All Forum Posts by: Alfredo Sanchez

Quote from @Mohammed Rahman:

Hey @Alfredo Sanchez - that's awesome to hear that you and your sibling are planning to buy an investment property together to househack! 

The questions you asked are basically the $1T question around: timing the market. 

As I'm sure you've probably already heard, you can't time the market - but time in the market will beat timing the market every time. 

In terms of getting your offers beat out, it's a low inventory market right now and homes that are priced well definitely go fast. 

HOWEVER - you should work closer with your agent to figure out why your offers aren't getting accepted. Yes price is important, but it's not the only thing out there that the seller might be looking for. 

For example, if you were the seller and needed 6+ months to move out of your home for whatever reason - would you be ok with taking a lower offer if the buyer said they're flexible with closing and can give you a few months post-possession? That would at least make you consider the lower offer. 

There's more than one way to structure an offer and its terms - DM me and I'll discuss about it some more with you. 

P.S. I'm a realtor, and an investor, and a househacker - I know where your head's at, checkout my content on all my social media (ClosedByMo). 

My sibling and I aren’t in a rush to make an immediate move so I may use that to my advantage when presenting my next offer. Thank you. Ill definitely be reaching out to you soon to see how else I could structure my future offers. I just saw one of your videos and the buy and hold rental property is exactly what I’m trying to do. Thankful for being able to be connected with someone on the same path. Thanks for reaching out. Ill be sending you a DM soon

Quote from @Kenny Smith:

@Alfredo Sanchez

As a few people already mentioned, sometimes it's the agent, your offer, or just the luck of the draw! You can get lucky and lock in your first offer, or it takes 5, 10, 20 offers sometimes.  

I don't know your market exactly, but I do thoroughly believe there will be more and more opportunity the next several months.  Your everyday home buyers aren't typically looking around the holidays.  And, most sellers know if they want to get top dollar, they should wait until the spring to sell.  So what you get is the people that are selling in the "off-season" are typically very motivated.  Maybe they are going through a divorce, relocating due to a job, finished a flip, or simply have to sell for financial reasons.  Regardless, these people don't want or cannot wait to sell their home.  

Yes, inventory is typically lower so there isn't as much to choose from.  However, with this year and rates almost at the mid 7's right now with the potential to go up even more, buyers could really back off.  Which means current houses that are on market will sit longer, building up inventory which means opportunity.

Lastly, something a lot of investors/agents aren't talking about right now is what the future buyer demand is going to look like.  Yes, we all know there is much pent up demand right now.  But many people don't know that we saw a very large birth rate spike back in 1990.  That is significant because the average age for a first time homebuyer in the US is between 34-36.  That means over the next few years, you are going to see even more buyers enter the market which is going to make buying later even harder.  Rates go down, and it's going to be a feeding frenzy.

Word of advice, get in now.  Don't wait, you will regret you did.

Best of luck!

Thanks for the advice. I suppose I could work more closely with my agent. I was a little hands off since he’s a family friend but when it comes to a big purchase, I should be more involved when it comes to presenting offers. Thanks again 

So when I was doing market research for a short term rental property in the Poconos PA area, I was introduced to PixieBrix which allowed me to scrape data from Airbnb Rental websites to figure out how much I could charge for a nightly rate. Its a free Google Chrome Attachment that guides you in creating the extension to scrape data. 

I have very minimum computer experience and was able to figure it out for free. If you're looking for someone to help you out with this matter, I may be able to help you out  @Jacopo Iasiello

Quote from@Ben Einspahr:

@Alfredo Sanchez I think you will have better luck if you start your search back up between halloween and new years. In the Denver Metro market, that is when we have seen the most opportunities. Typical homes that are being sold are by families. Not many families are wanting to sell during the middle of the school year unless they have to.

I would stick with option A, the house hack in your back yard vs. the out of state STR. Much higher probability for success.

 Thanks for the recommendation

A majority of the homes we were looking at were on the market for less than a week. Any homes that have been on the market for longer were either under contract or were above my max budget @Conner Olsen

Thank you both for your help and guidance in this process @Joey Banasihan @Abel Curiel

I did not know about the option of doing an escalation clause. I will take all of this into consideration and will continue to push forward on this home purchase. 

@Joey Banasihan thank you!! Our agent is a family friend and has screenshotted his conversations with the sellers agent and sometimes has me listen in on phone calls with the sellers agent. Our offers have been made with 15%-20% down and we still get outbid by better offers I suppose. 

You make a good point of the market getting even hotter once rates drop. 

I'm looking into buying a property with a sibling and renting out a portion of the house to help with the mortgage. We're approved and have been outbid several times on homes where we offered 15-20k over asking. 20K over asking on homes that needed bathroom and kitchen remodeling as well as other minor touches. Supposedly most of the houses we looked at always had 10+ offers so we took some time off from looking at homes in order to not compete with families who were looking into moving into a home before the new school year. 

My sibling and I aren't in any rush to buy a home but we're hoping to make a move soon and give it another shot in acquiring our first home. The question here is, should we wait for the market to calm down? Or pay top dollar leaving little room for future appreciation gains? 

Another option on the table is buying a short term rental property in the Poconos, PA on my own. The goal would be to generate equity in that home to than use in the future to buy a home on Long Island when the market is right??

Any other strategies I should look into?

Hello community,

I’m a first time home buyer living on Long Island looking to invest in a rental property with the following scenario...

1) Excellent credit score

2) 20% down payment available for a home

But I have not been approved for a loan because of my high debt to income ratio. Which is due to the fact that I don’t report a lot of income. I’d be relying somewhat heavily on potential rental income.

What should I do at this point? Buy a rental property upstate since there’s nothing in my price range If i go any lower in my desired Long Island areas? Get a new job? Find a partner willing to co-sign and who’s in need of an apartment to rent?

I’d appreciate any input. Thank you all and best of luck

Hey @Irina Belkofer. Thanks for the response. 

I'm assuming he was taking into consideration the amount of debt that I'd encumber if I were to be approved for a loan. 

Yeah we'd have a combined income that well exceeds 3K. 

I'll keep doing some research and scouting for a good broker. I'll definitely be looking into those topics. Again thank you