All Forum Posts by: Vadim F.

I know it's a hot market for cashflow, but I was wondering if I could get everyone's take on Youtuber/real estate  HoltonwiseTV.    They put out these section 8 rentals each day on their youtube that seem like no brainers for such a low cost. I understand that repairs would likely need to be made but does anyone have experience with them.    They do property management and encourage out of state investors to use them. Can anyone give me some feedback or your own experience with Cleveland or HoltonwiseTV  property management?

Had a question regarding section 8 approval. I want to rent a prospective home under section 8. I am trying to ensure the house I am looking at is turnkey (good shape), in hopes that it would be approved under S8. The thing is, I want to purchase of the home to be contingent under the fact that it gets approved for s8 vouchers. 

Is this possible? I wouldn't be sure what to do if the house did not get approved, and want to give myself some sort of assurance. maybe a contingency? Would love it if anyone has advice on this. Thanks!

Greetings BiggerPockets family! I have a general question that I am getting varied answers for. Thus, I decided to query our platform for some well-informed feedback. Quick, down and dirty... We currently own 9 properties, and my question is... Should we create a different LLC for each property to minimize legal risk or hold all of our properties under one entity? I thank everyone in advance for your responses...

Kindest regards,

Mark

just curious why is it so tough to get funds back and cash flow when you rent right now ? 

is it the rates ? or just the market in general ?

Quote from @Vadim F.:

Quote from @Lawson Nesbitt:

Thanks for the response elliot!

quick question. is their a limit to the amount of multifamily properties you can refinance with the bank?

Say you get a private lender for 100k then you buy a duplex for 75k (hypothetically) and put 25k into it and it appraises to 155k. You can now refinance up to 70% with the bank and pay back your private lender the 100k (plus interest). Then you keep the cash flowing property using the tenants to pay the refinanced loan with the bank.

1. My question is this, is there a certain number of properties you can refinance with the bank? like if the deals are all working could you do this strategy forever or eventually will the bank not allow you to refinance anymore properties ?

Thanks for any help!

 If you're going the conventional route, you are only allowed 10 conventional loans. 

 After reaching the 10 limit what are other options for refinancing out of deals ? 

I am new to CRE and would appreciate any guidcance you may be able to offer!

Thanks for the response elliot!

quick question. is their a limit to the amount of multifamily properties you can refinance with the bank?

Say you get a private lender for 100k then you buy a duplex for 75k (hypothetically) and put 25k into it and it appraises to 155k. You can now refinance up to 70% with the bank and pay back your private lender the 100k (plus interest). Then you keep the cash flowing property using the tenants to pay the refinanced loan with the bank.

1. My question is this, is there a certain number of properties you can refinance with the bank? like if the deals are all working could you do this strategy forever or eventually will the bank not allow you to refinance anymore properties ?

Thanks for any help!

Hi BP friends,

I am looking to invest outside of Colorado, where I live. My wife and I have some properties in Colorado for the long-term equity play. And I'd like to invest outside of Colorado for cashflow. 

3 questions for you experienced investors:

1) Which markets are you investing in?

2) What metrics do you look at to inform market selection (job growth, tax rates, red VS blue states etc)?

3) Do you see any markets where cashflow is strong and the potential for appreciation is decent?

Thanks in advance for any insights. 

Neil

Quote from @Vadim F.:

Quote from @Rachel Simpson:

Hi all. I am analyzing a deal that is outside my comfort zone and I am very much in my head and overthinking it. I am hoping for insight from more experienced investors.I currently invest in a class C (probably C-) area that provides fantastic cashflow but will likely not appreciate as well as other markets. 

I have the opportunity to purchase a duplex (Class B neighborhood) in an area that is seeing job growth and with steady increase in both rents and real estate prices. Professionals/ hospitality workers are moving to the area as they are being priced out of the nearby tourist areas where they work. It is also near a large naval base that is going to be adding more jobs, as well. Large development of very nice single family homes being planned for in that area. 

Here is the catch. Right now, it will cashflow MAYBE $50 a month when considering capex, maintenance, etc (Thank you, interest rates). It would be an appreciation buy, mostly. INSIGHT PLEASE! I feel like I need a property like this to balance out my doors in a less savory market.

 How much has the B class property appreciated in the last 3yrs? Do you anticipate it appreciating above national average of 5% on annual basis? 

I am personally investing in Cash flowing properties only. I will use Cleveland as an example since I am familiar with it the most. Say you buy a $65k property in a lower class area and rent it out for $1200 or so a month. In 5yrs you will gross $72k which will pay for that property. So now your $65k investment has now made you $137k and that is not taking into account any appreciation.

That's just paper. You won't be grossing that, you'll be dealing with headache after headache on a $65k house. The cost to fix any part of it will cost more than the house itself, you'll be dealing with awful tenants, and your house won't appreciate anything. Anything that's calculating cash flow on a 5-year pro forma linearly will be deeply disappointed it doesn't work like that. You're going to have vacancies, you're going to have turnaround time between those, damages, capex issues, etc. 

You'll still have cash flow, just way less. And yes, you'll still own a **** property. Your rents will marginally increase.

Now conversely, buy a better house in a nicer area that may lose you $200/mo year 1. Your rental appreciation is likely higher than the garbage $65k house, your tenants are likely higher caliber, probably by year 2 or 3 you'll be in the money. But now the underlying asset is being paid off WHILE you have equity growing in a tremendous house. People trying to make this mathematical are going to end up just being slumlords dealing with problem after problem, and worrying about pennies costing dollars.

Hi all. I am analyzing a deal that is outside my comfort zone and I am very much in my head and overthinking it. I am hoping for insight from more experienced investors.I currently invest in a class C (probably C-) area that provides fantastic cashflow but will likely not appreciate as well as other markets. 

I have the opportunity to purchase a duplex (Class B neighborhood) in an area that is seeing job growth and with steady increase in both rents and real estate prices. Professionals/ hospitality workers are moving to the area as they are being priced out of the nearby tourist areas where they work. It is also near a large naval base that is going to be adding more jobs, as well. Large development of very nice single family homes being planned for in that area. 

Here is the catch. Right now, it will cashflow MAYBE $50 a month when considering capex, maintenance, etc (Thank you, interest rates). It would be an appreciation buy, mostly. INSIGHT PLEASE! I feel like I need a property like this to balance out my doors in a less savory market.