All Forum Posts by: Phil Collett

There are a couple Multi units in Rancho, but they are at 4 caps. This one just got a whole $5000 off the price and has been listed for 300 days. Also a $500 HOA fee. Rent is at $6250, but could be at $7850 maybe according to rentometer. There was a 4 unit across the street on Baseline a few months ago right below the elementary school that sold around a 3.5 cap right on the street. I see people trying top get 4 caps out to Rialto and SB.

• 9beds
• 7baths
• 3,746sq ft
• 8,295sqft lot

Same boat, so I started getting out of state properties after going to REI meetings for awhile and not seeing how to cash flow here in southern Cali at the top of the market. I bought my place after the last financial meltdown, so I have plenty of equity to cash flow my house as a rental and I thought about it last year, or an equity split with a friend to get him into being a home owner; but then you have to look at Cash on Equity instead of just cash on cash returns as I have heard David Greene talk about before (just looked it up to make sure and it is in his book http://biggerpockets.com/longdistancebook).

I found a facebook video of David talking about the long distance thing, which you have probably heard on the podcasts (probably won't be able to post the link to fb: https://www.facebook.com/BiggerPockets/videos/newest-biggerpockets-author-david-greene-talking-long-distance-real-estate-inves/10155417628854833/)

run a rentometer on your property. you should easily get $2500 /mo unless your lease started at a slow time like Christmas. my neighbors are both paying $2600/mo for 3/2 and a 4/2 in Rancho below baseline but above foothill. above baseline gets even higher rent. most apartments are 2200/mo at least here and a few idiots I know are paying $2800 for luxury apartments. Funniest thing I heard on a podcast lately was how rancho is the bell aire of the inland empire, but it is true.

It was a cozy meetup for the first. Tyler was gonna look into accepting the requests on meetup for the group, then alerts should go out. It sounds like they are going to fall on the 3rd Wednesdays for now or Saturdays depending on group feedback.

I go to ieric out in riverside and they talk a lot about flipping. I also go to a smaller Saturday group in Rancho Santa margarita for multi family. There are a few I found on here or meetup. You want to go in listening rather than thinking you know it all already. Also, be careful about the guru groups that are all suited up with a sales agenda. 1 had 3 rows of people trying to keep me from escaping without signing up doing the hard close. I will be trying out the larei that a dude named Bill Tan does that is in Covina to see what that is about.

Just don’t rush into it, and make sure you are educated (podcasts, books, and maybe you meet a mentor or can pick experienced people’s brains).

A hard money lender was talking about the same thing at my last rei meeting. His wife is a teacher and you can bridge the down payment money.  After a year or 2, you do what is called a streamline after your rehab or just plain appreciation gets you in a conforming loan.

I did the same on a conventional 10% with pmi and had a brokers price opinion got me out of the pmi after 2 years without an appraisal or refi because of the market rebound. The lender just removed the pmi after the 3rd time I inquired.

Now the real work of finding a property starts. 

Sounds good @Matt Kauffman!

@Patrick McKenna - the small park is in Massilion. I don't know the management, but I can provide Rob's info who does turnkey out there and was representing the seller. Shepherd Advisors, LLC. realestatesimplified.com, I guess I can't post emails or phones.

Once I have some money back from private loans and my rentals refinance I will be talking to him again about other duplexes he had.

I just used my first HML to try it out and I glossed over some of the terms. So mine converted from a 2 month to a longer 6 month and the interest went up but the note date stayed the same (important for refi seasoning). Also, see how the points if any are figured in, mine had 1% at initialization and 1% when I refi out.

Insurance was a builder policy for 6 months, where all of the money was kept no matter how long it took to switch to a landlord policy. NREIG (ReiGuard) let's you convert a builder risk policy to tenant occupied I found out later and so you don't lose out on unused time.  

Thanks @Andrew Postell, I really enjoyed and learned a lot from your delayed finance post previously and is why I took out a heloc in the first place. I was all set to lend to myself as an llc but I had put some of the money to work already. I will have to leave about $15k on this house to get the 75% for the banks, so not too bad.