All Forum Posts by: Steven Holiday

Thanks.  

Sorry about that.  

:)  

Good Morning.  

1.  Thanks for being willing to serve.  

2.  Thirty years from now, long after the money from the sale has been reinvested, others in your situation have said something like, "I should have never let that property go."  

That being said, someone in the 80's decided, "The values in Detroit have to go up soon...", so we never know the future, but the odds are strong.  

As someone who has both cashed out and held, depending on the situation, the questions I would ask  are...

How well could you manage one of those "Oh Crap" issues like a roof, storm, A/C, etc.  Only you can make those assessments and decide if you can sleep at night with those answers.  

Is the cash flow, or lack of, worth the realistic likelihood that San Diego property is going to continue to appreciate at the levels observed over the last decades?  

Finally, none of these answers matter at all if you don't have full confidence in a local property manager; maybe even a couple companies in case one let's you down.  You might invest an afternoon or two to meet with, check references of a few companies.  Chat with them about your situation.  They probably have current clients in very similar situations.  They will also be able to give you actual data on the rents they are currently collecting and the waiting lists for properties just like yours.  

Best of Luck on this next chapter.  

If you google Paul Moore (Ask me Anything), he has a one-hour call-in most weekends on Facebook, YouTube, Insta and they are very valuable on all things real estate.  Also recommend ...

The Millionaire Real Estate Investor Paperback – April 7, 2005

The audio book is free on YouTube and worth its weight in gold.  Congratulations on starting out as a College Grad with zero debt and a small sum saved up!  

Well-done!  

I live in Visalia.  I'd be happy to show you around.  There is a buying frenzy right now, but a correction is coming.  There are already signs.  Good Luck!  

Welcome to the Central Valley.  

I live in Visalia and know a little about several towns in the North Valley.  As for where the best areas are, it kind of depends on the parameter of what you are looking for.  If you're looking for A-Class, there are several multi-units coming on the scene as new construction, but there are several in more established areas too.  If you're looking more in the C/D range, there are plenty of those as well.  

Multi-family is not really my area, but I do know general areas and I'd be happy to drop you a note if I see any new signage.  

I know nothing about what they're doing, but if I had to choose some place that really pops, at least from the observer level, I'd check out, "Renew Visalia".  I don't think they're selling and I know nothing of their management, but they're in my area and it looks really impressive.  

You also might check out Summerfield and Ville Monte.  I was out that way doing some other business and I was impressed with their layout.  All three I would guess are in the B+ to A range.  

If you're looking for rougher areas, there's at least one small unit that went up for sale recently, but I'm not sure if it's still available.  I hope this helps, Chef.  Good Luck and Congratulations!  

Hello Again.

Thanks to everyone who responded. It is appreciated.

My broker is out for a well-earned, four-day weekend so I am still not informed as to his intention to look to high up’s for any flexibility on costs, deposits, etc.

As for the numbers, let me list some of them here and see what you all think?

Question 1?

At least one response suggested that the appraisal “might” be used by another lender. This would save time and money, but is this wishful thinking or a realistic possibility?

Question 2?

When someone with experience looks at these numbers, would it seem plausible that a better deal is out there?

With costs of Property Manager, routine expenses, we’re losing about twenty bucks a month (which is a huge improvement over previous years) not including tax returns, etc.

Would smart thinking be to pay down the debt and wait for rent increases?

Go after cashflow today, even if it adds leverage to the back end?

Join everyone else fleeing California and buy in Cleveland, KC, Indy, Belize?

Thanks again Everyone.

sh

8.22.2019

Property Estimated Value 215000oo

Loan Amt

159500 @ 4.875%

Estimated Total Payment…………1023oo (Taxes, Insurance, etc.)

10.16.2019

Property APPRAISED Value 205000oo

Loan Amt

160400oo @ 4.875%

Estimated Total Payment…………1040.92 (Taxes, Insurance, etc.)

10.18.2019

Property APPRAISED Value 205000oo

Loan Amt

159600oo @ 5.375%

Estimated Total Payment…………1085.78 (Taxes, Insurance, etc.)

Closing Costs: 8266.39

Current Mortgage

1100oo/mo

Property Mgt 120oo

Rent Received 1200oo/mo

Latest Appraisal is 1300oo is realistic, but rents seem to be heading downward and we have a good renter.

Cash Flow… -20oo/month minus any expenses, which so far, have been minimal.

