All Forum Posts by: Christina Labowicz

@Bryce Outcault 

You have a nice situation on your hands! 

I would suggest ruling out the option of leaving it as it is, as to capitalize on the real estate game means to continually evolve. 

We work with many investors who started with a SFR or 2-4 unit and kept trading up until they owned 50+ units.
Its in your best interest to not let your equity get lazy and rather to reinvest the equity into more units or to exchange into more units. It may be advantageous to talk to a lender and weigh the pros and cons about the different options.

Either way, time is leverage so the sooner you can acquire, and the more units the better. 

If you look at simple cash flow, if you implement a $100 rent increase every year on your condo, you have one unit that brings in an additional $1200 annually. Whereas if you reinvested into a triplex and issued $100 rent increases, you would have an additional $3600 annually.

As @Jason Graves mentioned he started with condos and now has 87 units (awesome!). Although California is discussing rent control and it looks like it will most likely pass, it just means that we will need to work within the conditions, but there is still money to be made and its still probably best to invest in an area that you're familiar with. 

Chris, my business partner and I own units in San Diego and work as commercial brokers for multi-family investments. 

We would be happy to meet up sometime!

I live in Mission and our office is in Mission Valley.

I'll shoot you a PM. 

Thanks for initiating! Looking forward to it.

Hi Wilmer, 

What about the Arizona and Texas markets interest you? Have you thought about investing in San Diego? 

Hi Constance, 

I like the San Diego market as there is a strong economy and will always typically be a strong rental market. 

The high home prices make it so only the top percentage of workers can afford SFR, which leaves a large portion of renters. The weather keeps people coming in, unlike, say, Detroit, and we have 4 hard borders, being Mexico, the Pacific, the mountains and the military base, Camp Pendleton. In terms of coastal California towns, we are still very affordable and have much room to grow.

I recently put clients into a 4 unit for $712,000, non-owner occupied, they had a little bit more to put down than you do (they had $180K) but it shows that it is still doable here in San Diego. Since it sounds like you're already familiar it might not be a bad place to start! And its just a hop away from Hawaii. 

Hi K, 

Who are you using for lending? The 4.75% sounds high, rates are low right now. I was quoted recently under 4% for a 10 year fixed. 

Are you able to do some repairs/TLC?

If you buy turnkey you won't have the cash flow as you would have by fixing something up, so its a toss up between having to put in work and reap the rewards or gaining something easy. If you exchange into a parallel cash flow you'll still be in a better position as you will have more units to do rent increases on and eventually will be far exceeding what you have now. 

@Ryan K. I live in Eagle as well, my partner and I would be happy to meet up this weekend or sometime next week if you are free? @Paul Hamel @Shelley Slater

This is a single wide trailer, manufactured in 1974, it is in a suburb of Vail and on the market right now for $179K. A similar mobile home down the road is on the market for $250K and those are the cheapest properties for sale within miles. The owners are delinquent on their 2016 taxes so we would put in an offer of about $87K, make it livable again and put it back on the market, probably around $210K. It is on its own piece of land, surrounded by other respectable mobile homes but not in a mobile home park. On a small stream, a nice .18 acre parcel of land. Again, this would be our first investment so we're just trying to go through the motions to see if this would even make sense.

I'm not sure if this link will work but the listing is here if you're interested, its a few listings down.

http://loginlax.rapmls.com/Reports/ReportViewer.aspx?hidMLS=VAIL&emailReportRid=1861449&hidEntryPoint=ME&Search_RID=

Trying to bring all the pieces together for my partner and my first investment. We found a mobile home in the area which we are interested in rehabbing and flipping. The private/hard money lenders we have come across do not lend for mobile homes, does anyone have any companies that they would suggest? We found one which will lend based on points, a $60K loan for $6K worth of points and can have the funds ready in 4 weeks.

Given that this will be our first, every single step is new to us, does anyone have any suggestions on the type of lending we should be looking for? Is the point system best for this type of deal or should we be looking based on interest rate. We plan to buy, close and flip no longer than 6 months duration.

Thanks

Christina

Hi Ken, are there a few that you could recommend for the purpose of flipping? I am having trouble finding financing for a mobile home I'd like to rehab and resell.

Thanks,

Christina