All Forum Posts by: Amran Musaid

I'm looking to buy a few short term rentals in California and need an agent that knows all the rules and regulations concerning zoning and other applicable laws for various vacation markets in California. I prefer an agent who also has short term rentals in California. 

So there's no way for me to get 95-100% CLTV using lender/ seller carry back?

I found a multi-family listing that says the seller is offering a partial seller carryback. How does that work with a lender? Can I get 80% from the lender, 15% from the seller, and put down 5% myself to buy the building?

I've been a buy and hold investor for several years now and now I want to start investing in notes. Is there a broker that will allow me to buy non performing notes in certain zip codes? The strategy I want to try is to work with the borrower to try to get the note performing and thus increase it's value and turn around and sell it. My plan B if this doesn't work as I hope is to just foreclose on the properties and add them to my portfolio which is why I only want to buy notes in zip codes I'm familiar with. I tried doing a little googling and found a company called paper stack but they had like 5 notes for sale. Anyone have any suggestions for me ?  

If the valuation of a multi family is based on it's income how do I know how much I should offer on a vacant apartment building, There is no cap rate since there's no income so do I base my offer based on future income or what ?

Quote from @Jerome Thompson:

I would like to know how the process goes when someone pulls equity from a property and use the money for down payment for another property

 Basically if you have equity in your property and have good credit then you can easily access the equity in your property via a cash out refinance. That money is yours to do whatever you want including use that money to add to your portfolio 

Quote from @Jonathan Taylor Smith:

I'm curious... Living in CA but the property being in MI - what would have been your capital gains tax result on the original flip attempt had it appraised for $200K as you expected? Would you have really gotten to keep those funds or just owe a large portion of the "win" in taxes? And then how would that compare to your tax-free cash-out refi and rental income profit that is likely offset by depreciation and other tax benefits from still owning the property? Personally, when I got into REI, my wife and I owed $14K in taxes each year beyond what was already withheld. We bought 2 rentals and got a $6K refund that next year... So right there we profited $20K on taxes alone. Had I flipped those properties, I would have just been increasing my taxable income. And because I kept them, we got the benefit of their value more than doubling in the following years and continued tax benefits, instead of these going to whomever I would have sold them to in a flip.

And if you got 100 rental applications in 3 days, you're rent is far too low. So, it would seem you have a rental property that beats the 1% rule - which most everyone here on BP would LOVE to have in their portfolio. You really want to sell your golden goose? And why not split the lot and build another house on it yourself? It should also have great numbers when the land was essentially FREE.

I know that the numbers are good but not as good as my other properties. My return on equity is low compared with where it could be potentially if I use the equity in the property. I thought about building another property on the additional lot like you suggested but the cost to build a property that is similar in size to other properties in the neighborhood would cost more then what it would cost to just buy another property. That being said I’ve never built a house and these numbers are based on quotes that I received from builders. Maybe someone here can offer advice on building. 

Hey everyone, 

About 18 months ago I attempted to do my first flip but ended up having to keep it as a rental. I was still new and didn’t know anything about bigger pockets so I totally relied upon my real estate agent. I didn’t do my homework and really didn’t know how to do it. Here is what the deal looks like

Purchase 120k

Rehab 30k

Anticipated ARV at the time of purchase 200k

After completing the rehab which was a real pain since I live in California and the property is in Michigan it was appraised for 150k

I was frustrated and confused because other properties that were within 1 mile of my property were selling at a similar price point even though those properties are by far inferior. After doing a little digging I found out that even the comps that were used for the appraisal were by far inferior because the subject property is a 4 bed 3 bath 1600 sqft on a double lot and the comps that were used were 3 bed 1 bath 1000- 1200 sqft homes with aluminum or vinyl siding. That’s when I discovered that I had pretty much bought the best property within the 1 mile radius that the appraiser used to determine the value. I reluctantly did a cash out refinance at the 150k appraisal so I can pay off my private lender and make him whole and listed it for rent. I listed it for $1600 which at that time was higher then any other property for rent and with 3 days I had over 100 applications. I just recently increased the rent to $1750 and my tenants pay on time every time like clock work. I recently asked that same real estate agent what he thought I would be able to sell the property and he told me 180k even though prices gave gone up since I bought the property. Even though I have a solid tenant I’m thinking about selling it and either buying a couple of those inferior properties or a duplex and increasing my return on equity and get more cash flow. Or could I split the lot up and sell the additional lot and unlock value that way? I’m not sure what to do here and really need your feedback .

Quote from @Scott Wolf:

Quote from @Amran Musaid:

Recently I came across a deal that will double the the size of my portfolio and will cash flow very nicely for me. I have equity in my current portfolio but my current portfolio loan has a prepayment penalty and don’t want to refinance because I’ll have to pay this penalty. Is there anyway to finance this acquisition in which the lender will finance 100% of this acquisition and use my current portfolio as collateral for the deal? It’s a portfolio of 7 Brrrr’s and would like to 100% financing with my current portfolio as collateral then refinance and pay lender after I refinance the deal. I really would hate to walk away from a deal this good but don’t know what to do. Can anyone advise me?

 Where are all of the properties located, and what kind of equity is in your initial portfolio?

All the properties are in Michigan and I have about 500k in equity in the initial portfolio 

Recently I came across a deal that will double the the size of my portfolio and will cash flow very nicely for me. I have equity in my current portfolio but my current portfolio loan has a prepayment penalty and don’t want to refinance because I’ll have to pay this penalty. Is there anyway to finance this acquisition in which the lender will finance 100% of this acquisition and use my current portfolio as collateral for the deal? It’s a portfolio of 7 Brrrr’s and would like to 100% financing with my current portfolio as collateral then refinance and pay lender after I refinance the deal. I really would hate to walk away from a deal this good but don’t know what to do. Can anyone advise me?