All Forum Posts by: Ashby Tyler Cappelmann

Hello everyone! I have a few questions about the 203k loan. My wife and I have found a duplex in our market that we want to purchase for our 1st rental property. It's older and needs a lot of work but has been on the market for over a year and is a prime candidate for purchase price well below market value. The listing price itself is technically already well below. My question is how does the 203k loan works in terms of value appreciation? The listing price is currently 185 but I believe we could get it for 160ish. I think a 40-50k dollar renovation would make this one of the most attractive duplexes in the area. The only surrounding comp I could find on the MLS is currently listed for 550k but is comparable because it's in almost brand new condition. I know they base the loan off of the after rehab value but that seems like a lose of an investor? We're going to be house hacking once the deal is done but am I correct in saying that if the after repair value of the property is deemed to be a conservative 300-350 and we only have 200k into it (150k purchase price and 50k rehab), are we taking a loan out on 300-350 or the 200k we have into it? Lastly if we would be forced to lose the equity by taking the loan on the ARV, what's a good alternative option for financing the rehab separately from purchasing the house? We have some cash but not enough to cover the entire rehab. Thanks in advance to anyone who replies.

@Mark Nolan thanks for the welcome! I see you're in the Carlsbad area. My wife is originally from Long Beach and we visit there a few times a year. Nothing quite like sunny southern California. One of my favorite places on earth. Once I get some experience and cash flow I plan on buying some investment properties in that region but that obviously takes a little more capital than most purchases. How is the demand for rental properties in Carlsbad? Long Beach? I know the population is extremely dense and the housing prices are insane but is the rental demand relatively steady? My instincts tell me yes since very few people can afford to buy. Thanks again and I look forward to speaking with you.

@Andrew Merritt I'm currently scouting the MLS through trulia, zillow, etc. I'm not exactly ready to buy due to my wife and I's military situation. We're preparing to move to the area and in the mean time are building up the initial cash. Planning on purchasing 2-3 upon entry.

@Andrew Merritt thanks for the compliment! Foothills is one of the big 3 that had HORRIBLE reviews but again those were from mostly tenants. I saw none from landlords complaining about their services. There are 3 that I'm considering that have no reviews that I'm going to list today. I also agree that the majority of the student housing will be for new freshmen. 

Thanks for the info Derek! Are your current property and upcoming additional properties student rentals? If so, how many months out of the year do you typically experience vacancy? Also, based on my research most student rentals are fetching 375-400 a door. Does that statistic hold true for your rentals? 

Hey everyone! My name is Ashby Cappelmann and I'm currently in the education/financial preparation phase of my real estate investment career. My wife is active duty military and is leaving the military in 2020. Once she separates we are moving back to my roots in Clemson, SC. The time between now and then will complete immersion in preparing myself educationally and getting as much cash together as possible. My plan is to capitalize on the Clemson University student rental market. My biggest question at this point is how to ensure that I pick the right property management company. I plan on being a hands off investor with 0 property management involvement. Having made that decision I begun researching property management companies in the area. There are between 5-6 that serve the area I plan on being in but there are some serious red flags. The first few on google reviews average a 1-2 star rating. After reviewing the ratings most of the horrible comments are from tenants and not landlords but I want to confirm with other current landlords that bad is bad. My philosophy on this is that if these tenants feel mistreated then so will mine most likely? The other management companies that serve my areas are a bit smaller or newer and don't have any reviews. I have a list of about 10-12 questions for the interview I plan on conducting with each but I wanted to see if anyone has any experience in the student rental/property management market and more importantly if there is any one thing(s) that a student rental property management company MUST have or MUST do to successfully manage your property? Thanks in advance and I look forward to meeting everyone!