All Forum Posts by: Ben Kwan

Looking to buy small multifamily homes (from duplexes to fourplexes) in Gwinnett County, GA.  Cities of interest include Lawrenceville, Duluth, and Suwanee

Hi All,  I really appreciate the insight shared here, it's extremely helpful.

I've been unsuccessful so far in acquiring an out of state investment property, often losing to all cash offers, even if my offer was higher. I'm exploring a HELOC on my primary residence to allow me to also make a cash offer, but, my plan would then be to do a cash out refi. If I didn't, I'd been dependent on a variable interest rate for the HELOC.

As mentioned in this thread, one downside of delayed financing is the closing costs; my understanding is I'd pay them twice - once on the initial purchase and again on the refi. The LTV will be in the range of 70-75%, and is subject to another appraisal. That means even after the cash out refi, I'm responsible for 25-30% (is this any different from a 25% down payment with a conventional offer?)

Besides it being a cash offer, are there any other advantages in this compared to a normal offer using a conventional loan?

Alternatively, are there any other strategies I may be missing that could be helpful in combating all cash offers outside of HELOC to delay financing?

Very insightful thread. I'm looking to start investing out of state and sounds like an umbrella policy will cover me initially. If I continue to grow, then I can explore starting LLCs (likely one holding and others in the state of the properties) - my question though, is how difficult will it be to transfer title to the LLC and retain the personal financing that was offered to me? In addition to each state transfer taxes, I've read there may be a due on sale clause. Another obstacle I just ran into when speaking with a bank is that I'm told my LLC would have to demonstrate 2 years history of sufficient income to qualify. Is there a good way to address these or do they just vary by bank?

Hi!  In a similar situation, appreciate the help!

Thanks all for your input.  Noted on gambling on appreciation as well as considering a possible correction coming in addition to vacancy.

@Aaron Kaplan - I completely agree with you in Downtown Oakland, Temescal, or Emeryville being better options in terms of demand, but they may already be too hot.  I've looked at Oakland and had it been a few years back, I'd definitely be able to buy, but not anymore; that's one reason I looked at San Leandro as it's starting to get "hot" as a lot of the surrounding cities may have peaked.  

Hi, I live in the Bay Area and like many, am priced out of most markets here.  With that said, I'm exploring a townhouse in San Leandro for about 450K.  It's a 3/2.5 and probably can rent for about $2500/month.  I may be able to obtain a conforming loan with about 5% down at 4.75%, and running the numbers, I'm seeing about a negative $400 cash flow per month (which I can tolerate for a few years, I'd guess).  This, of course, isn't ideal but given the small down payment and likelihood of appreciation, is this a good play?  The other consideration point is, this may be one of the few remaining opportunities for me to buy in the Bay Area the way things are going.  I'd say it's an investment first, but also an option to be a primary residence if needed in the future.

Appreciate the input, thanks!