All Forum Posts by: Derrick Dill

People complaining about too much traffic in this thread in California and pointing out that there's a mass exodus in California.. So the traffics getting better then, right? It's not as congested, rental rates are lower, sounds great to me..

As someone who just bought a property here, the real estate market is on fire, properties going over-market/listed price within days, several offers. There is high demand, and low inventory. 

Save up. Get your credit score up. Look at areas you're interested in. single family? Multi family? Near school? how many bedrooms/bathrooms? what can you afford? 

Yup, it's possible. FHA will want to know you'll be living there and usually like a reason for using FHA loan when you have a primary already (common is moving closer to work)

The Fed (Jerome Powell) has stated consistently their targeting inflation rates of 2%. This is higher than we're used to, but not necessarily going to crash the economy. U.S. dollar is the global currency for a reason, when a country owes another country, they pay in U.S. Dollars, not yen, not euros. If the U.S. dollar collapses, the whole world will be in trouble.

If you believe in hyperinflation coming soon, the smartest thing to do is put your $ into assets. Theoretically, your dollars aren't worth as much, so assets prices will go way up. Get real estate, get stocks. If you're holding onto cash in a inflationary environment, your cash is losing value ever year (it' worth less)

1. Like all rentals, they should have a business license with the city to be used as a rental legally. 

2. They are required to have separate address if done legally. Mailman puts their mail in their mailbox...

3. No

4.self-manage. Of course there are property managers who can manage it

1. Good, this is the first step and will determine what you can afford

2. Most RE agents first question is, are you pre-approved? do you have a lender?

3. From offer to negotiation to closing will be 2 months. From offer acceptance to closing, a month is pretty standard

I just bought in the Bay area a few months ago. It's a house-hack that cash flows. Outlined my purchase here:
https://www.biggerpockets.com/...

Most basically:

You buy house that rents for 1000$. Mortgage for house is 700$. It's cash flowing 300$/month. 

You can add in all the repairs, vacancies, etc. after you get the most basic understanding

1. Usually those programs are based on AGI (adjusted gross income), so won't be reflected until after you file your taxes

2. If it is based on AGI, you can lower your AGI by contributing more to your 401k or a traditional IRA.

I house hacked a duplex with 3.5h% down FHA to get started. That really put me in good position. Eventually I moved out of that duplex, and it cash flows a few hundred. I used equity from that property to purchase out of state rental properties. You'll need a good year of income (2 years for some) before you can get pre-approved.