime trends for an area over time - not just the amount of crime in the last month or quarter. I haven't found anything online that will help me easily see how this month/quarter compares to the last one. Is this a good way to think about this? If not, how do you generally analyse the safety of an area?

Free or paid tools are ok, as long as you think the data/analysis is worth the expense.

Thanks,

Omi