All Forum Posts by: Andrew Freed

@Jerry Zhang - What do units normally trade for in the area? If units trade for $30k on average and you are getting them for $45K you are overpaying. Figure out what a good price per unit is relative to the area and that will give you insight into if its a good deal or not. Additionally, is there increasing population or decreating population. Properties in growing areas with increased rental demand are definitely more desirable. Good luck with bringing the deal to the finish line! 

@Dozar Real - I agree, a unit like this will not rent for the price of the additional bedroom. However with that said, can you take square footage from somewhere else to create a hallway or create another entrance into the bedroom? If so, you might be able to make a unit which functionally does not make sense into a normal 2 or 3 bedroom unit. With some creativity and some carpentry work (usually not that expensive), you can create value by turning a non-optimal unit into one that maximizes the square footage. I hope this helps! 

@Jimmy Rojas - Simple solution, complete your taxes. You need your tax returns completed to get the best loans, especially traditional loans like an FHA or owner occupied loan. You will get exceptions on your income at small local credit unions and banks who will utilize your 1099 income over W2 income more loosly, nonetheless it all starts with you completing your taxes. Otherwise you will be restricted to DCSR or hard money loans and have to bring 20-25% down.

@Fernando Guzman - Welcome to BP! Have you started investing in SFH? What is your plan to expand your real estate portfolio?

@Kyle Fitch - It took about 2 years for me. I did it by househacking 2 multifamily and joint venturing on about 20 units of commercial multifamily. I leveraged a HELOC on my first property in the amount of $200K and utilized that as a warchest to start acquiring cash flowing multifamily. With the help of normal appreciation, forced appreciation, tax benefits, mortgage paydown and cash flow, I was able to hit the million dollar market pretty quickly. I hope this helps!

@Angela Marquez - Congrats on the purchase! Sounds like a solid deal. I do know, through other investors, that Orlando is a little oversaturated with STR hence if you want a good performing property, you really need to make it stand out. For instance, creating a Harry Potter themed airbnb or a disney airbnb. Making yours stand out via themes should definitely help your ROI and stand above the competition. Congrats again!

@Srinivas Bondada - When first starting out, I highly recommend investing in somewhere close that you can check up on if needed. Hence if I were in your scenario, I would be targeting properties in the Texas market, preferably at least an hour or so away. At the early stages, the more control you have over your real estate, the better returns thus I recommend investing locally to make your dollar go that much farther and gain a good familarity with real estate before exploring out of state investing. Out of state investing is great, however everyone out of state is incentivized to take money from you hence if you are not experienced or know what you are doing, people can easily take advantage of you. Just my two cents. 

@Christian Gibbs - I agree with the sentiment. Normally there is some sort of onboarding or start up costs however usually PMs charge based on how much revenue they received hence if no revenue is produced due to the property being vacant, no funds are collected. This is the preferred strategy since it incentivizes your PM company to fill it as quickly as possible so they actually start receiving revenue from your property. I would definitely question a charge like this. 

@Robert Cardinal - Nice, it's a fun journey for sure. Filled with hard work and a ton of time but well worth it. I host a local real estate meetup in Worcester every third Wednesday of the month. It's called Simplified Real Estate Investment meetups, you can find us on facebook. We always have a super talented guest speaker, food and it's completely free.

Also, if you're in Worcester, you gotta house hack! With so many multi's, it makes it so easy. Best of luck and look forward to seeing you at some real estate events. 

@Sanjeev Advani - What market is this in relations to? Each sub-market has there own market dynamics. This may be true for the Texas markets, but it may not be true for the northeast markets. Just something to keep in mind when looking at these predictions.l