All Forum Posts by: Carlos Ptriawan

Hi Duke, Burns Research has paid survey/research on this area but their data focus more on SFR and entry level Apartments only across all the metro.

ps: finally a very serious thread available in Biggerpocket 

where to store your cash ?
short term investment: invest in hedge funds followed portfolio. I can do 0.5-1% most of the days.
long term investment: invest in portfolio of SFR/MF in CF/appreciating market.

One thing for sure, most millennials will become renters forever due to a massive student loan and other debts. I checked the Cleveland market, SFR price will increase 20% in the next few years while rental can't catch the curves meaning the demands for SFR owner-occupied is higher than rental. There's a good sizeable rental yield in the area, stable at 9%. For me, I'll buy in the area, If the market drops I'll buy more.

Vince, inventory is low everywhere because there's a record low-interest rate in history. Since bond investment is virtually zero, all this new money is going to investment that has better reward/risk namely stock market and real estate/property. The affordability index in your city is still quite okay compare to another market so there's still a lot of room to the upside. 

it's basically the ratio between the income and all fixed debts/expenses. There're many calculators available. Almost every lender looking for 1.25DSCR. 

There're several ways: some banks can do cross-collateralization between assets so you don't have to sell the other assets. Some banks can use 100% rental income as long as it has a tenant/lease in place. 

What you can do: talk to your local bank or Credit union; OR talk to a mortgage broker (but they will charge you a fee, usually 1%). Call them one by one. 

What you need to make sure of is the new asset, if at all possible, try to reach 1.5DSCR. Most banks require at least 1.25. I myself don't buy if it doesn't have at least 1.8DSCR.

Burns Market Research (for MF/SFR only)

Tyler, reduce rental yield means higher and increasing appreciation as the profit factor for new investors reduced. The difficulty in our conversation here is I'm referring to a particular set of data that only a few subscribers can read while you are not reading this.

I think you're too much into opinion while analyzing past observation -- it's not wrong but it's not accurate either--, while in reality, things are started to change especially due to low-interest rates and massive refinance in the market. Use data whenever possible.

You could take a look at the Zillow home index. Most  CF neighborhoods already appreciating and has a better future projection. When you're buying at the right time and the right location, you're all set.

I'm only trying to say 'there's a potential goldmine out there but most people don't see it yet until too late'. You need to factor more macroeconomic and analyze the future. They're the actual engine growth for appreciation and job markets.

I follow this Lane guy :) I'm from Bay area too and love buying out of state. At first, I visit some properties and meet the turnkey company that Lane introduced to me, after that I bought from multiple resources,Roofstock,MLS, name it. I never visit it again. I bought in multiple states, almost nationwide.

I'm not worried as long as it has a tenant and a good inspection report and as long as the bank willing to finance it.

Your question is similar to "do you expect to visit every company HQ after you bought their stock ?"...obviously no. 

Tyler we're talking the same thing. Appreciation can not last forever. However few sure things that will happen:
- we will become nation of renter because The Fed is printing money and those money goes to the stock market and ultimately real estate
- 1% Market in Alabama and STL will be sure going to be 0.8% market in next few years, there're already changes compare to a year ago before covid (before massive low interest rate in history)
- In your Orlando market, up until 2015, the typical R/V in your market is 0.8;  today it is 0.6-0.7 with affordability index of 31%. This is the same as in Silicon Valley market where affordability is 33% and R/V index is 0.6. 
- There're MASSIVE BUYING as of today in some cash-flowing market, ask your local PM if want to find out
- In most cities, the rental yields projection are going to be lower which means appreciation is going up.

Those High CF market can generate better IRR than appreciating market if executed property.

Summary: The trick is to  buy in CF market that's going to appreciate could generate buying the same amount of money in an appreciating market that doesnt have CF if executed and chosen wisely. IRR is your friend. There're a certain type of housing that will generate even better IRR. 

I suggest for this kind of question you analyze yourself based on hard factual data based on some tangile research. If you have to pay, it's worth it. I made my decision based on this. People opinion doesn't generate return but data will generate return. Try to use IRR rather than CF/Appreciation alone.