All Forum Posts by: Sebastian Marroquin

You can get one for free :) send me a message 

Quote from @Sara Frank:

Once again I agree with @Ozzy Sirimsi - Baltimore can be a great market especially if you have a good team on the ground, but investing here just to get those cheap price points is generally a bad idea. IMO, the power of owning rentals in Baltimore is the hospitals. Theres no guesswork on employment data like there is for other states. There is always a demand for healthcare workers and therefore always a demand for housing those workers. Invest near a hospital like Hopkins or Maryland, find a good property manager and you're golden. Hope this helps. 

hey miss : do you have the teams for investments there? (Some of my CA investors would gladly invest there if you do). Ie : Contractors that you can trust, PM, Handy people, Lenders, drafter or architect and you as the realtor. How much can you rent out a property going for $120k to $150k there? And would it be a B or C area and property?  

Quote from @Axel Meierhoefer:

@Blake Wood Hi Blake. I live in San Diego county myself and am currently investing in Fort Myers as well as other places out of state, i.e. Ohio and Panama.

The main aspect I haven't seen touched on in this thread is performance. You are the perfect example to illustrate this case. You live for $750/month and even @$1450/month the owner of your property is not getting good performance. The place is probably worth $350K, maybe more.

Good performance would be rent of $2600/month and above. Even at $1450 it's a steal.

Now take a property in Florida you buy for $300K and rent for $2300/month, you are the one getting the good performance while your landlord is still suffering from bad performance on his property. Your purchase would work fine with about $50K down payment.

I have been investing out of state because I live here in SD county where I or you can't get good performance and it all depends on the turnkey providers we work with. I know that BP is not a huge fan of TK investing but I am living proof that it can work very well. I have 100% occupancy, basically no turnover, good cash flow, and time to help others do the same.

In case you like to chat about or meet for some coffee/ice-cream to cool down from the Santa Ana - heat we have these days, feel free to DM me 

 Agree with everything you said: 

Only note I would make about this is that you could be creative in your back yard and create better performance. I. E. ADUs, force appreciation with renovations or additions, adding a second home with SB9 in CA and creating the cash flow and taking advantage of appreciation.(You would need more money, time, effort and resources (teams): to make this happen). This is not directed to you at all, but just other people that would be willing to put the time and money to make it happen in their back yard as opposed to OOS properties. :) 

Quote from @Blake Wood:

Quote from @Sebastian Marroquin:

HELLO! My friend you have more resources than you think…. 

You work with heavy flippers? !!!!! You know how many leads they say no to before choosing a flip… 

Build the relationship with them (if you haven’t already ) and buy one of the properties they say no to. Even if another realtor represents you on the purchase (who cares about the commission). 

Buy a fixer (primary home ) at 5% down. And rent your current place to someone for 6 months to 12 months. Even if you let it sit vacant for 1 year (which it won’t) but that would be $700 x 12 : or $8,400 lost… 

If you buy this year at $600k : that property will go up by $30k this year and another $30k + next year. 

Then rent the place out and come back to your little tiny small apt (kidding) :) 

I bet you wont come back lol but let's just say you did…. And rent out the home you bought: that you renovated and that you put an ADU in: that home will be worth $900k with all the forced appreciation. And you will be laughing to the bank.

What if you instead you buy a condo for $500k : same difference and that condo will be worth $650k in 2 years (if you bought a fixer) 

What if you keep it simple and buy a renovated condo: (I don’t suggest it) but it is still better than waiting a couple of years to save more money for a multi unit. 

2 years or 3 years from now after getting started, you will have $100k or $200k or $300k more money than you do now and you will be able to sell it or refinance it and buy something you want to keep the long haul. 

Start marketing for off market listings : you will either find your home or will find more listings to sell! 

But you have to get started. 

Make a plan, save for an emergency and execute! 

 Wow - really appreciate the thorough response.  I guess the main friction I am up against is that my place right now is way better than any appt I could buy for $500k... seriously, it is the rental deal of a lifetime haha.  Also, I doubt that my landlord would allow a sublease.  All that being said, I know I'm on the wrong website if I just want to keep renting...  

The fixers I am able to source for these guys are all being purchased with cash so the 5% down option would be another obstacle.  Regardless, I hear you and appreciate the feedback from a felllow Californian!

If the door closes - go in through the window! :) 
be creative. The reason why you need cash for an off market home is bc most investors use that as their value proposition…  
I just bought a home for $500k in an area where fixers are $680k with 5% down payment. :) 

 There’s also companies (lenders) that can give you a cash option and then quickly refinance you to a 5% loan in-house with market interest rates. 

You can also talk to the investors you work with and ask them to buy the home cash: you renovate it : and then sell it to you for $25k above (purchase price) : or quickly sell it back to you as a fixer with a $10k to $20k gain. 

* last thing I will say: At one time in my early years - My family lived with a section 8 voucher (the projects) and I also had a lot of friend from our neighborhood and school that also did. 

The trend was always that people did not want to get a better job, a college degree and career or simply make more money bc the section 8 managers would adjust the price… 

It was the dumbest decision that you could make: stay in a low paying job or choose to not make more money because you would have to pay more in rent or leave the projects all together…  The year I graduated from CSUN I landed a teaching job and was “forced” to leave and go rent on my own (and went from $300 per month to $1200 per month) which was a huge jump for me… That forced me to need to make more money, to seek out better paying jobs and to have the motivation to do better and grow. I quickly moved into Real Estate and have earned over $150k every year since then. 

Your rental for $750 per month may be keeping you from wealth, growing, and doing much better in life. 

This is why usually, people tend to do better once they have children, a wife or a mortgage. 

