All Forum Posts by: Tony Mai

For most lenders if you don't qualify for fha or can't get an fha, you will have to do 25% down conventional investments home loan.

Jason Munger thank you for great insight. I totally agree. I dug into the appraisals more and the seller had an appraisal done 2 years earlier which was 30k higher so I can see why he didn't sell but I couldn't see myself paying 20k over what I could sell it for even if it cash flowed well for 4 years. It basically becomes a wash and higher risk. So I walked away. I offered the appraised price but the seller refused. I do like the Tomball area but as a residential rental it doesn't make sense.

I agree with Joann it really depends what you are trying to buy.

Congrats on your success! Was this in KC MO? I see your from West Covina,CA? You must live in the Midwest now?

Hi Mike I have lived in the San Fernando Valley for 30years it's my farm area. I grew up here and I can tell you, it's always expensive. My advice is to buy if you can afford it. LA is a hot market and will always be a hot market. Another factor that's driving prices up is foreign investor and all cash offers! There is a lot of money coming from other places into LA because of the stability and the long term market appreciation. So invest if you can, I believe there will be a correction/downturn in the future at some point but the question is When? And How much?

Jeff B. Why are sellers asking so much for their properties when the rents don't support their asking price? Most sellers in Orange County use pro forma numbers to determine selling price and lots of renters are long term renters so the numbers are low. I do see what you are saying, it is less risk to use current rents to calculate actual cap rates. With cap rates so low is there even room for more appreciation in Orange County? All the cash flows come out negative. And I can't see people being able to afford more to live in Orange County. It is very desirable to live here but you would need lots of money.

Jeff B. Hey so I'm looking at two properties, one is in east corona and the second is in Orange however the orange property is priced significantly high cap rate around 4.1 but proforma 4.5 The corona one is much better 4.5 proforma 5 The question is which would be better? Corona is less desirable than orange but the numbers are better for the corona one... Any insight on this one?

Vivek Khoche this was what I was thinking myself

Kevin Coggins it's located in Tomball close to the woodlands

Zach Quick yea so the deal is 2700 for 2 years,2800 for 1 and 2900 for the last year after that I have no exit strategy other than rent if for market rate with is going to around 1800 or sell which will cost fees, basically 1/2 of what I made do in a sense I may come back to square one. The best outcome is the corp lease renews and I get more money. The risk is if Houston tanks then I would be forced to hang on until the market comes back. I'm thinking maybe buy more stable properties and cash flow for smaller but more consistent returns