All Forum Posts by: Robert Reynolds

Hi Alex, I have several clients trying to flip in SoCal, and it really depends on your abilities and how you are financing the deals. My cash clients can have tighter margins, because they have less overhead. Also those who can subcontract everything out and do some work themselves had found success. My advice is to usually try and do a live in flip if possible, and that should help eliminate some risk and give you the best financing available. Please reach out and I'd love to hear more about your goals and strategy. 

Hi Matt, 

Wish we had met sooner, but I love what you are already doing. I did something similar in LA, and bought a 3/1 and added another bedroom and bathroom. I wish I did a cash out refi when rates were lower, but settled for a heloc to get equity out of my house and am currently building an adu to increase my properties value even more and help pay my mortgage with the future rents. You will see that appreciation out here is incredible, and my advice is to keep doing what you are doing every 2-3 years and hold onto the properties as you go. Before you know it you will have a portfolio of very expensive properties and you can do whatever you want with the equity and cashflow in the future. Obviously the cashflow will take a couple to a few years to get in LA, but the long term appreciation will more than likely trump any cashflow out of state. It's just one option, and I know you will hear a lot of people say look out of state for cash flow. Just wanted to share my opinion. 

Yeah most people assume FHA stands for First Time Home Buying, but it isn't. I would reach out to an investor friendly lender, because there are some downsides of using it on your first home purchase, when you are thinking about buying another close by in the near future and using the rental income from that home to help qualify for the next.

 Hi David, 

Yes, you need to contact a lender. But you can play around with a mortgage calculator and put in a home purchase price, 3.5% down, a rate around 6% and see what payment it gives you. I'd include about 1.3% for property tax and about $1,200 for home insurance and some more for PMI. Your goal should be to get to about 50% of what your gross monthly income is and that should be about where you can qualify for. That's a very rough number, but can help give you an idea. Might be a lot easier to talk to a lender. I personally use the Mortgage+ app

I recently had a client use a loan product that was a conventional 3% down, no PMI, with a great rate. I would look into similar programs if I were you. Take advantage of banks being a little desperate right now to lend out, since demand is lower. Unfortunately out here in LA supply is also low, so prices have stayed put and even slightly increased as of late. Let me know if you need anything.

Hi Joe, 

You are on the right track. House Hacking is the best way to get started. You can use low money down loan programs (3% Conventional/3.5% FHA) to get into your first home and start building equity. This first home will be the foundation for the rest of your purchases. Whether you sell, hold and pull money out, it will definitely do you well. I love that you are 23 and looking to get started. I bought my first house at 23 and it helped me get into my next house which has really appreciated like crazy in this SoCal market in under 10 years. I'd love to connect and see how I can help.

Hi Jasper, 

My advice is to house hack as soon as you can. Buy a 2 or 3 bedroom house or condo (depending on approval and location) and rent out the extra rooms. Once it can pay for itself, look to buy another. I've had clients recently use great first time home buying programs that often will be 3% down, no pmi, low rates and credits for closing costs. We can then negotiate further credits for closing costs to eliminate all closing costs and you will just be 3% out of pocket. Then on your next buy you can use the FHA loan at 3.5% down. You will have just bought two homes using 6.5% down. Hit me up if you have any questions or need any guidance. My team will be hosting a first time home buyers meetup with David Greene coming up and I hope to see you there.

Relaxed Environment to meet up with other investors or first time buyers looking to invest in real estate. The main topic of discussion will be ADU's, with special guest Patricia Denise who owns an ADU design company and is a wealth of knowledge when it comes to ADU. This is a monthly meetup where we are building community around the common interest of real estate investing. Please register on the Meetup.com page or reach out to me (310-720-1057).

https://www.meetup.com/the-dav...

Have you looked into mid-term renting it? 30 day + furnished stays could help you cashflow. There's a lot to consider when deciding to sell vs rent out. Would love to help you run the numbers if you need help. Just reach out!

Have you looked into mid-term renting it? 30 day + furnished stays could help you cashflow. There's a lot to consider when deciding to sell vs rent out. Would love to help you run the numbers if you need help. Just reach out!

Relaxed atmosphere talking all things real estate. Focusing on ADU's, but free discussion about all things real estate.