All Forum Posts by: Osazee Edebiri

Originally posted by @Ingrid J.:

@Osazee Edebiri It depends. What is your end goal? To hit a certain net worth or to be financially free? And what is your timeline for reaching your goal?

 The Goal right now is to be able to not have to work for my company in 3 years.

No stupid questions, right?

I figured there are many more successful investors here on BP than myself, so I should ask and see the response I get.

I have $420,000 to invest, and my primary targets are multi family units (buy and hold, not looking to do flips or wholesales at the moment) and scaling. Scaling the primary reason I am asking this question.

So far I have a triplex in Oakland, but everyone knows the Bay Area, California is a ridiculously hard market to find deals, so I have been looking at Sacramento another hot market in California, but more affordable than the Bay. Current issue is market supply. I don't want to by less than 3 units and ideally want at least 5. I want to purchase cash so I can do the brrrr strategy, but even with 420k, Sac may price out of the 5 unit range. Therefore, at this stage I am left asking what other investors would do to use the funds to acquire and scale quickly?

No stupid questions, right?  

I figured there are many more successful investors here on BP than myself, so I should ask and see the response I get.

I have $420,000 to invest, and my primary targets are multi family units and scaling. Scaling the primary reason I am asking this question.

So far I have a triplex in Oakland, but everyone knows the Bay Area, California is a ridiculously hard market to find deals, so I have been looking at Sacramento another hot market in California, but more affordable than the Bay.  Current issue is market avai

Originally posted by @Jared Rine:

@Osazee Edebiri...Oh got it.  Sorry now it's somewhat clear.  You weren't high enough for their Jumbo, but were able to do Fannie Mae High Balance?  I might have found another lender just to get a 2nd opinion, but it sounds like it was already done.

 Yes Jared, it's already done, I needed to get a move on to start working on my next deal.

@Jared Rine thanks for the response. You asked how short. that was part of the issue. it's not my primary residence. They stated that the property needed to appraise for 875k for the deal to work. This would have giving me 65k return. The property appraised for exactly 875k and then they said that I didn't make high enough for jumbo loan qualification. I ended up getting 25k. I guess the win is that my new interest rate is lower.

Hi BP,

So I am working on a Refi of my property in Oakland, CA. It is unique and therefore there have not been any recent sales like it within a one mile radius. I have already inreased the value tremendously, but the cash coming back from the refi is low because it just under what is needed to qualify for a Fannie Jumbo loan.

I provided additional comps, but they threw them out because they are not close enough, however the lender specifically told me it was a sale, the loan would be higher, because the vaule is clearly higher, but we can't get it done with the comps we have. Anyone have any suggestions?

@Syed-Shawn Azam I appreciate that. Thank you

Originally posted by @David Faulkner:

Originally posted by @Steve Kontos:

@Anita Ahuja

Being that you are already at a small disadvantage being away form the investment 

Boy, that is the understatement of the century ... the disadvantage of being away from the investment is HUGE. Your ability to assess and mitigate risk, buy below market, add value, control operational expenses, manage tenants, detect and solve issues, etc. goes down exponentially with the radius of the investment property from your front door.

I agree.. I live in San Jose and property is in Oakland, I self manage now, but next one I will definitely have management. It is the little things that become cumbersome, overall it is not bad, but will take more of your personal time.

Factor in the 8 to 10% for Property Management, whether you manage yourself or you hire someone else. It will help you when something goes over budget one month. I can almost guarantee there will be unaccounted mistakes on your first property. Good Luck

@Syed-Shawn Azam Nice, having a GC Father in law that you can rely on definitely is a win. You have someone you trust plus reliability. Finding a GC at least in the Bay is really challenging right now, the demand is ridiculous. I got super lucky on remodeling one of my units.

Maybe when I get my next place I might check your soon to be Father in Law Brain out.

@Syed-Shawn Azam solid post, love what you did with 20,000k. I am curious about your background, it sounds like you are working on the property yourself, but you also have a GC. How does the work out? Also, you didn't discuss financing the rehab, so I imagine you are doing that with your earned income as you go? I have a triplex in Oakland, but I live in San Jose, I didn't want to commute to work, so I opted out of living in one of the units. I am working on acquiring funding for a Brrrr in the Sacramento Area now.  However, I realized I want to cut my expenses more, so I plan to do purchase a House Hack as well 3.5% down, before my lease is up. I can't do it in San Jose because with all the cash offers and the competition that doesn't fly. Again great to hear you found a nice one, let me know about the GC relationship question.