All Forum Posts by: William Sing

Hey Jake!

I think that this can be highly dependent on your local market. Here are some broader points to consider and I'll take my area for example. 

- Demand - The five major areas to look at are House Prices, Number of Qualified Buyers, Housing Alternatives, Consumer Preference, and Consumer expectations. 

- Supply - Three major areas where you get supply is New Construction, REO/Distress Properties, and current home sellers.

You can skim through the video to get higher level points but this is how you can analyze your market a bit more. One of the things to note is that we have strong fundamentals in demand and supply. A lot of the 2008 recession was propped up by poor lending standards where they qualified anyone with a heartbeat. That is NOT the case right now. When people can't buy they rent and if the rental supply is gobbled up then you will have rent increases. Even with the rent control in Oregon, we can cap out at 7%+CPI (Consumer Price Index) and we still are seeing a lot of rent increases. The rent cap helps people who are here already but nothing for anyone who comes in. 

That is just my two cents but I'd start there and understand your area from there and look at historical trends. 

Hey Antonio! With multi-family, you can expand your search. I sometimes have to go 3-5 miles outside of where the subject property is to find comps. This is what appraisers will do to. Try to make sure they are in similar types of neighborhoods. Hope that helps!

Hey Chris! With the 203k loan you can wrap up the mortgage. 

Here is a post that you can go to that will give you a bit more of an idea - https://www.biggerpockets.com/...

I'd direct you to @Julee Felsman post where she says:

"Conventional = Fannie Mae HomeStyle. HomeReady is FannieMae program that can be combined with HomeReady and offers certain benefits for owner-occupied buyers who's qualifying income is equal to or less than 80% of Area Median Income (LOOK-UP TOOL HERE).

FHA = 203k.

They both allow you to wrap construction costs into the loan, but your only option will be a Fannie Mae HomeStyle (non-HomeReady) renovation loan on a single-family residence."

She has some good info on this post as well that might be helpful for you as well. 

Hey Eric! I have found it harder to find a seller in my market, Portland, OR, to be open to doing this. These loans typically have a bit more upfront cost and in competitive markets are not as desirable. 

Here is a post where we talked a bit more about your options. I'd reach out to Julee if you have further questions https://www.biggerpockets.com/...

Hope this helps!

Nice Job! This market has certainly been interesting, especially in that 650k-950k price point. 

Hey Steven! How you do things can come down to personal preference, but it depends on what you are doing with how you want to route things through your accounting software. I have everything go to a checking account and then deposit things into the a savings account for the capex/opex. This allows me to separate out what I should be saving. I also recommend you have a some sort of software like quickbooks to get your actual P&L (Profit and Loss) statements. This will help with determining what your actual cashflow is for the year and will help banks understand your financials if you ever need to. ALWAYS keep the checking account separate from your personal account and create a checking account for each property. This helps out tremendously for tax professionals and keeps things clean if you ever get audited. 

As for taking it out, you can pay yourself a salary but just know that you will need to pay taxes on it. You can also do an owner's draw but these are more for bigger payments (quarterly, semi-annual, annual).

P.S. I am NOT an accountant

Hey Thomas! Congrats on saving as much as you have!

When it comes to pulling out the stock portfolio, things can be a bit tricky, especially now. Due to the rising inflation, your cash will be losing value and on top of that, the interest rates will be going up per the federal reserve. There is a chance that by the time you are ready though, the market changes and you sell lower. Just know that you have to understand your risk profile to figure out what is best for you. For me, if I know that I need the money within the next 6 months I would probably pull it out since I would need that cash if my portfolio dropped 20-30%. The longer the timeframe I need the money, the more volatile loss/gains I can handle. This dips more into investment philosophy but thought it might help. 

I would probably reach out to an agent in the area and see what is possible with that amount of cash. This will give you a better idea of what you need to save up in order to actually get what you are wanting. You can also see if there are any programs near you that would offer a matching program. Here in Oregon, we have a program where they will match you up to 6k but you need to have the money in the account for 6+ months and go through home education. Might be worth it though. Let me know if you need any recommendations for agents in the Austin/San Antonio area :)

Hey Sergio, I'd call a few more banks. Some local credit unions might be a bit better but usually, you can get a HELOC on investment property but you only usually get about 70% LTV vs 90+% on a primary.

I'd check out https://www.cobaltcpa.com/serv... Adam and Bryant are pretty great and has a lot of connections to the portland area as well.  

Hey Jeff! If you have worked with a title company they are usually able to pull these records. Not sure if you went that way or if you have a good relationship with a title company. If you work with an agent, they are usually able to work with the title company to get a trio/ownership history.