All Forum Posts by: Vinay H.

Buying for what?  Rental or Flip? For flipping, bubble is good :)

For Rental, look at the numbers and if they don't  work or are tight, don't do it yet....

Congratulations and thanks for letting us live vicariously through your flip :)

You can't compete in markets where the investors are overpaying ....

Eg from Wall Street Journal

Demand from the industry’s biggest players has sparked a rush to emulate and feed them houses. Bruce McNeilage, who sold 42 houses in suburban Nashville to American Homes in 2015, has since flipped another 400 or so in middle Tennessee and around Atlanta to larger landlords. He’s building dozens of houses in both regions and buying in the Carolinas, some to sell and some to rent out himself.

Mr. McNeilage had planned to slow down, but local lenders offered financing that was too favorable to pass up, particularly when rents are rising and he’s being hounded by institutional investors looking for houses to buy.

Quantum National Bank, for instance, recently sent Atlanta-area landlords and flippers a memo advertising $10 million that it hoped to lend at promotional rates against rental homes, in chunks ranging from $150,000 to $1.5 million. Quantum CEO Bryan Cohen said the Suwanee, Ga. lender ran a similar special on rental-home loans this spring and the $10 million it offered was snatched up quickly.

I second the fact that there is something countercyclical with Vacation Rentals. Seeing higher inventory and Days on Market in Cape Cod area. I think anybody who is thinking of investing or a second home is trying to make it in the big metro areas with 10% appreciation a year.

As for residents skipping rent and credit scores being in 400 - that goes hand in hand. YOU may have to raise the minimum credit score to 600 and evict the deadbeats ...

Congrats on having 150 units (that is big time) but unfortunately looks like big time headaches as well. I was just posting on another board to someone who had 5k savings and wanted to buy 5-12 doors that they better have good reserves to account for repairs and vacancies.

It seems like a price sensitive market - so yes, renovating the roof is just the cost of doing business as opposed to a justification for raising rent (new roof! higher rents!) I don't think the tenants view the new roof as an amenity... Maybe raise rent but offer concession of first/half month free? That's what Avalon is doing here in MA ...

It would be discriminatory if they were REFUSing to rent due to you not being a citizen. Asking for a security deposit due to limited credit history and/or ties to the USA is probably not discriminatory. It is certainly a hurdle and it is something you can and should negotiate.

Yes if your attorney has some experience with RE contracts, that should be good enough.

A Real Estate agent can help with comparative market analysis to help you confirm you are getting a good deal.

 Doing 5-15 doors with just 5k in savings seem risky. You need to beef up your cash position to account for reserves etc ....

Toronto’s Tricon Capital Group Inc. said that $750 million of the roughly $2 billion it plans to spend will be committed in equal portions by its California home-rental unit, a U.S. pension and a sovereign-wealth fund. The rest will be borrowed.

Invitation Homes , the industry’s 83,000-home heavyweight created by the combination of Messrs. Schwarzman’s and Sternlicht’s rental ventures, last month sold the largest ever rent-backed bond. The houses that Invitation borrowed $1.3 billion against were valued at 26% more than when they were used as collateral in earlier bond deals, according to Kroll Bond Rating Agency.

American Homes 4 Rent , the country’s second largest single-family rental owner, has been adding houses with proceeds from $500 million of unsecured debt the Agoura Hills, Calif. company sold in January. That was the sector’s first such deal.