All Forum Posts by: Pavan K.

Just got of a call with the Builder's lender financing team. This is for a new construction SFR (expected completion - Sep 2024) which will be used as Investment Property.

That's the rate they quoted (7.5% with 2.25 potins ) as of  today with 25% down , with 800 Credit score, Zero Debt.  Phew !!  I mean , Is there anything at tall  i could do to get better rates?  More downpayment  does not change the rate as well (I did ask .)

Sure ,Will be shopping for better rates ,when we get close to closing .Was hoping i would be in the 6.5% range with no Points. 

Thank  You Amanda. We are awaiting Loan approval as of today. Its a new build and wont be available for atleast 5-6 months . Nervous and excited :)

Quote from @John Morgan:

@Rahul Tripati

Bad approach. Put 20% down on as many cash flowing SFR in C+ class hoods as you can find. Leverage your way to wealth. Put equity to use and create generational wealth. Trust me. You'll thank me in 10 years.

Thank You @John Morgan. I have changed my approach a bit like you said.

1. Tap into the Equity of my mortgage free home.Use HELOC to fund the downpayment .

2. Network to find a CPA who is good with Real estate investments and a Real estate Agent( considering my inexperience,untill I gain sufficient knowledge and confidence).

Im still paranoid about investing into c+ class hoods due to Tenant screening ,which I have no knowledge of.

May be I go with Class A neighborhood for this one SFR to be in a safe zone ,in the meantime ,gain knowledge/experience to know what it takes on how to exclude bad tenants

Quote from @Chris Seveney:

@Rahul Tripati

I have acquired properties with little to no cash flow and they end up doing well

Question is you are going to put $150,000 down and then cost you at a min $1,000 a month or $12k per year. Will that home appreciate more than 2% per year or what you are paying to make up some return on your $150k?

Also are you better off investing it elsewhere? There are a lot of opportunities out there which could be more passive where you could get $12-$15k/yr cash flow with your $150k and not have to continue to come out of pocket.

Food for thought.

Thank You Chris ! 

The only reason to consider going the route I mentioned is because I don't have prior experience nor I have a circle who can guide/advise me in dealing with Real Estate investments .
Since I can afford the SFH at this point is what pushing me to even consider the purchase.
Appreciation - Is a wait and watch game , unfortunately I don't have an answer to that.

May I know, what would be a better approach to make use of the capital?

New to RE investment and my Goal is Asset Appreciation.

Personal info : No debts , Emergency Funds in HYSA, paid off primary home valued at roughly 700K in today's market. Married and in  mid 40's

Came across a Single Family Residence in a developing community which is roughly at 600k$. I can put down 25% considering this will be a secondary home.

Reason for considering SFH - No prior RE experience, Tenant Class, Newer construction - no existing problems,newer townhomes are priced starting at 420k$'s ( higher HOA and still has a shared wall)

Looking at 4000$ max as monthly expense( mortgage+insurance+HOA+ Property Tax ).I say expense , assuming the residence is not occupied immediately (Vacancy) . I totally understand there won't be a positive cash flow ,infact Zero Cash flow which could last for months. If at all rented , expecting it to be 3000$ / month ,based on Zillow stats around the same size property/ location.

Pretty sure, this is not a best approach. But would you still recommend the approach? 

Hello RE community. I'm a newbie trying to learn about RE investing. Have been reading various forums on this site, information shared/ discussed is absolutely amazing.