All Forum Posts by: Beda Yang

Hey Ya'll just looking for a plumber referral - seems like we've been coming up on issues with all the folks we've been trying to work with.  Any recommendations?!

Wondering what your experiences are w/ commercial loans w/ out of state llcs?

meaning, if i have a wyoming llc that's going to hold properties in ohio, are most lenders okay with this?

thanks!

Awesome idea..shoot, we better be quick cuz I turn 30 in like 4 months :)

I'm a transplant from Oakland and will be living in Dallas.  Would love to connect and network with likeminded folks.

@Arlen Chou thank you for the recommendation, and awesome to hear you're doing deals locally.  I'll be sure to check out the summit tomorrow and hope to meet you there. 

@J. Martin nice to meet you and please let me know the details around the Oakland Summit.  

@Andrew Johnson Thank you for a great perspective, you certainly understand the nature of our space.  In this case, I would definitely have a property manager, as I wouldn't be able to manage remotely from Dallas.

But point well taken, I won't let REI negatively affect my focus on closing software deals and advancing my career. I hope to be able to excel at both! :)

@Robert C. great point and thanks for the perspective. I did the two recent refis to take cash out (to invest) and consolidate some other loans.  So yes, I'd have the ability to hold in oak and continue to invest in Dallas and Columbus 

sorry for this plug, but wanted to point you to my post today to see if i can get your opinion on my situation in oak/east oak: https://www.biggerpockets.com/forums/623/topics/49...

thanks!!

Hey All,

Would love to hear your opinion/logic on my situation... Keep in mind I'm a newbie at this so I appreciate any insight/opinions...

tl;dr - (negative) cash flow v/s betting on appreciation

My fiance is likely to secure a job in Dallas and moving there in the next two months. I would stay in Oakland for the next 6-12months and then move out there to join her. I'm wondering what I should do with my two properties out here...

*keep in mind I started on Bigger Pockets after getting these two spots, so I purchased more as a homeowner/consumer as opposed to an educated investor

**Also, I have a good paying W2 job selling enterprise software, and have been trying to get into REI only on the side. This gives me quite the financial buffer for negative cashflow in exchange for equity.

***My goals/strategy is long term buy and hold/cash flow props/brrrr when I can find them (all midwest /dallas moving forward)

****My ultimate question is, should I keep it, rent it out, and take a negative cashflow and bank on debt reduction/bet on appreciation, or should I just sell it and cash out? I'm fairly certain that the way the market is now, I can get minimum the appraisal values if I sell.

1. The current house we live in is in Highland Terrace (Fruitvale area), and it seems like the area is improving quite nicely. I purchased a (horribly) flipped house Dec 2015 for $550k, 4 bed 2 bath, 1300SF, completely remodeled. I recently did a cash out refi for $562k @ 4.25%, appraising the property at $750k (I am planning on taking the cash to invest in some actual cashflow props in the midwest). PITI is ~$3600/month.

So far, I've probably put in an additional ~12k into repairs, drainage, updated appliances, gutters, termites etc., getting stuff built the right way to make the house last. There is probably still around ~15k more to do (earthquake retrofit, minor stucco repair, landscape) before it is rent ready, long term. I have the cash ready from my refi.

I'm estimating rent I can get will be minimum $3750, possibly up to $4000/month. Afterall, the house itself looks really great, pretty much brand new, and with the additional work I've put in, the house should last.

As you can see, the rent would only barely cover PITI. Any maintenance/repairs, capex, vacancy, and property management for when I leave, will be the negative cashflow.

Now having said all that, the only reason I'm still considering keeping it is because of the potential of Fruitvale. Even though Uber is no longer coming into town, they are looking to sell the remodeled Sears building, which will bring more jobs into Oakland. Blue Shield is bringing over 1200 more employees as it relocates it's HQ to downtown Oak in 2019. There are primarily condos / apartments around downtown & Lake Merritt, so naturally, if you want more space, you would go have to go east, west or north. The Brooklyn Basin, after getting developed, will provide more trendy shops, restaurants, etc. to make East Oakland nicer. So if I were to bet, I'd bet on my area to improve quite significantly in the next 10 years. So my logic is, marginal negative cashflow + reduction of debt + gentrification/appreciation might make it worth it to hold long term?

2. Similar situation in my condo in Adam's point (Lake Merritt), although I'm already renting the spot out. I bought it at $341k in 2014, refi'd recently at $362K, 4.375% w/ $550K appraisal. PITI is $2100 + HOA is $421 (for ZEROOO amenities I kid you not). I'm renting it out at $2555/month, but will raise that up to $2700-2800 in next couple years. Tenants I have in there are awesome, and there are rarely any repair costs, capex, and vacancy rate for this area I can ensure will be 0%. The only thing here, is that Lake Merritt has already gone through the crazy double digit appreciate phase, so upside potential is perhaps a bit more capped, although more stable than fruitvale in the event of near term adjustment.

What are your thoughts? Should I hold long term to see where Oakland as a housing market ends up? Or cash out and take my money to other markets (Dallas/Columbus) to see what damage I can do out there? Or perhaps even 1031 exchange on a duplex+ in Oak and BRRR (no repeat) before I leave..on an actual good deal? (Let me know if you know of anything...)

Please let me know if you need more information that I've missed!

@Michael S. Thanks for pointing me in the right direction.  Do folks typically post their newbie posts in there?  ie should I also repost there, or just proactively look for opportunities to network?

@Robert Ellis I've responded to your PM, looking forward to meeting.

@Jesse Cabot Sounds great, happy to chat once I'm in town.

@Phil Mcnally appreciate the reference!

Looking forward to heading out there!

Hi All,

It's great to finally post my "new member intro," after months of podcast listening and preparation!

A bit about me: My name is Beda, I live in Oakland and do Enterprise sales for a technology company.  Before I discovered BP, I purchased my first condo in 2013 in Oakland to live in.  Wanting a bit more space, I purchased a bigger house w/ a yard in Oakland, and began renting out my condo to a couple of great tenants.  

Fast forward to a couple months back- I discovered BP, started listening to the podcasts and was exposed to this entirely new world of systematized & calculated real estate investing.  Applying these learned concepts to my first two purchases, most folks would likely not consider them "good deals"; luckily, Oakland has been a hot market, so they've appreciated quite nicely.  

I feel that the skill sets I've developed and use everyday for my sales career lend directly to being a successful real estate investor: I have a hunter mentality, I work hard but smart, and pretty much everything I do revolves around building, managing and closing out pipe.

So I'm committed to pursuing long term buy and hold, BRRRR if possible, in Columbus, Ohio. I'm in the process of pulling some equity out of my houses via refi, and will take the money to invest out there. I've booked a trip from 10/17-10/22 to look at, and hopefully make offers on, properties in the area.

Would love to connect and network with active folks out there - be it investors, agents, lenders, contractors, property managers, etc.  I hope to get a ton accomplished in my short amount of time in the area, and soon establish a repeatable process to continually invest in this area!