All Forum Posts by: Dallas Regimbal

@Andrew M Amezquita You don't go into detail on what kind of deal you're trying to analyze such as a flip, STR, LTR, etc and it sounds like you're just getting started in real estate investing. So based on the information you provided I would advice watching some episodes on the BiggerPockets YouTube channel. There are several episodes on going into details on numbers of breaking down all kinds of deals. BiggerPockets also offers a tools for analyzing deals for Pro members I believe you can try them out a few times for free without signing up for Pro membership. I hope this helps!

@Taylor Bennett I believe it depends on your current situation and what your long term goals are. If say, your goal is to buy and hold long term rentals that cash flow, then as long as the numbers work when you purchase the property you'll be fine. I would recommend to always searching for deals that fit your criteria and long term goals so that you don't miss a potential opportunity. This will help you to achieve financial freedom quicker and more efficiently than  trying to potentially time the market. I hope this helps!

@Jorge JuarezI would recommend if you do go the short term rental route to be sure you do your due diligence and be sure the numbers would still cash flow as a long term rental. This is because you never know what the future hold as far as zoning, laws, and regulations go with STRs every market it different and subject to change. It would be a good idea to ensure the property you purchase will be positive cash flow for both STR and LTR to limit your risk. I hope this helps!

@Van Tran Mobile home parks as an investment have become very popular in recent years and can be a good investment. I would say in your case since you're wanting to buy land and then turn it into a mobile home park you'll want to do due diligence on looking into not only zoning and laws but also the supply and demand of mobile home parks in the market you're looking to purchase the land. For your next question regarding if you should keep or sell your rental property, I would say it depends on your long term goals. If you are wanting to continue investing in rental properties as well as mobile homes them I would suggest keeping the rental and using a loan to purchase the land. This of course is only if you have done your due diligence and you know there is demand to justify your numbers and it aligns with your long term goals. I hope this helps!

@Lauren Quest As with most real estate investment purchases, it really comes down to the numbers and your long term goals. There is opportunity cost involved with putting down more cash on a property as is lowers your ROE (Return on Equity). That cash could have been used to purchase another investment property and help scale your business quickly. I would say as long as the property covers most if not all your mortgage and will cash flow when you move out while only putting down 3% and paying PMI I would go that route. As I said before though, it all comes to the numbers making sense for your situation and your long term goals. I hope his helps!

@Yixuan Du I would recommend going to local Real Estate Investor meet ups in your market to meet like minded individuals like yourself who have already done what you want to do. You can grow your network of not only other investors who could potentially become partners if you bring them a good deal, but you could meet real estate agents there who may have clients looking for partners on deals. My best advice is to go out and network as that is a great place to start, I hope this helps!

@Andrew Etzweiler I would say it really depends on what the numbers looks like for each option. For example, What is the difference in cost between building a detached ADU in option 1 and sectioning off 2 bedrooms plus 1 bathroom for option 2? Does option 2 require you to add a kitchen once you know that it will give you a better understanding of your ROI for each choice. Also for option 2 I believe there is a demand for short term rentals in White Salmon, WA given that is very close to Hood River, Oregon but you'll want to check what others STRs are getting to help determine what net operating income you can expect and use that to calculate your ROI. In most cases if there is the demand in your area for STRs it will beat out the LTRs in net operating income but you'll still want to make sure it cash flows as both a STR and a LTR to ensure you'll always be covered. In the end, I recommend option 2 if the numbers work for you and your long term goals, I hope this helps.

@Kellan Martz Based on the information you provided I would lean towards options A or C. The reason being that if you have sold comps that show you could sell it as is for $65,000 and it would cost you $11,300 for both interior and exterior painting. While the comps with it repaired only sell for $75,000-80,000 that only gets you an extra $10,000-15,000, even with potential tax write offs your ROI would not be great. However the reason I like potentially C is depending on if based on comps you know that doing the repairs would allow to increase rent and based off that number you could calculate your ROI and decided from there. At the end of the day I recommend choosing the option where the numbers make sense for you and your long term goals. Think back to your long term plan for the property when you purchased it hopefully this helps!

@Broc Mayo I would say that one of your best options as a first time home buyer who is looking to house hack an either a FHA or FHA 203k loan. This would let you get in to a property at a low down payment and possibly have value add opportunity where you could build equity quickly. I would advice speaking with an investor friendly real estate agent in your market and see what lenders they can recommend who they know are familiar with and have done a FHA loan recently. Of course, you'll want to be sure to speak with multiple lenders to ensure you get a great rate but working with and lender that knows the process of a FHA loan can make a big difference.

@Terra Joa Yu I am sorry your first experience in real estate investing has been a bad one, but I'm glad you are not giving up and that no matter if you sell or not you are wanting to continue your journey towards finial freedom by building wealth investing in real estate! I want to dive into the numbers a bit first so we are on the same page. The new rents total $3790 a month for both sides and the mortgage (2.875% which is a great rate), taxes, insurance are $2465 combined correct? Then property management is $250, then setting aside 5% for vacancy $189.50, and setting aside 35% for expenses $1326.50 totaling $4,231 a month for a negative cash flow of $441. Of course, I'm not sure what you were setting aside for vacancy, repairs and capx so our numbers could be different. What numbers were you using for vacancy, repairs, and capx when you were looking at the property to purchase, and what have they been since you purchased? What sort of repairs have been coming up each month? I just want to get a full scope of your situation in order to give you an accurate opinion. I do believe this property looked like a good deal when you were factoring in living there as an owner occupant, but it may not have been a good deal for when you moved out and turned it into a rental on both sides. There is a great episode on house hacking with Chris Lopez where is talks about analyzing for both on the BiggerPockets YouTube that was just uploaded yesterday I recommend watching it for some extra insight.