All Forum Posts by: Todd Kalsey

@Josh Mitchell that's what I was thinking in much more vague terms.  I appreciate your perspective and info!!!  I think I can find something that'll work in my area.  Hopefully I can get a "win-win" with this idea.  Thanks a ton for the feedback Josh!

Hello fellow BPers!   If I may, let me give you the "lay of the land" before posing my question.

My wife and I currently are looking to sell our primary residence, a small SF 2/1 in the spring.  We also own another SF 2/1 that we've rented out for the last 7 years and it's a solid cash flow property. We definitely want to expand our portfolio in the future, but are in need of more space due to kids.  We need more space ASAP...but would like to "hack" the opportunity for a few reasons.  So.... 

We've been contemplating making our next move as purchasing a multi-family (duplex, fourplex) and moving in for a year. The primary reason being that we'd do an FHA loan and also that it would alleviate the need to sell the following year when we look to purchase our "forever" home. Our rationale is:

1. Save a bit of $ of the next year with tenant(s) helping to pay mortgage.  Build up a bit more for our down payment on our primary residence.

2. "House Hack" to pick up another property for our portfolio

3. When looking for our "forever" home, we can look w/o have the pressure of having to unload a home.

Any thoughts?  Has anyone done this?   Will picking up the extra rental property and residing in it negatively impact our ability for the next mortgage?   (*I'm waiting on a call back from our mortgage broker)

I would love to execute the strategy but don't want it to hinder the possibility so us qualifying.  Appreciate any insights!    Thanks BP. 

As I continue my "newbie" education I was reading Larry Loftis'  book on Multi-family properties.
I'm part way through but came across him discussing GRM and was curious what some current owners
had for GRMs on their current multifamily or what they were seeing when perusing the market for properties?   Does anyone use this number for a solid measurable when evaluating a property?  Thanks!   

Welcome @Matt Hall!  BP is a great place with so many helpful people, both local and nation wide.
I've been in your shoes and am still a "newbie" as I'm only a few months into my education here.

I too am looking to head into the small multifamily market and saw the article on the proposed Silverton development.  It'll be interesting to monitor.  

@Alex Brookbank couldn't agree more on the Kroger development.  Yes, I like some of the retail going in there but the layout and ease of in/out is annoying.  What actually sparked this post was a story I saw on a proposed development at Taylor & Madison (next to the church), trying to cram an apartment complex into the small lot where the vacant bank sits.  It just made me think, "really?!".  The area is hot, but that idea seemed crazy.   

@Scott Trench  I think you hit on a great point and it'll be interesting to see how things play out during the 3-5 years once all of the phases of development are up and running in my area.  Thanks for the input and I'll definitely be taking a look and see how things are progressing over time.  Great insight and thank you!

@Julie O. wow...thanks for the great info on the trend in your area! I am thinking this issue may creep into my area as well in the future.  I figure this isn't a huge issue but the "cost of doing business" in that particular area.  Thanks for the feedback...quite helpful!

@Tony Keri yes...Oakley.  

@Michael Henry thank you.  I've seen too many people jump in before gaining some base knowledge.  Fellow BPers have been invaluable and so helpful.  I truly appreciate the insight and hopefully can repay down the line to others!   Thanks!

@Joshua Sclafani your "viable alternative" is exactly what I was thinking.  While you have that core group that want new, trendy, no maintenance, I think there will always be a market for those who want some space but still want to be in the area.  Thanks for the feedback!

@Jon Q. thank you for the perspective. I understand where you're coming from. The area is an older community with a mixture of SFH, SFR, MF and larger Complexes. There have been 3 major developments (easily 100+ units each) that have gone up over the last 2-3 years with more phases rolling out soon. It'll be interesting to see how this plays out. Thanks for the input!

 Brian...none yet.  Probably a year or so away.  Right now trying to educate myself and save for some capital.