All Forum Posts by: Charles Oglesby

Good point 

I have been coming across a lot of non motivated seller deals in Las Vegas and So Cal that are distressed but only discounted for the amount of repairs.  This doesn't leave a lot of room for profit for guys like me who don't plan to get in there and do the work myself.  I would still hold it for rental income but there isn't any instant forced appreciation.  

An example is a duplex that needs a complete rehab.  It is listed for 85k and comps in the area are about 120k.  It needs about 40k worth of work though.  Since this deal won't allow us to refi out any profit is it worth the time or should we pass? 

Thanks. 

Great advice. Thank you all for your input. 

I have been on the market for lower priced properties across the country and one problem I keep running into is banks and private lenders who don't want to make smaller (less than 50k) loans.  I know that there is a solution to this problem that doesn't include going and asking friends and family for money.  What do you all suggest? 

I live in CA and everything out here is overpriced.  I have found that if I were to purchase the land and then build I might be able to get more value because I can build higher and put more units into the lot.  

My question is whether people would consider building your own rental property a better or at least a viable strategy as opposed to trying to talk unrealistic California owners down in price.  

I am in the process of looking for a rental in CA and I think this is a smart way to go about it. There may be people who tell you to go bigger but you can't go wrong with something that could put an extra grand in your pocket while paying for your mortgage.  From my research it looks like you have to live in the property for at least one year before moving.  On the most recent BP podcast he talks about how he is moving into his 5 house in four years.  He didnt go into details about the financing but its safe to say he did exactly what you plan on doing. I say go for it. 

Multi family real estate is booming right now because many people who were owners at one point in time are now being forced into renting.  As the market adjusts do you see this causing rents to decrease and if so what is the strategy for investors when this happens? 

I live in CA and rents are sky high in areas like Orange County and Los Angeles.  This can only last for so long and soon people will move from renting to buying.  If your property is cashflowing now with inflated rents how are you going to cope when you have a property operating at negative cashflow? Are people concerned about this? 

 I've been seeing a lot of pre construction deals online. What made this a bad deal?

Great information. Thanks @Oren K.

We are looking for something low cost but that cash flows. We are all in CA and don't know that area that well we just know most of the real deals are out of state. We having a hard time analyzing out of state deals though because of how different the CA market is.