All Forum Posts by: Timothy Chi

I did send zillow data. We even had comps close to 4000. However, similarly to buying/selling, they don't look at active inventory as much. They focus on closed listings. And unfortunately only property managers post the closed listings on the MLS. For mom and pop investors, we post it on zillow then take it off after we find a tenant. So technically it isn't a "closed" rental listing. So the appraiser doesn't see that.

I did send a lot of information to the appraiser. Data through zillow/FB marketplace, competition for my rental, etc. 

I agree that sometimes they don't use the best comps. The comp I used in determining the properties ARV was not even considered to the appraiser. This has happened multiple times on the buying and selling side of a transaction (I'm a realtor).

I had the same issue. The ARV came in higher than expected, which was nice. I put new tenants in at 3200/mo but the appraiser said fair market rent was 2700. Public listings like Zillow/FB/apartments.com/etc all support my 3200 (which is why I chose that number in the first place). I contested it and the appraiser bumped it to 2900/mo. The issue was the appraiser only looked on hte MLS, which is where property managers post their rentals and show "closed" listings. Whereas zillow only shows active listings for rent.

I don't know if that is the norm across the country but, in the future, I'm going to run numbers based off of what I see on the MLS and not what I see on Zillow. It's aggravating because we know we can get rent for higher but apparently that's not how the appraiser operates in my market.

Hi there, I invest in Anchorage AK. 

BRRRR'd a SFH earlier this year and it's cash flowing about 500/mo. We are below market rent so it will improve over the years.

Strong rental market with low supply. 

Cash flow is attainable but becoming increasingly difficult. Easier to cash flow with value add purchases.

We have good neighborhoods (and bad). Most hospitals and a university are in 1 area and makes for good rentals (STR/MTR/LTR).

The downside is we don't have good population growth. However I would say alaska is a different market than the lower 48. It's fairly stable. Average SFH is about 500k now. It's not a hugely appreciating market when compared to other west coast cities.

Feel free to reach out with any specific questions!

Hi Elaine - I was a physical therapist and have since transitioned full time to real estate. I was tired of the crap healthcare professionals have to deal with and declining reimbursements. I was in your shoes 7 years ago when I realized I didn't want the rest of my career heading in the direction it was going. 

I spent about 2 years absorbing a ton of info through books and podcasts, dialing in on my personal finances, and saving. I also started doing travel PT and learning about different markets. I don't really know when the time became "right" to buy. I just started talking to people about real estate and personal finances and then my comfort level just increased with taking the dive. I live in a market where, at the time, typical 4plexes were going in the 400-500k range. They did cash flow (and still do). 

I think several factors went into being ready: 1) I had 30k cash savings to buy a property and have enough left over as reserves, 2) I had a Roth IRA that I could access if I really needed it, 3) I had several credit cards with 0% APR in case I really needed it, 4) I felt much better after having the inspection and knowing that big ticket items were ok and that I only need to focus on primarily cosmetic work, 5) I was working full time as a PT with good income and my persoanal expenses were low, so I knew I could support myself financially, 6) my significant other was supportive of me.

I hope this helps! Happy to chat anytime with another fellow healthcare worker :) 

Isn't there verbiage somewhere about ESAs and Service animals being aggressive as a reason to exclude them from the property?

I have used Sifely, Kwikset Halo, Schlage Encode. I vote the Encode all the way. Sifely's internet connection is mostly good but can be spotty. Kwikset Halo battery life is terrible in our cold climate. Encode I have had for close to 2 years now and it's been great. For cameras - I have used Lorex, Wyze, and Ring. I held off Ring because I didn't want to pay but the other 2 cameras have disconnected from my connection frequently enough. In the end I've been using Ring for a couple years and been happy with it. No disconnects with the wifi. Worth the cost.

It took me a couple years of self education and fine tuning my personal finances before I started investing. That may be the slow route to some but I think it's important to dial in your personal finances and have excellent defense in your financial situation first. Not having good finances personally, will lead to poor financial decisions in a business. My recommendation is to start budgeting your personal life and tracking your expenses. At the same time that'll allow you to save up what you need for a down payment. In my market (Anchorage), 25-30k cash savings should be able to get you into a small multi family home.

That's cheaper than my CPA

 That's awesome! I invest primarily in anchorage. I haven't ventured out to the valley yet because I've still been happy with the opportunities here in Anchorage. Feel free to connect if you are ever in town!

 Hi Jed, I invest in AK and find that there are deals to be had. To answer your question about maximizing profitability: I choose to invest for equity and forced appreciation. That being said, I'll still hold onto a property if it cash flows $0/mo because I'm still getting principle paydown, appreciation (market + rental), depreciation/tax benefits. When I get to the point I can start scaling back, I can sell these properties off for better cash flowing properties because I've built up so much equity. I think investing for cash flow to start is a slow game.