All Forum Posts by: Pavlos Kasselouris

Since you are just starting I would propose to start with a SFH. Traditionally SFHs are more stable from condos, and the hassle involved will be a lot less.

I would look for some nice houses (I have seen duplexes also) in ormond beachside. Thus you would be able to rent annually one side and try the vacation rental with the other...just throwing it out there for you to think about it.

I have an active license for Daytona area but I use it for personal use only. I live in Miami, but if you need a hook up with an agent let me know.

Personally the only reinvesting in stock market that I will start considering if I ever live from my real estate cash flow, is contributions in a IRA or better in a ROTH IRA.

My thinking is this...right now as an employee I contribute 5% in a 401K plan to get the 50% match of my company (I will not say no to free money). All my other savings and rental income I reinvest to grow my rental portfolio. When I will be able to "retire", hopefully in a young age, I will still want to put a good chunk of money in my retirement account so after the age of 60-65 I might want to get out of real estate and completely relax from it. Nobody knows what his wants and needs will be 20-40 years from now, so having a backup or exit plan must be in place. 

 Thank you Marcela!

I haven't found yet my new deal! I was planning having that 85K in the bank so I'm able either to use cash on my next offer on a SFH, or to put it down as a down payment if I was lucky enough to find a 5-8 unit apartment which met my criteria.

The house I'm trying to refi has a 130K approximate value. I did a CMA a month ago that came 132K without taking in consideration the complete rehab (new kitchen, new flooring, new bathrooms, new A/c, new water heater, new roof)

Because my second property and the new 3rd (closing Aug11) are bought with a partner who is not interested in growth as I am, I dont think that he would want to go after a portfolio loan. I feel I'll be better off going after a commercial loan with a LTV 20%

So from what you are telling me the numbers Quicken is suggesting are decent for my situation? I hope they don't come back after the underwriting with a higher number, like they usually do... 

This is my first essentially official mortgage.

I applied at Quicken Loans for refi of my first investment property that I had bought cash. I asked for 70%LTV. I was offered 90.000 which 4K will be closing cost at a APR 5% for 30 years.

Should I shop around? If so where?

I had been turned down by my bank Wells Fargo for a home equity line of credit 5 months ago, because of my young credit history and also because I had only 1 month with my current employer. They also started that I had too many credit inquiries but that I cant do nothing about, especially when I had to get a couple of credit cards 2 years ago when ai came to the country, a car, and now mortgage.

This loan will fund my 4th deal.

Since I'm in my very early stages of building my real estate portfolio, constantly I'm thinking about the way of optimal expansion. Of course this means that I have to have in place an aggressive but at the same time realistic business plan. This business plan from what I have read might require at some time a 1031 exchange. 

The general idea I get it. In so many books they are referring to 1031 exchange as a very simple thing. But then while I'm thinking the details of selling 3-4 SFH, and with all the time restraints how is possible to acquire a bigger property that suits your business model at that time period?

A house priced right will sell in 1-3 months. Time that you need to find the right property up to 12 months...how do you manage to make it work???

 Practically negative cash flow means that every month you will have to put from your pocket a certain amount. If we take into consideration any unexpected situations the mortgage payment alone with property taxes insurance etc will be huge! 

I am in favour of positive cash flow no matter what! The key is not to pocket the extra cash but use it either to grow, as a downpayment on the next one, or paydown your mortgage essentially turn it to a 15 year mortgage by yourself but without having the added pressure...

If you do mockup calculations of how to grow as fast as possible you will see that leveraging is the way to go. In order for me to analyse a specific investment property I calculate always putting down 20% and having a 30 year mortgage. I have to be able to compare apples to apples. Then if theres on the table another creative financing deal I run the numbers with that in mind but positive cash flow is always on my goal.

@Nick Stango

It all depends on your goal and your risk tolerance. For example the way I see Real Estate Investing, is 1) set an income target, 2) calculate how much real estate units you will have to own free and clear in order to reach that target 3) Grow as fast as possible to that point by leveraging and maximizing your ROI (thats where your calculations will show you that 30year mortgages are better) and then 4) start the pay down process (this is where your interest savings will occur like using a 15 year mortgage)

I hope I helped

I read the other posts about this matter, so I'll ask directly my unanswered question:

How to I assume the lease contract in place? Do I change the name of the landlord and have the tenants initial and me signing at the end, or do I create a new lease? How does it work?

Thank you all in advance! 

In the state of Florida e-signatures are accepted and use a software from the local association of Realtors. You could just email the docs, they sign them and scan them back. Just get the deposit as earnest money...

I know that there are real estate groups out there, but I thought that this would be a good idea for some of us that want to improve, exchange ideas and have a more direct communication with each other, without leaving the comfort of our house.

So my idea is to connect with other Florida real estate investors, and analyze 2-3 potential deals that we are considering through a conference call. We could setup a specific day and time that we can meetup online using Google hangouts or similar software. 

Any ideas on this subject? They say two minds are better than one...why not 5-6?

PS: When I used to play poker semi-professionally this was something that improved our game and help us evolve to a higher level.