All Forum Posts by: Tyler Herman

I’d pick somewhere where there are easily defined good middle and bad areas. Some of the cities people are flocking to here on BP are a real mixed bag and honestly I think a lot are buying into bad areas someone who lives in the area would probably have avoided. 

I’d pick somewhere you’ve at least been too once or twice and/or is cheap to fly to. 

After that it’s more about having good people to manage for you.

The grass is not always greener. If you can get your numbers within 2 hours of where you live it’s always better to do that.

PM just deposits the money in your account each month. You pick the account. They may keep a few hundred in your name for small repairs. Your PM is the best person to ask about this.

If you already have the loan it doesn’t make a difference where you get the checking account, and even then it really doesnt matter that much. 

Both seem good if the property meets your numbers which it looks like it does in both cases. I'd count on the rates going up so Option 1 become better after the 8th year. So I guess it depends on how long you plan on holding the property or to pay it off. Also, if you plan on loading up on properties or just sticking with a few for a while. Not to hard to pay off such a small loan but if its one of many, maybe not as easy. 

You didn’t say what you wanted to do with your life. If you plan on staying in the Bay Area you might as well buy something now. Are you going to be there for 1, 5, 25 more years?

You could take 750k/30k to get 25 $100kish rentals. If you could manage $300 a door that’s $90k a year in cash flow. Could travel the world pretty easy on that.

You could put $750k into a $2.5mil apartment complex and again, go travel the world, or be a bum, or just keep working, pay your 4K rent in SF and get rich faster. 

90k properties going for 50k sounds a little unlikely in this market, maybe the starting bid is 50k.. but who knows. 

Zillow has it's uses but finding current deals isn't one of them. Talk to a realtor. Most have a site they can give a link to so you can get access to what's actually live on the MLS. Good deals tend to go right away so if you're waiting for it to show up on Zillow it's already too late.

It would be pretty hard but I guess not impossible to get financing with hard money. Probably not likely though. Usually 12 month to refi although some can do it in 6 months. 

Sounds like you're really just starting. You should spend some time reading more here since most of your questions are answered here and then some. 

There are quiet a few strategies you can read about here from people in the military. Take advantage of those VA loans!

Hmm I wonder if these lists actually have the best cash flow cities or just the places with the most turnkey businesses?

I don't know why people are talking about this "upcoming dip" like they know with some certainty that housing prices are going down soon. Investing based on speculation is the same if its the housing market or the stock market. Not smart. 

So you really have 2 options there. How about check out the multifamily market and see if theres something available you'd be interested in trading up for. 

I think people here are  falling victim to recency bias. 2008 is fresh on the mind so everyone is thinking we are “due” for this wonderful correction and the deals will be everywhere. 

I’m not saying you have to take bad deals but what are you going to do if the market keeps climbing for 10 more years? Can’t sit on cash forever. 

Have you thought about partnering with your dad? Not sure but as a college student I’d think it’d be tough to get into a property with only 10k, even as a primary residence. You might need him to co-sign with you anyway.

Live in flip would make sense just make sure the property would cash flow as a rental in case it can’t sell right away (options).

It’s Biggerpockets so everyone is overly optimistic but also it’s a sign of the times. You’ll probably see the same thing over on any stock investing boards. Everyone is making money right now because everything has been going up steadily for 10 years now. 

I bet if interest rates suddenly rise a couple percent on those people with adjustables, the bottom falls out the rental market, or the housing market  in general tanks again you’ll see all these flippers and people leverage to their eyeballs losing everything, but until that happens... 

There is a whole group of investors, I’d bet 70%+ on here that started after 2008, myself included. 

The bad thing is a meltdown probably won’t happen for another 5 years so lenders will get that much more loose and people will get that much more wreckless. Can’t have a crisis without the carnage.