All Forum Posts by: Ruben Parra

@Kurt K.

Welcome to the site! I'm just down the road from you in Lake Forest and have similar investing goals as described in your intro. I'm a newbie to the site myself and would agree with @Joe Homs to come checkout the Lake Forest meetup. I attended my first one this month. 

@Aaron Mazzrillo

Just to play devil's advocate.....don't you think there are many experienced landlords in CA that "don't suck", but decide to go out of sate because they look at numbers from a cashflow investor point of view? I know many people in BP advocate focusing on cashflow and only consider appreciation to be icing on the cake. And they may find that even if they are the best landlord in the history of California (but not the best buyer/investor), they are barely cashflowing. That same person may find that if they invested out of state with exactly the same system, with the only difference being paying Property Management service (10%), their cashflow would be significantly higher? Without considering appreciation, they would get a better deal with less out of pocket.

But I'm a number's guy.. so I might be missing a bigger picture in all of this.

@Chris Clothier

I agree with Jay... great post and great advice!  

I have been reaching out to some member here on BP and have many options available. Trying my best to get research done and all the due diligence that comes along with it. I might be getting some of the "paralysis by analysis" syndrome however, so I need to watch out for that as well.

@Orion Walker

No problem... I joined this community to learn from others and their experiences. I had just about ruled out any type of investment in CA but looking at comments here, it seems like there are still opportunities in the golden state. I'm still leaning towards out of state so that I can "get my feet wet" with less out of pocket. Like you mentioned, just need to get out there and get going.

One more question about a first loan. Would it be advisable to start out with one of the bigger lending institutions or banks for the first one? Or would it be better to go to a smaller banking institution and develop a relationship with the intent of getting portfolio loans with them in the future (once I get to 4 rentals)? 

@Doug McLeod  you make a very good point on the condition of the property being a problem for conventional loans. Being my first venture into buy and hold, I'm looking for something that needs as little rehab work as possible. The hard part will be finding a good deal!

I understand what you are saying about the hard money purchase, rehab, and refinance for less out of pocket. Sounds like a good strategy to keep enough funds for a 2nd property investment.

@Jerry Padilla Is the PMI on a 15% calculated the same way as on a loan for a Primary Residence?

Hi BP!

What would you recommend in terms of financing for a first time rental property investment (buy and hold) and looking to purchase a second rental the year after?

Situation is as follows: funds of 25% purchase price available with only another 5K-10K more for possible rehab, Credit 770+ score, stable salary with no debt, living expenses 50% of net income . No existing equity or mortgage (has not purchased primary residence) and will not be living in the rental.

Would a safe bet be to get into the first rental with a conventional loan due to the existing interest rates? Would it make any sense to look into any other forms of financing or get creative? 

@William Hochstedler

Thanks for the feedback on the Logan area. I'm looking to cash-flow through multiple buy and holds so not looking at get-rich-quick strategies. 

I'll be in the Layton/Ogden area sometime in April. Maybe you'll have your office open by then and we can talk about some properties?

Hey @Andy Mirza .. Ladera is a great community! It was only a few months ago that I was considering buying a place to live in, and was looking into Ladera or Rancho Santa Margarita. I would definitely look at either of those as ideal places to raise a family. That being said, since I'm still single I would hate to pay the incredibly high HOA fees in Ladera without taking advantage of the waterpark, playgrounds, etc. I bet you kids love all of that though!

I kind of differ in the sentiment of having high prices and low rates as the ideal time to buy. I would much rather pay high interest on a bargain price, and refinance at a lower rate with an appreciated value down the road. I almost pulled the trigger on a $490K SFR in RSM with the though of house-hacking. Even so, my disposable income would be below a level I'm comfortable with.

I  have a very nice situation going for me, in that I currently split the rent, and my share is only about 15% of my take-home pay. That situation my change in the next year or so, but being that I am debt free, I could still manage to both have enough to invest in RE and save up for a down payment when the time (or price) is right to buy my home :)