All Forum Posts by: Quinten Sepe

Hey Jason,

I live and invest in KC and know the area well. I'd be happy to help you vet any area you are considering and give you an accurate description of the demographic from a local.

I also second the above statements on NE. I cannot speak to OH at this time.

Best of luck in your search.

-Q

Mark F. Thank you for the advice. Sorry for not including that info in the initial post. We do intend to keep the property for quite some time. Your feedback further compels my thoughts toward the lower rate.

Hey All,

My mortgage broker got back to me with three options for our fee summary and amortization schedules.

Option 1:

Interest rate: 3.875%
Lender credit: $340.52
Total cash from borrower: $7,082.68
Total monthly payment: $934.36
APR: 5.276%

Option 2:

Interest rate: 4.000%
Lender credit: $875.45
Total cash from borrower: $6,552.67
Total monthly payment: $942.82
APR: 5.395%

Option 3:

Interest rate: 4.125%
Lender credit: $1,342
Total cash from borrower: $6,091
Total monthly payment: $951.34
APR: 5.513%

I'm initially inclined toward the lowest interest rate, but given that I can write the mortgage interest off (up to 1mil), is it better to take to larger lender credit?
Is there a key component that I'm not considering?

Thanks for your help!
-Q

Hey All,

My mortgage broker got back to me with three options for our fee summary and amortization schedules.

Option 1: 

Interest rate: 3.875%
Lender credit: $340.52
Total cash from borrower: $7,082.68
Total monthly payment: $934.36
APR: 5.276%

Option 2:

Interest rate: 4.000%
Lender credit: $875.45
Total cash from borrower: $6,552.67
Total monthly payment: $942.82
APR: 5.395%

Option 3:

Interest rate: 4.125%
Lender credit: $1,342
Total cash from borrower: $6,091
Total monthly payment: $951.34
APR: 5.513%

I'm initially inclined toward the lowest interest rate, but given that I can write the mortgage interest off (up to 1mil), is it better to take to larger lender credit?
Is there a key component that I'm not considering?

Thanks for your help!
-Q

@Edgar Estrada, first congratulations on investing in KC.
Second, I agree with @Chris Dawson. There is a lot to be had in the KC area. If you have any specific questions about certain neighborhoods or locations, feel free to connect with me. I know the KC area very well. I live and invest here.

-Q

Ashley Kendrick | Chartwell Realty Ashely truly knows all of the KC area like the back of her hand and is very well connected. She has represented me in a few deals and others that I have recommended her to have had great experiences, as well.

Currently reading Ken McElroy's, The ABC's of Real Estate Investing and Mike Michalowicz's, Profit First: A Simple System to Transform Any Business from a Cash-Eating Monster to a Money-Making Machine.

@Account Closed I always find Charles Duhigg to be an enjoyable read. I recently completed his, The Power of Habit: Why We Do What We Do in Life and Business. Recommended.

In my hunt for our first duplex investment, there is a particular property that has piqued my interest.
(I'll preface this all by saying that the numbers work out and put this opportunity just over a 10 cap) 
Here's the breakdown:
Direct, quick, easy access to the highway, grocery, shopping, etc.
A small grouping of duplexes and sfr, physically surrounded by well reviewed apartment communities with little to no current vacancy.
What I find myself pondering is if all of the surrounding apartments are a negative (read: competition) or a positive (read: drawing potential renters to the area that may be interested in my duplex).
The duplex rent is comparable to the similar sqft apartments. There are certain trade offs that are going to be pros or cons depending on individual preferences. ie. no community pool with the duplex, but you do get a garage. No community gym with the duplex, but you do get vaulted ceilings, a basement, and a fireplace.
I'd like to know what you think. What are your thoughts on the property being surrounded by apartment communities? What are your concerns overall?

Thanks in advance. -Q

Thanks @Kelli Huang and @Dave Foster for the replies. BRRRR is the strategy we're after. So the affirmation is good to hear.
Additionally, awesome points on the primary residence exclusion. My friend/mentor had been recently talking to me about capital gains and related exclusions. I imagine we might leverage that in the future!
With the SFR I am referencing here, we might end up moving back to occupy it in the future once we have kids. So I don't realistically see us selling it. It's in a highly sought after area and is one of only a handful of newer builds amidst a sea of much older homes.
Thanks for all of the great input!
-Q

Thanks for the reply, Tom. With option 1. While renting out the SFR we would do a 203(k) loan and occupy one out of the four units in the 4plex.