All Forum Posts by: Dawn Holley

I'm in a good position for a coming recession, I have job security, savings waiting to use for my next REI purchase, and I'm in the middle of refinancing for a lower 30yr fixed on my duplex. I have excellent credit such that I could apply for a $70k+ personal line of credit. With the likely recession and rapidly changing market, should I do everything possible to accumulate cash while I can, or just sit with what I have? I may or may not use a PLOC, I think I only have 2 years before I'd have to reapply, but if prices drop such that I could have flexibility with more cash, maybe it's worth it? Interest is ridiculously high so it would only help for certain situations. I'm interested in BRRRR, B&H, not flipping. Thoughts?

I'm in Santa Cruz, CA and live with my partner, who owns the home. So this is a big factor, I do not own the home. I have an active interest in REI, my partner is a professor and perfectly content with his income and retirement plan.

I have $100k to invest, which ins't enough to purchase REI in the area, which is why I have a duplex in Oregon instead. I can start the process of locating a new out-of-state rental, however, the county where I live supports ADU's and rents are quite high.

I could invest in converting the garage into an ADU and renting for around $2k/month. I could potentially become partial owner to capture future appreciation, my partner could do a refinance and pay me back, there are likely numerous ways to make this a fair investment.

There is plenty of value in the home for a HELOC for my partner to do this himself, however due to an interesting loan arrangement, current (fantastic) financing disqualifies this option. The home would need to be refinanced at a higher interest rate in order to pull cash out.

Or, I can keep everything separate and continue purchasing small multifamily buy and hold out of state. 

COC on an ADU in the area is quite high, but I'm not sure how to legally protect myself seeing as it isn't my personal property.

Also worth mentioning, my main goal is passive income. 

Can anyone speak to this situation or provide knowledge and advice? 

Thanks!

I'm looking for a realtor in Reno, NV.  Can anyone recommend a realtor with experience both investing and working with investors?  Thanks!

Anyone have recommendations for a realtor familiar with rentals in the Reno/Sparks area?

Hi everyone! I'm looking to buy a small multi family in Medford and will be in town just after Christmas to start putting a team together. Anyone have recommendations for a real estate agent and property manager?

I feel like I'm missing something big here so I'd like to present it to the BP community for thoughts....

I have a good friend (trustworthy and afraid of bad karma) whose mother owns a few properties in San Jose, CA area. There is no mortgage, only late on taxes, about $40k between 3 properties. My friend was going through the process of buying one of the properties, a duplex, worth between $800-900k. His plan was to buy (OO, FHA loan) for about $250k and use that money to renovate one of the other properties (renovation cost of around $120k) then refinance and pay off the mortgage again. Then he got laid off and the loan didn't go through. Since his mother owns the properties, this is prop 13 and wouldn't have a huge property tax bill since he's family. Since it's currently late on taxes and he can't qualify for the loan, he asked me to help. The current owner can't do anything because her credit score is too low, she's not looking for money, just a way for her son to take over the properties and pay off the taxes.

I could purchase the duplex for say $650k, live in one side and keep the other side rented (current long term tenant in place, $1200/mo).  I have to add my friend to title so it maintains a family member on title for prop 13 taxes. Question #1, can he be added before fully purchasing the property or only after?  His proposed plan is that $325k goes to him for renovations and refinancing per his first plan.  $325k goes to me to invest in another purchase (buy cash and brrr or flip).  Once I refinance on another purchase I would pay off my $325k, he would have refinanced his property and paid off his portion and I'd move the title to his name and be out of the picture but with a new rental property.  This would take place over 6-12 months and I would maintain reserves in case something goes wrong and need to continue making mortgage payments.  I have an additional $75k in savings ($22,750 used as 3.5% down payment, leaving $52,250 reserve plus what I don't use on investment and rehab cost).  Also, I live in the bay area where everything is very expensive so I'd be looking for investment purchase 1-2 hours away or out of state, which I have researched.  

Of course there are a lot of small details that I'm either not including because this would be too long a post, or I need answers to. I'm assuming I need a minimum of a lender, realtor for paperwork that I haven't a clue how to navigate and a CPA to map this out. I have these people lined up. Do I need a broker as well? An attorney? Do I need to make my friend a partner and form a contract? Can I even do that with an FHA purchase? Maybe there's a better way to look at this rather than FHA purchase. Like I said, I think I'm missing something major here. As in, this is all completely illegal and in violation of the loan? Maybe I need to formally borrow the money from the seller in order to use the funds. I can also mention that I'll be maintaining my current home (family owned rental, not in my name), so I'm not worried about the short term living situation. Maybe I can not move and form a partnership with my friend and do some type of creative financing purchase rather than FHA. I just don't know. Since taxes are late, something needs to be done soon.

Thoughts??

Thank you!!!!

Dawn

Hey everyone,

I live and work in the Bay Area, but look forward to someday relocating to a quieter lifestyle in Oregon.

I am really excited to get started in investing and I'm researching Medford, OR area. From the little research I've done so far, there seem to be a lot of listings that aren't moving super fast.  Maybe these are only the bad areas of town?  $300k is my top range, or multiple cheaper properties.  I haven't decided on single family vs. multifamily, mainly because I just don't know the market well enough yet.  I'd love to hear some thoughts on the current market in Medford and surrounding areas or any experience that people have had with the area.  I need to put a team together, starting from scratch, so I'd love to hear if anyone has some good referrals, starting with a realtor. My cousin lives in Talent and I plan to go visit in the next couple months to do some more research.

Thanks!
Dawn

Hi Amanda,

I'm new here on Bigger Pockets and interested in buying my first rental property in Medford, OR area fairly soon.  I live and work in the Bay Area but want to eventually relocate to Oregon, have family near Medford, and feel that I'd be able to travel there fairly easily when necessary.  From what research I have done, there seem to be a lot of properties available.  I haven't run a lot of numbers but I don't see a lot of quick sales and it seems that even from mls listings, there may be some good options.  But, I haven't made a trip up specifically to look at the market and I have not spoken with a realtor.  It sounds like maybe I'm wrong in my initial impression of the market.  Do you have a realtor familiar with investment properties that you are working with?  How does the rental market/vacancy rate seem?  

Best, 

Dawn