All Forum Posts by: Sathish Sekar

Alex, I was in a similar situation after a refinance. If you are a beginner landlord, I'd recommend looking at properties with tenants already in place. Perhaps a 3 or 4 units property with some existing tenants. See if you can buy the property at a slight discount due to deferred maintenance or lack of cosmetic updates. 

This deal likely won't be a home run. But buying a property with existing tenants can limit your risk. At least you'll have some cash flow from day 1. 

Congrats on having such high ambitions. I would recommend you focus on getting the best paying day job you can. A job that can pay your daily expenses and allow you to accumulate cash. If you plan on getting property loans, you need some regular employment. 

You can also partner with experienced pros to purchase your first few properties. Either way, I'd recommend you focus on getting a solid day job so your daily expenses are taken care of. Anything you earn from real estate can be a bonus for you. 

 You may be in a favorable position. If you are comfortable with the appraised value, I'd recommend doing a refinance. Perhaps that way you can unlock some more cash to get your next investment property. 

Short answer: No, keep paying your monthly mortgage payment. and invest your $82k in another property

I am not familiar with your specific real estate market. So I don't know what type of property you can buy with the $82k as a down payment. In Chicago, that $82k could get you a fourplex in some parts of the city. Maybe not so in Northern California. 

Since your mortgage is at such a low rate (3.75%), there isn't much of an interest savings to paying of the loan early. 

If you can qualify, I'd recommend trying a regular loan first. The terms and monthly payment will be better for you. (especially as you will be an owner-occupant)

Hard money is a good back up plan, but the monthly payment will be a lot higher. 

Faisal, congratulations on the 45 units! However I imagine it must be a challenge at times. As you found out with your stealing assistant. 

Your construction experience will be invaluable as you determine what repairs to perform on properties. You will be able to buy properties that other investors cannot buy because of your repair knowledge. 

if you're starting, I would recommend being around other investors. Find a local meet up of investors and go network. 

Use the Google Drive suite of software products (docs, spreadsheets, forms, maps, calendar). These are all free and have robust functionality. They are cloud based so you can access them anywhere with an internet connection (including smartphone). 

If you are organized when you set this up, Google drive will work just fine. Once you obtain more than 10 units in your portfolio you may need to switch to a dedicated property management software. 

If you found an off market property, you don't owe the realtor anything. "off market" means it is not on the official marketplace facilitated by real estate agents. 

That being said, you should treat your realtor with respect. If the realtor shows you a property you want, you should use them to submit the offer. Otherwise if you find your own deal then there is no need to use the realtor. 

Most realtors understand this dynamic. Plus you may be able to use your realtor later on. Once you repair your off-market property you can list it with that realtor. 

I assume you attorney is familiar with city zoning matters. If not, I would ask him for a referral to a zoning attorney. If your project is compliant with the current zoning, you shouldn't need a variance. And you would likely only need an approved building permit. 

(Zoning variance is when you need to apply to change the zoning district. There's community meetings and a lot of bureaucracy to do this). 

I don't have specific experience with the situation you are currently in. But I hope these thoughts help.