All Forum Posts by: David S.

Hey folks, curious what you'd recommend in my shoes... I have two rentals at the moment, both SFH's. These were bought with savings rather than financed. I have the option of lending against my primary which would free up $400-500k, but I'm wondering if it doesn't make sense to get involved with syndicates here and now, rather than do years of single family homes first, only to gravitate toward multi-family eventually anyway? I have a background in finance and have held a number of licenses, so I do believe I'd be deemed an accredited investor by default, which helps. Certainly have an interest in syndication, but I see how competitive that space is, and I have systems in place for more single family homes.

What factors would you consider? With what I just said, what would you do? What is the best route into syndicates (other than the obvious networking). Thanks

@Patrick Bavaro I'm struggling with this concept. It's not that I don't understand it, but why would said builder sell these for $265 if they're appraising for north of $340K? Why isn't he selling closer to that? Also, I'm presuming these are cinderblock and stucco as is common in FL? Would make sense that they're able to keep their costs lower than the stick builts because of that. 

Finally, I'm assuming this is HOA and would have restrictions on STR?

Thanks! And congrats! 

I'm really surprised there isn't more talk about the long term ramifications of the REIT industry. I'm investing in KC and have watched this industry cause a run on lower end housing that's gotten quite hot all of a sudden. Rents have ballooned significantly at the same time. But they would; as Wall Street demand grows, prices rise, first time homebuyers are left chasing homes that get more and more expensive, with any deals selling on cash terms and no inspections. This causes a greater demand for rentals as many get priced out or give up altogether. They're effectively creating their own rental market, and they know it well.
I, for one, can’t say I find this to be a healthy dynamic. It legitimately makes the American dream harder to attain for many. But what I really want to hear is what people feel the long game looks like here? If I recall correctly, demographics favor the housing market for another 10-12 years, but after that we’re likely to see a shift to a gradual glut of housing (correct me if I’m wrong there). REITs will only buy homes if the returns and demographics support it; they have an investor base to cater to. I get the impression this could become the next real housing bubble where companies holding hundreds of thousands of houses all want to exit simultaneously. Effectively a long term pump and dump scenario. 
This trajectory can’t go on forever, so what does the industry look like in 10-20 years and could it be creating serious risks for us mom and pop investors? I think personally think so… 

 I guess I must admit I never checked Lowes but figured they’d be about the same as HD the which is pricy. I’ll try theirs too then, thanks! 

I’m turning my second rental and noticed that blind prices at HD are almost 3x the price of blinds at Wally World and MANards. But in turn you get a cheap product at the latter two… they work fine but they let a lot of light through. Enough light to where I wonder if it’s just inviting my soon to be tenant to drill shoddy holes all over my just repainted walls and trim to put up curtains? 

Does anybody have a philosophy of putting higher quality blinds that actually block most of the light out in their B and C grade units to prevent tenants from wanting to put up additional window dressings? I’m having a hard time justifying another $200 for blinds but it would be worth it if it made my tenants less DIY minded… 

Hi all, we're located in CO, live free in clear in our home and would like to take out a HELOC against it to start investing in the KC market. There's one problem however; we live on an agriculturally zoned property and most banks are too simplistic to loan against such a property. We're talking a 15 acre parcel right between Den and the Springs (with a traditional home on it), but we've had some trouble finding a good bank willing to work with this just because of the ag status.

I would love some leads as to who I should work with in this regard. Thanks much!  

Somebody drank the cool-aid... ^^^ 

Based on the math here, I wouldn't take this advice. ;)

I happened upon this thread in a search... now I'd like to know whatever happened @Mitchell Van Overloop

Hi @Craig Curelop, thanks for your input on this. Your advice is what I've always wanted to do, and right here in the local market. I must admit that local zoning laws have me a bit skittish about this concept. It seems a bit akin to the AirBnb model where you could be a pretty easy victim to a change in local housing laws. The other problem being that though I could afford to do something like that I would have to ax the addition plans which include a rental (MIL suite) because of the high cost of RE on the front range. And finally that puts all my eggs in the Denver basket, though that's possibly more of a pro than a con. 

I have a ton of questions for you honestly, but if I had to pick one at the moment, I'd like to know how you're able to leverage a property with multiple tenants that isn't zoned as a multi fam? I would assume this is as easy as showing the leases and receipts but at the same time I know lenders are fussy over lesser matters. Do they actually go for this? Also, what's your typical price point on such a home? 

Great advice; I'm still open to anything at this stage, so thanks for bringing that up! 

@Ian Walsh I totally agree, especially this far into an economic expansion and an election coming up that could rile the markets depending on outcome. But at the same time I'm a fan of diversification too and cost savings being that I'm already closing on a loan here and thus may as well use it to save 4% on a rental (fees) and be a cash buyer (as far as a seller is concerned), both of which improve my equity ratio out of the gate. FWIW we currently have zero debt, as in absolutely none, period. So our debt to equity ratio will still only be somewhere around 35% after all this. So that's very healthy and as much as I care for in this climate believe it or not. Thanks Ian!