All Forum Posts by: Dane Moreton

They have made a lot of mistakes, are not transparent, don't know what is going on with properties, are not good at communicating well. They have a property that has been in renovation mode for over a year, but they are still selling shares for it with no plan on how or when to get it rented and creating dividends. So, I am not impressed, and would not recommend at this point.

I jumped in this week. Interesting business model of just paying interest indefinitely and paying out dividends from rent. We shall see how it goes. They also offer Lend, which lets individuals get the mortage interest rate (currently 8%). But it has to be locked up for 3 years to get 100% returns.

Who knows what will happen:

"On the bright side, Morningstar’s housing report predicts mortgage rates declining over the second half of this year. They anticipate an average rate of 6.25% for 2023. This will be followed by further decreases to 5.00% in 2024 and 4.00% in 2025."

 Thanks, Tristan. I certainly intend to do my due diligence when purchasing a property. Those deals may just be harder to find at my price point with my criteria. I can only control what I can control, and hopefully I can make a sound decision that will have few, if any, surprises. 

Thanks, Ned. What makes me think the rates will come down is that the Fed has been raising rates to combat inflation, and there is a possibility of a recession still looming (though it has admittedly been looming for a while). Then, rates would almost certainly be lower, but, again, even experts are wrong about this stuff all the time.

Thanks, Jason. I have great credit, and went to 3 different lenders (will go to more) and this is where they were on their APR's. What options do you suggest for lower rates, besides a higher down payment? What would you say is a good rate for an investment property purchase in today's market?

I'm looking to get into my first property as an investor; specifically, a SFH rental. I have $40K for a downpayment, but, as this is an investment property, I am looking at 7.125% APR with 25% down, or 7.5% with 15% down, and 2 points. I am in TX, and the market I am looking to buy in, the median home value has decreased by 3%.

The strategy right now is to build equity and cash flow income (on this, then other properties) until I can get a 25% downpayment for a triplex or fourplex. 

My question is, with these current interest rates, does it make more sense to wait until they come down (when prices may likely rise becuase of it) or jump in on a good deal on a home, with the possibility of refinincing in 2 years when rates will most likely be back down?

Of course, these are assumptions here, but wondering what the experienced investor would propose in this situation, with the current funds in the current market, with the current strategy.

TIA!

 Would this not be covered by home insurance?

Thanks, Malcomb. That makes sense. I am still waiting to hear back about this property, but its an early 1900's building, so it could get slippery. I just need to be informed of the updates or lack of that I am working with, but I'm eagerly awaiting more information.

Doing some research and analysis after reading some of the Bigger Pockets Rental Kit, specifically the Capital Expenditures section. The book was written around 2014. The author has the monthly capital expenditure costs at $182.75 and I think this is just for a single door, some expenses could be rolled into a multi-family unit. But, in the numbers I have run for 2023, I have $319.77/month. Does this sound about right?