All Forum Posts by: Steven W.

Hey @Wayne Felton and @Jeremie Rykner  ,

Just saw this posting now. I'm an out of state investor who is interested in Jax as well. I visited it last month and was intrigued by the market. FL property taxes definitely take a bite out of an out of state investor, but there seems to be quite a few properties where the numbers would work.

As an out of stater, the challenge is finding properties that don't need a lot of work and/or finding reliable folks to help doing some rehab. 

I like the Murray Hill area and am now looking into Arlington as well.

steven

@Troy Fisher I had a RE agent share a property like this in W. Oakland with me. The guy didn't have the actual rents right--he mixed up current rents with "market" rents, which of course made the price way off base.

I guess if you can hold on for long enough and/or drive the price down, it might be worth it, though with rising rental prices in the bay area, it would be hard if not impossible to get tenants to leave without some seriously huge incentives!

Steven

@Chad U. I think that you're right, perhaps unless you are able to buy a price way under market, and the cheap money makes it easier to purchase and rehab.

@Shawn Mcenteer You're right--you might have years of high rates, but if the numbers work the same for you (with high rates, you'll be getting adequate cash flow, or no investor would buy it), then sticking it out with high rates is OK and getting a chance to refi is just a bonus!

Steven

I know that the subject line sounds ridiculous, but hear me out. After having talked to lots of turnkey sellers over the last week or so, it's clear that they price their properties at a sweet spot that will allow buyers to earn say $250-$350 cash flow per month (often, it's not clear whether that figure takes into account repairs and vacancies). So, I assume they take their purchase price, add the rehab costs, and then price the turnkey to fit into that paradigm, which of course depends on the interest rate that an investor would pay.

Five years ago, I bought some turnkey properties when rates were at 6.875 to 7 percent. Not as attractive, one might think, but the cost of the property to the investor factored in the higher interest rate. A couple of years later, I was able to refi and thus reap the benefits of the lower interest rates (instead of the turnkey operator benefiting from them).

I'm pretty doubtful that over time, folks are going to be able to refi a 4.25% loan, since the chances of rates dropping 1-2% seem at least to be slim and none.

So, does any of this make sense? 

Steven

@Jeff Pollack I think that's a great breakdown of what to look for in providers. Any extra $50-100 a month to me won't make a difference, but if I have a property with little chance of appreciation, that doesn't make sense to me.

Steven

HI @Dawn Anastasi My understanding would be that you wouldn't incur taxes on the sale until you took distributions from your IRA--any gains would just stay in your 401K until you start to take money out upon hitting retirement age.

Steven

@Arlen Chou Great job on this purchase--I met up with @J. Martin a couple of days ago for lunch, and he bragged about your conquest.

I'm sorry that I didn't get a chance to meet you at last night's meet-up. It was a good time had by all and a great chance for me to meet some nice folks!

I'm looking forward to learning more about the possibilities in Oakland and beyond.

Steven

Hi @Matt M. , @Bill S. and any others who would care to chime in. Are there any private lenders out there who would allow me to do either a cash out refi or a HELOC on this property? Since I have more than 4 investment properties, Fannie and Freddie won't allow for that.

I'd love to have at least some of that equity working for me without having to sell the property.

Any suggestions? I'm not looking to jump on this right away, but I'd like to find out what's possible.

Steven

Hi @Jason Yee and welcome to BP. There just happens to be a meet up of like minded folk at the Golden Gate Tap Room tonight starting at 6:10.

Here's the link:

http://www.meetup.com/SF-Bay-Area-Real-Estate-Inve...

Steven