All Forum Posts by: AJ Singh

 Keep looking at your local market. you will find something in your criteria. OOS investing is not for everyone and every rental will have some items needing attention at the acquisition time. 

@Pedro Diogo

this is an amazing story with a great outcome. Best of Luck !! We have plans to visit Lisbon in easter break. keeping fingers crossed/.

@Tristan Moylan

Thanks for your service. I would request you to talk to a mortgage broker and first find out how much investment loans you can qualify for?

Then decide whichever investment route makes sense to you. SFR or 2 to 4 unit multifamily or a 5 and more multifamily

Stay local if you can with your investment journey

@Noah Dexter Leslie

you goal should be to accumulate 16SFR's in the next 5 years. Each property should yield around $300 a month with a 20 percent down payment, taxes and insurance. 

Try to do with local SFrs if you can. A 2 to 4 multifamily is possible but a lot of investors start from the SFRs. If i had to start my investing journey again, i would start with 2 to 4 unit multifamilies. 

Your goal is absolutely possible. you need to have access to funds for the first few houses. I am sure you can pull out equity from the first purchases to fund the ones in year 4 and 5. Now this all depends on the housing market not being in a recession

Please do your due diligence.

 @Jay Hinrichs

I am not a fan of turnkey investing as the prices are more than MLS or comps. If the cash flow numbers are ok even with HOA monthly premium, the poster can do their due diligence.

i see enough posts on BP where investors dont even visit the cities or neighborhoods and just pull the trigger..

Real Estate Investing is not passive as you know it well.

@Jonathan C.

i have a couple of SFRs in Memphis which have annual HOA premiums of $200 to $300.

Factor in the monthly HOA and review if its still cash flow positive. Dont walk away due to non disclosure of this item.

I bought a townhouse from wholesaler where HOA only informed me after closing that we are not allowed to rent the property. I sold immediately on MLS for $20k profit.

Just make sure you do your due diligence and numbers work . 

Ask the builder for a residential lender referall if he has sold on a residential mortgage before. the benefit of a residential mortgae is it will be fixed interest rate for 30 years while a commercial will be fixed for 5 or 7 years but loan will be amortized over 30 years.

you can go the county or city building or planning department and ask them a solution for the building to be considered a triplex in their records. 

i am sure with permits and codes, something can be done. 

@Damon Albers

The security deposit should have been either credited on your HUD statement or in the managements books. The way the property was left, i think the whole security deposit needs to be applied to your rehab repairs.

This is an expensive lesson but a necessary one for your next acquisition. Now i am hoping you were not presented with a tenant paying above market rent to make the numbers look good for the sellers. 

Please make sure to check zillow, redfin or rentometer to check the existing rents in the neighborhood. 

With a decent rehab, your asset should be leased quickly.

@Snehanshu Ashar

you cant compare the quality of your asset with whats available on the marketing sites in southern and mid western states mentioned above. The neighborhoods and tenant quality are not the same. you can refinance your existing asset in bay area and then explore the market you want to be in. i am in the memphis market and can affirm the deal flow from good neighborhoods is non existent right now. the SFR prices have shot up in price considerably at 2 to 3 X

The deal flow from Inland empire in southern ca is actually better and numbers are the same as OOS investing.

I would encourage you to look at an hour away from SFO e.g. Tracy.  another area can be Sacramento, Central Ca cities like Bakersfield. in southern ca, Riverside County is getting good rental yields and appreciation. 

Do your due diligence and remember you cant buy assets at cheaper prices anymore in california anymore. Dont sell a house in california unless you need to  upgrade your primary residence.. 

@Sachin Amin

Congratulations on your journey so far. SFRs inventory is tight with the numbers for me as well in memphis. If anyone of your SFRS have appreciated considerably, you can do a 1031 in multifamily in Columbus easily. There are PM available in every area. 

I leveraged gains from 4 houses in four multifamily in Southern Ca. You can do the same. Capture the gains of the appreciated properties or invest new money in the multi family investments. 

This can be the start of your next exciting journey!