All Forum Posts by: David Barnett

I prefer to stay at a hotel.  Call me old fashioned, and I know what I'm getting when I book at a certain hotel brand.  It makes for a more uniform and predictable experience.

@Nate Sanow Thanks for the insight and for sharing your thoughts on the pockets for appreciation in Tulsa.  You mentioned different neighborhoods, and was wondering if you'd mind sharing spots within Tulsa and/or the south suburbs (BA, Jenks, etc.) that are solid B areas?  I'm looking hard at the Tulsa area to diversify into, and also happy to discuss via PM or a phone call.  Thanks!

I agree with what everyone above has said.  With that being said, I'm no longer interested in investing within the city limits of Minneapolis or Saint Paul.  However, I'm planning to hold onto what I have in those two cities and see if the appreciation wave comes through as I expect it to.  My hunch is that there will be pretty heavy price appreciation in Minneapolis and Saint Paul that mirrors what happens on the coasts (the places with more restrictions seem to have higher cost to own property, and that is definitely the direction the Twin Cities is heading in).   

@Sandesh Ghodke

What's the current interest rate on the loan? Was it a 30 year loan? Based on the numbers, it looks like you were making extra payments on the loan while you lived there? How much is the HOA fee? I bet you can get that mortgage payment down with either a rate and term refinance or recasting the loan. I ran some really quick numbers and I don't think you'll be making a ton of cash flow on this property with a $1,400 mortgage payment, and would be careful with a HELOC, as that might run you into the red. Last comment is I would be careful trusting the Zestimate on Zillow (can be way off). All of this being said, it likely depends on the area and the long term growth/appreciation of that area whether you choose to hold onto it or sell it.

@Cory Pflipsen A very interesting perspective and thanks for sharing.  If you don't mind me asking, where are the majority of the rentals in the suburbs.  I was wondering if it was the west metro where prices seem to be a little higher.

As Daniel mentioned, an $80k downpayment would likely get you a property in the $300k-$350k range (assuming some money set aside for closing costs and reserves), assuming you are bankable.  

I'm on the West 7th Neighborhood train. I also like west of Cesar Chavez in Riverview (and ideally west of Robert N), streets like George, Robie, etc.

@Erika Rogers Some great advice by @Mitch Messer. As an add on to Mitch's list, I also noticed that you were missing larger Capex items (roof, boiler, water heater, siding, etc.). If you are setting aside 10% for maintenance (and the property is newer/updated), it's likely a portion of that amount could be for capex and the cashflow might be a little less than projected (please take this with a grain of salt, as I'm just starting to look a bit at Tulsa and have no basis for repair costs, only historical costs in the market that I currently invest in).

I did want to mention that you might want to shop the rate with other lenders/a mortgage broker.  Are you using a mortgage broker, or a loan officer at an individual bank?  Assuming you'd be looking at a 30 year conventional loan (non-owner occupied), my anticipation is that your rate would be in the 3.25%-3.5% range (I just refinanced yesterday at a 3.75% in an entity, which is always more expensive, rate wise).  

@Tiffany Reguera What's your plan for where you are looking to build a portfolio?  From your description, it looks like you are buying "one-offs" in different locations, and I'd recommend picking a market and building up a portfolio there.  With focus, you'll be able to understand the market, build a team and likely be able to negotiate preferred pricing based on volume.  My personal opinion is that buying "one-offs" is very inefficient from a management point of view.

@André Anderson Might be able to weigh in and provide some guidance on what he's seeing in the AirBnB/VRBO market.