All Forum Posts by: Bryan Robinson

Hi Everyone,

This just came on the market today in Bend, Oregon. It's a 5 bed 2 bath 1485 sq ft home on .27 acre lot in SW Bend. It is bank owned and needs roughly $60,000 in repairs BUT resale is about $325,000 and with the hot market up here this will go fast. I've included a break down below of what it would cost to fix and flip or fix and hold, either way works for a property like this. If interested I have contacts to contractors and realtors that can make this flip happen!  Send me a PM if you want more information and a more in-depth price detail.

Cost: $180,000

Repairs: $60,000

Realtor Fees: $19,500

Closing: $5,000

Tax: $5,000

Holding Fees: $3,000

Sale Price: $325,000

Profit: $52,500

Bryan T. Robinson

Thank you Joe, after running the numbers a refi would not make any sense because there would be no cash flow with the new loan payment amount. After closing I should still have $12,000 in reserves for the next purchase, and I'll have to save at the level I am now to purchase a new property 1-2 years down the road. Thank you for your help!

I guess I was thinking about 10% to cut down the monthly payment and PMI to generate at least some cashflow but having looked at it the difference is ~$100 between 3.5% and 10%. In that situation I guess I wouldn't have to refi after one year because of the amount I save going the 3.5% route.

Hi all,

I'm looking to buy my first duplex and had some questions about the process of refinancing out of an FHA loan after 1 year of occupancy. My situation is this I have 10% saved up for duplex in either Oregon or California. After purchasing and living in the property for one year I want to purchase another multifamily in the same area using equity I've built in my first duplex. How do I refinance and if so what would my monthly rate increase to? Is it possible to maintain the FHA loan status but refinance using equity into a 20% loan to avoid PMI? What if I wanted to move out and do another FHA owner occupied loan, would I have to refi into a conventional loan? The way I see it I have a possible deal in Redmond OR or Riverside CA both $225,000 each rent for about $1050 a month. I also understand the current value for both is about $275,000:

$2100 GSI

$126 Vacancy

$1974 Operating Income

$987 Expenses

$987 NOI

$909 Debt

$78 Cash Flow

This is at 10% FHA with PMI. Now what are my options when I refi after a year? Will my new loan be based on the market value (~$275,000) because based on the new rates the property would generate negative cashflow ($1115/month P&I). What would you suggest I do, am I missing anything? How were other people able to acquire their next multifamily after house hacking their primary residence using FHA? Thanks for your help!

Bryan

Hi All!

First off thank you in advance for all your help! BP has been a gold mine for me as a first time buyer to get on the path to wealth! I plan to begin my investing career next year and have several different options to choose from. I wish to hear your opinions on what you would do in my situation! 

Currently I have $21,000 in the bank for a down payment. I'm saving at $1,000 a month. I live in SoCal but want to move to Bend/Redmond Oregon to be near family in the next year. I want to buy a duplex for $225,000 in Redmond either as a investment or a live-in house hack. I also have the option to put money into a 6-plex here in Costa Mesa with a few partners. What should I do!!! In my view I have three options:

1. Invest in the 6-plex for about $25k and get a ~2.5% equity position. Then save for a 3.5% down FHA loan in Redmond, rent the other side and refi after a year into a conventional loan.

2. Don't invest in the 6-plex, save for conventional 20% down and save on PMI for the Redmond duplex.

3. Don't invest in the 6-plex, go FHA for the duplex then refi to buy another duplex in 1-2 years in Redmond.

I've spoken to local lenders who can do a 4.5% interest rate at 20% down, but with closing costs it's close to $60k! FHA is more expensive monthly with PMI, but I can get in for only 3.5% down with the eventuality of a refi to conventional a year later. Basically with FHA I would barely break even on my first year with negative cashflow given refi costs. If you were me given this situation what would you do? Am I overlooking something here? Is there an option I'm not researching? Thank you so much for your input, I really appreciate everything BP has done for me.

Bryan

Hi Chris!

Thank you for your response! I will contact you shortly regarding your recommendation. 

Bryan

Hi Linda,

Thank you so much for your reply! I will be sure to reach out to them, thank you for the recommendation.

Bryan

Hello Everyone!

I'm looking to move into the Bend market and am seeking an agent who knows the area. A little about me, I'm new to investing in real estate and have been doing a lot of research for the Bend area. I plan to buy class c small multifamily properties in class b areas. I know supply is low, but despite this new duplexes seem to come up everyday. I plan to use personal funds for the down payment with a 30-year conventional loan and use the property as my personal dwelling for at least one year. 

My ideal agent will be one that has experience working with investors in the area. Preferably one who has invested in small multi-family properties themselves. A computer-savvy agent is a must as I will look to submit electronic offers. 

If anyone has a positive referral to an agent in the Bend area, please contact me. I would greatly appreciate any insight you have on the matter. Thank you

Hi Paul! Yes anything you need to know about property management I can certainly help you with. Congrats on owning at 19! Talk soon.

Hi all,

My name is Bryan, I'm a property manager of 212 rental units in sunny Southern California. I'm looking to buy my first investment property using savings and conventional loans. I have over two years experience in the real estate business ranging from leasing, finance, marketing, and maintenance. I've always wanted to own my own property before I'm thirty and would love to hear some tips and tricks from others who made their first purchase before the big 3-0! My target markets are Bend, Oregon or Portland, Oregon (my home town). Any information would be greatly appreciated and I look forward to interacting more with all of you on the forums. Bye for now!

Bryan Robinson