Remaining on the Note…152,184oo @ 6.o%

Any Thoughts?

Thanks again everyone.

Hello Again.

Thanks to everyone who responded. It is appreciated.

My broker is out for a well-earned, four-day weekend so I am still not informed as to his intention to look to high up’s for any flexibility on costs, deposits, etc.

As for the numbers, let me list some of them here and see what you all think?

Question 1?

At least one response suggested that the appraisal “might” be used by another lender. This would save time and money, but is this wishful thinking or a realistic possibility?

Question 2?

When someone with experience looks at these numbers, would it seem plausible that a better deal is out there?

With costs of Property Manager, routine expenses, we’re losing about twenty bucks a month (which is a huge improvement over previous years) not including tax returns, etc.

Would smart thinking be to pay down the debt and wait for rent increases?

Go after cash flow today, even if it adds leverage to the back end?

Join everyone else fleeing California and buy in Cleveland, KC, Indy, Belize?

Thanks again Everyone.

sh

8.22.2019

Property Estimated Value 215000oo

Loan Amt

159500 @ 4.875%

Estimated Total Payment…………1023oo (Taxes, Insurance, etc.)

10.16.2019

Property APPRAISED Value 205000oo

Loan Amt

160400oo @ 4.875%

Estimated Total Payment…………1040.92 (Taxes, Insurance, etc.)

10.18.2019

Property APPRAISED Value 205000oo

Loan Amt

159600oo @ 5.375%

Estimated Total Payment…………1085.78 (Taxes, Insurance, etc.)

Closing Costs: 8266.39

Current Mortgage

1100oo/mo

Property Mgt 120oo

Rent Received 1200oo/mo

Latest Appraisal is 1300oo is realistic, but rents seem to be heading downward and we have a good renter.

Cash Flow… -20oo/month minus any expenses, which so far, have been minimal.

Remaining on the Note…152,184oo @ 6.o%

Any Thoughts?

Thanks again everyone.

Hello BP! I have an issue I could use some advice on. Smart money about a year ago was that the rates were going anywhere but down. So about September of last year, my wife and I refi'ed our Single Family Rental at 6%. In August of this year, when the rates were roughly half that, I spent about 90 minutes with our current big bank lender. The guys who took the call assured me that he could probably get me like 60oo savings per month (the property appraised at 205k a year ago). He wanted a 500oo non-refundable deposit to begin the process but assured me that cash would go into the loan unless we backed out. After months of delays, errors on their part, the appraisal came back last week at 205k (the exact number from last year). With those numbers, he says that if we put thousands on the back end of the loan, he might be able to get us 10oo a month savings. Now the fine print on the contracts say something like, not accepting their offer will forfeit the deposit. So my question is, are they proceeding in fair practice? Is there any recourse for me? Am I just conned out of the 500oo and the wasted wait time? If I just swallow the 500oo bait n’ switch, am I wasting my time looking into another lender? Sorry in advance for the confusing write up. I hope someone can make sense of it. This isn't my day job! Thanks everybody.

Hello BP! I have an issue I could use some advice on. Smart money about a year ago was that the rates were going anywhere but down. So about September of last year, my wife and I refi'ed our Single Family Rental at 6%. In August of this year, when the rates were roughly half that, I spent about 90 minutes with our current big bank lender. The guys who took the call assured me that he could probably get me like 60oo savings per month (the property appraised at 205k a year ago). He wanted a 500oo non-refundable deposit to begin the process but assured me that cash would go into the loan unless we backed out. After months of delays, errors on their part, the appraisal came back last week at 205k (the exact number from last year). With those numbers, he says that if we put thousands on the back end of the loan, he might be able to get us 10oo a month savings. Now the fine print on the contracts say something like, not accepting their offer will forfeit the deposit. So my question is, are they proceeding in fair practice? Is there any recourse for me? Am I just conned out of the 500oo and the wasted wait time? If I just swallow the 500oo bait n’ switch, am I wasting my time looking into another lender? Sorry in advance for the confusing write up. I hope someone can make sense of it. This isn't my day job! Thanks everybody.

If you aren't interested in providing the information for investors/lenders to analyze, and you and your wife like the neighborhood, you might consider knocking on doors, dropping postcards, or visiting local coffee shops to see if there's interest in partnership.  Also, if you call the school, they will might you their expansion plans.  They have interest in building strong relationships with their community.  Just a few thoughts.  Good Luck.