Bc they have to. (Read that last one in a book recently). 

Do what you want, do what makes you happy and be honest with yourself. Be creative and increase your income. Invest in yourself if nothing else bc expanding your mind and your paycheck will enable you to be in a position to not have to worry about a monthly mortgage, a down payment, or renovation funds…. 

Coming at you with respect and with good intentions. :) 

If area you really like AND def want to buy there: 

look at : MLS

Zillow 

Apt .com 

  Facebook 

And put out some Pseudo rental homes out there : 3 beds 2 baths : 2 beds 1 bath for different prices : ie $1499 per month | $1550 per month $1700 per month $1950 per month 

One at a time and see which one gets the most traction depending on bedroom count. Realistic and optimistic numbers :) and you will start seeing the trend based on competition. 

If you get a lot of people inquiring : may be too cheap and vice versa :) 

Also reach out to Property managers in the area : they should know 

Quote from @Carl C.:

Walkaway from this property. Do yourself a favor and start with a single family of duplex. You are not well positioned to take this on. Not trying to be rude, just realistic. There are too many problems to list here, first and foremost the lack of an inspection. ALWAYS have an inspection. You need to learn on something smaller where there are fewer risks before jumping into a larger property. 

 WOW- WOW AND WOW (agree with this guy and many other above)

I blame your lender and your realtor. Maybe you like them, maybe they are nice people… I don’t know them… but they are the professionals here. 

I would have asked you 10 times before submitting an offer on this one if you understood all of the comments above. Luckily, you came on here and I see a lot of great advice above and that people are actually trying to help! which is great. 

Think about getting a realtor that can guide, educate, and walk you through the process of choosing an asset. It has to do with your current level of understanding or threshold, your resources (attorney, PM, Lender, handy people, contractor etc) along with capital on hand (cash to purchase, renovate and emergency funds), current life situation and life Style, and short term and long term goals. (I do understand that sometimes clients want what they want and won’t take your advice) but you don’t strike me as such… 

Make a plan: Get focus on what you want : get educated on that asset class (all the ins and outs): learn to assess the asset (what’s a good deal and what is not): even if you wave an inspection Cont. always inspect the property : Do your due diligences (that one is loaded) : Know tenant law and process for closing on the deal. 

Sounds like there is plenty of time for you to get out of the deal. (Unless you let everyone know on here that you are rich and this is a side project for you) :) 

Quote from @David Isham:

Yes short term rental under 30 days would not be allowed in the ADU's but the 2 existing long term tenants I have in the 3 unit building could be moved into the ADU and those vacated units would be Airbnb'd which is why I mentioned the potential increase in cash flow as Airbnb pulls in at least 2x what I can collect for rent. Btw how do they legally enforce this requirement to not rent out the ADU's for under 30 days? Do they record something on your deed? @Dan H. I dont think I can use financing as I don't want to mess with my low fixed loan. Not sure how else I could finance the ADUs without messing with my existing loan? The beauty of doing Airbnb on my property is that I live here and it's easy to manage and clean the properties rather than having to drive somewhere. Dumpy condos here are $500k and any HOA would certainly not allow Airbnbing. I am open to other ideas on where to deploy my $800k. It would be VERY appealing to not have to deal with new construction as where I live it's a nightmare dealing with the planning department, contractors and all the other sharks that want a piece of me.

What city are you in? And if you build : what is the intended sq footage goal per unit?

HELLO! My friend you have more resources than you think…. 

You work with heavy flippers? !!!!! You know how many leads they say no to before choosing a flip… 

Build the relationship with them (if you haven’t already ) and buy one of the properties they say no to. Even if another realtor represents you on the purchase (who cares about the commission). 

Buy a fixer (primary home ) at 5% down. And rent your current place to someone for 6 months to 12 months. Even if you let it sit vacant for 1 year (which it won’t) but that would be $700 x 12 : or $8,400 lost… 

If you buy this year at $600k : that property will go up by $30k this year and another $30k + next year. 

Then rent the place out and come back to your little tiny small apt (kidding) :) 

I bet you wont come back lol but let's just say you did…. And rent out the home you bought: that you renovated and that you put an ADU in: that home will be worth $900k with all the forced appreciation. And you will be laughing to the bank.

What if you instead you buy a condo for $500k : same difference and that condo will be worth $650k in 2 years (if you bought a fixer) 

What if you keep it simple and buy a renovated condo: (I don’t suggest it) but it is still better than waiting a couple of years to save more money for a multi unit. 

2 years or 3 years from now after getting started, you will have $100k or $200k or $300k more money than you do now and you will be able to sell it or refinance it and buy something you want to keep the long haul. 

Start marketing for off market listings : you will either find your home or will find more listings to sell! 

But you have to get started. 

Make a plan, save for an emergency and execute! 

Quote from @Ariel V Mangoba:

@Bryan Pham Pls let me know hows it went i'm on the same phase found couple a potential deal that i can wholesale but seems like everyone talk about it but no one really give some useful info about it. 

As a realtor : it would be very easy to get you a contract and all i have to do to be safe is : to erase my name and BRE number at the bottom. I have helped people with such contracts in the past and we just have to make sure the seller and you understands that there is no representation for either from me (both written or expressed). Contract is between seller (home owner) and buyers. You guys are trying to re-invent the wheel…  and dm me your whole sale properties in CALi :) I have a lot of retail and investor buyers 

ARV - 80% - renovation costs = purchase price

Assess : renovations with contractor 

Get: an inspection 

Use a realtor 

Offer 80% minus renovation costs 

Example : ARV is $400k

80% is : $320k 

Renovation costs: 50K (so 320k minus 50K) equals : $270k :)