All Forum Posts by: Tony Lin

People who buy for appreciation. Or put in so much downpayment it eventually cashflows. 

You're definitely on the right track planning to make your equity work for you. With that amount you could easily get into a small apartment by doing a 1031 exchange. Searching/acquiring the right apartment will take time so keep that in mind. 

I think it's a good time to take your winnings in CA and start looking out of state. We're already starting to see a softness in Cali with Chinese investors scaling back on the purchases. With the recent CA rent advocacy it's only a matter of time these regulations extend beyond apartments. You can find much better investments out of state. 

Dallas / Fort worth have been consistently strong in the past decade or so. Population and jobs are growing at about 3% a year with 100k new residents a year. Many people from California and New York are moving over there as cost of living is relatively cheap compared to the coastal cities. Strong economy is also attracting American Airlines to build another terminal on the already sprawling DFW airport. Invest in areas that have growth and diversified economy. 

I skipped SFH and went straight to Multifamily. There are so many more advantages multifamily have over SFH. Your $50k can be used to participate passively in 1 or 2 multifamily syndication deals. This allows you to learn how apartments are operated, have experience to write on your real estate resume, and free up your time to make additional income to do more investments in the future.

That's a tough one. I would offer maybe NOI based on 10% occupancy based on market rate? Considering the amount of rehab that you have to do, $$ owed to city, possible liens, all new marketing, concessions to get it occupied again, etc. Most likely you won't be able get any reasonable loan so you may have to bring the cash.

To be honest if you have to ask this question it means you're probably not ready to take on a big project like this... Especially when it's out of state for you. It's a lot of risk. 

Agree with what others have said, you need more funds than what you currently have. More than anything, you need to have enough buffer for your personal finance. Secure yourself with a 3-month living expense back up fund before trying to risk funds (which may end up being a lot more than what cash you currently have). 

I recommend that you only use what money you can afford to lose, not what you have to live on. A downturn may happen in the near future and it would really open up a can of whoop *** on investors who are over extended. Play it safe and be patient. 

Thanks for the suggestion folks. I'll follow up on the leads. 

Get in touch with property management companies in the area. They do this everyday and will know the real conditions we’ll. 

I hear you, that’s why I’ve been investing out of state in multifamily assets. Can’t cashflow where we live. 

Approximately 8% of the return is from cashflow, with the rest coming from forced appreciation. 

Freddie SBL would be a good choice. Agency have been dropping their spread lately and have competitive rates. They’re also no recourse, offer interest only, and can do supplementals.