All Forum Posts by: Charles Renn

Hi guys, there is a lot of great feedback here. I'll repeat how essential it is to work with a lender and agent that is knowledgeable and has a proven recent track record. Not that volume is essential, but exposure to more deals equates to having a pulse on the market and being able to negotiate/communicate effectively. My last thought is that there is a shift in the market currently, so keep your hopes up, there are duplexes out there! Hope this helps!

Hey @Demetrius Pettway,

There are many benefits from real estate ownership besides cash flow. It comes down to what your goals are in general. I'm no accountant but the tax benefits should be considered here as well as equity, even if it's small. My last bit of insight here is that don't think of your first investment as your best deal, but something that builds momentum and gets you in the game.

Hope this helps!

Hey BP family,

It seems that the Pocono's has a lot to offer for investors looking at STRs. Since I have yet to buy in the market, I am hoping to get some feedback from local STR investors as to how their properties are doing. I've connected with a couple management companies which have been great in their own regard. My main concerns are market saturation for STRs and what to expect regarding seasonal occupancy/daily rates. If you have any resources you're willing to share, much obliged. Perhaps there are areas that you'd recommend within the Pocono's that I should focus my search.

Thank you in advance for your thoughts!

Hey @Cesar Cruz,

Taking the first step in real estate investing is a big commitment. You have a number of points of view here, but it will come back to setting your goals; including why/why not now is the time to buy, do you want to move into this next home or invest? where?, how much money do you have to invest?, do you want to add value/buy distressed properties?, the list can go on. If you find yourself easily answering these questions, then you'll know whether it's time to move forward, or set the goal of what that timeline looks like.

Hope this helps?

Hi @Nancy Lim,

Congrats! You look to be doing well in the REI game. There is a lot of good advice here and here are my thoughts. When it comes to STR vs. LTR there are a few things to consider. 1. How much hands on experience do you want? STR typically involves more time and energy, even if you have property management. The most successful STRs have the "personal touch." Property management for STRs can be expensive and eat into your cash return. My last thought on STRs is market saturation. Not to say we've peaked here is SoCal, but it's always best to pencil out where or not your STR at least breaks even if you have to pivot to LTR due to market or regulation changes.

Hope this helps and best of luck!

@Devon Yates, it does sound like staying in this deal is a good idea. When you say the lender is onboard, do you also mean the rate lock has been extended well into the future? I know having to extend rate locks can be expensive. However, when comparing to the appreciation you've gained, it shouldn't matter too much. Just something to consider.

Hey Su,

This is tough. I'm assuming he hasn't broken the lease, but is just not welcome to live there, correct? The best thing I can do is recommend you talk with an eviction lawyer. If you're interested in the referral, let me know! 

Hey @Bryce Platz,

This shouldn't be too tricky. Escrow terms do change often. Checking with your agent/broker is the first step, but I'd simply just send over the "seller in possession) "SIP" form that both you and the seller sign stating the terms. It's just over a week, so if you want to close early, and the seller is onboard, perhaps you make it easy and cover the expenses? There may be an addendum needed as well, but it's pretty straight forward.

Hope this helps!

Hi @Eric Grunfeld,

The market for small multi-family is extremely competitive at the moment and I think it will be for the foreseeable future. Because of this most of the investor my team works with come at it from the house hack angle, as Rick mentioned. Live in one unit and rent the others, using a low down payment loan. Using this strategy provides a low cash investment up front, but trying to cash flow or break even can be a challenge. If you have some capital saved up a house hack could incentivize you due to it's low interest, lower than an investment loan. 

Without dragging on to far here, the main point I'll make is that your expectation when getting into 2-4 unit investing in SoCal, is expect it to take a few years to break even and/or cash flow and play the appreciation strategy. 

What do you think?

Hope this helps!

Hey @Anthony Napoli,

Welcome to BP! @David Greene is hosting our team meetup toward the end of next month. It's open to the public and tickets will go on sale here in the next week. Let me know if you'd like to get an RSVP.