All Forum Posts by: Patrick Thomas Dickinson

@matt

Investment Info:

Single-family residence buy & hold investment in Concord.

Purchase price: $1,095,000
Cash invested: $135,000

Sfh in concord ca

What made you interested in investing in this type of deal?

Long term appreciation

How did you find this deal and how did you negotiate it?

Zillow mls

How did you finance this deal?

Conventional financing

@Allen Wu cash flowing like 250$ and interest rate on ca property is 3.38 my intuition is telling me to hold the property because rents will probably go up significantly over the years and my chance of appreciation is probably higher in sf Bay Area. Im just trying to get some ideas of what others might do if they were in my situation. I want to go larger multifamily or commercial one day but with the rates going up it might be better for me to wait for wait for rates to drop and 1031 exchange later 

Quick question BP folks, 

My tenants lease is up as of November 1st, 2022 and I am contemplating selling the property: As of right now I could walk away 200kish tax free because I have lived in the property 2 out of the last 5 years. These are my accessory thoughts: 

Is the market going to drop more and I lose more equity ? I dont have a crystal ball but to me this is possible, if rates keep going up very few people are going to even qualify to purchase homes in my area if prices were to stay high. I also see a flood of inventory coming on the market because everyone is trying to cashout and take advantage of there equity. 

But on the flip side if people cant buy/ qualify for homes they have to rent thus flooding the rental market with more demand and jacking up market rents which is good for a landlords pocket. 

Im leaning towards continuing to rent it out, mostly because if I sold I would want to redeploy that capital into  some other investment as quick as possible. That other investment would almost certainly require a loan at a much higher interest rate than I currently have and that doesn't really sit well with me. 

Any thoughts Id love to learn from other peoples perspectives and thoughts. ? 

@Melissa Ulloa please do thank you I’ll

Message you my email 

@James Mc Ree

thanks for the information very helpful. I currently own 4 sfh properties in california and texas, but Im trying to get into medium size ( 5-50 units) multi family space in the near future. Ultimately I want to be so good at underwriting by the time I am looking for deals for myself  I can spot a good or bad deal fairly quickly at least from a mathematical standpoint. I know some things come from experience but I have to start somewhere.  Someone thing tells me to find a mentor or someone who has done what I've done already have them take me under there wing and maybe work for them for free or bring something to the table for them somehow to further my education in underwriting 

I have a simple straightforward question for you bp folks:

If you wanted to become an expert at analyzing small, medium and large multifamily properties as well as commercial property potential investments what would be your path to getting there from beginning to end. 

Thanks

Hey bigger pockets folks, 

Just looking to spark interesting/ stimulating conversation here. 

For the last 2 years I have been educating myself through podcasts, books and actually buying real estate ,

Currently:

5 single family homes in my portfolio. So no I am not a big time real estate mogul. 

3 of these homes are SF Bay area ( high priced , seeing great appreciation , some cashflow)

2 in texas ( lower priced but appreciating fairly well, decent cashflow) 

I am closing on a deal in high priced city here in the Sf Bay Area in two weeks finally and at the end of this deal its going to leave me capital broke but I will have enough money in reserves for all my assets ( more than 6 months piti for all properties) 

With all that being said I am at a point where I feel like I need to reset and just live for awhile, but there are some things that scare me about doing this. 

1. Rates are probably going to go up significantly for the next handful of years= borrow money is not going to get any better at least in the near future ( most of us use leverage so this kind of screws re investors) 

 2. Home Values= Homes will go up, as long as we can't fix our supply and demand issues and then we will be even more priced out.

3. Recession potential: Any thoughts on whether the feds monetary policies will screw this up and put us into a recession, I read that they have past history of doing that. 

4.  Do you think borrowing the most you can while rates are still historically low is the best policy in a environment where a recession could be possible? job losses, vacancy issues etc

5. Any thoughts when rates might go back down and why do you think that? 2024,2025, after we curb inflation back down to 2.5 etc 

6.How long do you think before builders and supply will meet market demand, I know this is area depended but just entertain me with your answers

I KNOW NONE OF US CAN PREDICT THE FUTURE. THIS POST IS MORE TO STIMULATE A GOOD CONVERSATION. I AM NOT LOOKING FOR ALL MY QUESTIONS TO BE ANSWERED. JUST LOOKING FOR SOME GOOD CONVO. 

@Dakota Cochran

just some thoughts because I have done cash out refis before. 

If your still living in the property now your going to get a better refi rate because its still owner occupied vs doing a refi after you rent it out it would be considered non owner occupied thus giving you a worse refinance rate probably. Also 6.5 % is way to high in either situation. Shop around for better rates than that

how much is the property worth ? remember most banks will only lend up to 80% LTV not sure how much money that leaves you with in the end.
 

@Theresa Harris we will both be on the mortgage thanks I will talk to my lender