All Forum Posts by: Doug Quist

Quote from @Osazee Edebiri:

Quote from @Doug Quist:

My old house went from $4M to $5M in the three years since we moved, but my portfolio that I purchased with the net proceeds has done WAY better both due to better appreciation coupled with leverage and it is cash flowing as well.

Wait your OOS portfolio has performed better than one South Bay Area house that appreciated 1 million dollars in 3 years?

Wild statement. 

I feel like that seems to justify buying a property in the Bay. Many people knock buying in California, but when we go through these forums I hear so many people say they used proceeds from selling property to create solid performing portfolios in other states. 

We bought a $1.75M house in the South Bay in 2008. Did a massive remodel that added 800 sq ft in 2016 which cost approx. $750k and then sold it for $3.9M Zillow says it is now worth about $4.9M. That was great, but VERY expensive to "get in". Of course, we started with our original house in 1995 at $500k, traded up a few years later, traded up a few years after that before we got the final house. The CA has was 25% LTV, so not much leverage.

Took the cash out, after taxes, from the last house and purchased four fourplexes, a duplex, three condos (sold after owning for 15 months), two single family homes (SFH), a newly built SFH (flipped from the builder in 28 days) and a building lot (sold after 2 years). Other than the flip all the purchases were at 75% LTV with 2-3% 30 year fixed loans. Actually, the condos and duplex were zero cash invested, until the HELOC was paid off with the CA sale. That portfolio is now approx. 40% LTV due to appreciation plus amortization.

Utah has been on fire both for appreciation and rent increases.  I know that David Greene doesn't totally agree with this, but cash-flow plus conservative leverage is the ticket. Appreciation doesn't feed my kids or grandkids. :-)

I had to do one eviction (condo) and that took 2 weeks.  Try to do that in CA.

Not quite sure why @Carlos Ptriawan feels that a landlord for multi-family is more of a headache than being a landlord for a single family.  I have six fourplexes, a duplex and a single family.  The single family has been more hassle for me.

I was in the South Bay for over 20 years and we made bank on our primary residence.  I moved to be closer to my parents as their health has deteriorated, so sold the house and deployed those funds plus others both out-of-state and also in my new state.

My old house went from $4M to $5M in the three years since we moved, but my portfolio that I purchased with the net proceeds has done WAY better both due to better appreciation coupled with leverage and it is cash flowing as well.

I'm struggling to find good cash flow, due to interest rates, even in Arizona, Idaho and Utah.  Sharpen your pencil and be a good detective.  For me, a house hack is not in the cards due to SWMBO, but I'd do it if I could.

Quote from @Hannah Genton:

Thank you all. I've decided to hold onto it and see how the next few years play out. I appreciate the help here.

Since it doesn't appear you NEED to sell, I think you have chosen the best option.

Personally I wish I had never sold most of the properties I've had.  There were a few times when selling allowed me to get a bigger property (sell condo, buy fourplex), but a few times when I was in "the sellin" mood and sold several condos and should have just kept most of them.

Totally agree with everything said about not renting to family members.  The only exception might be to a child, but only if you are OK with the fact that you might end up subsidizing the situation, at some point.

Even if not related, but you end up becoming friends with a tenant, it can get bad.  We moved just a couple blocks away and knew that there wasn't a good way to hide our ownership since we would be attending the same church and others in the congregation would say "Oh,  you are living in Quist's old house", etc.

They have now moved out of state, but have been texting and emailing because they left that house in a poor state and were charged fixing expenses and didn't like that.  NIGHTMARE!

The new tenants don't know us.  Yay!

BTW, I have 27 doors in along the Wasatch Front and they are all cash flowing.  I've not looked recently since I've got 10 more doors under constructions (6 in Ogden and 4 in AZ), so hording cash, at the moment.

It is crazy that Sandy City permitting, when discussing this with me in 2022, was giving me such incorrect info.  Based on the fact that this was already signed  and in effect.  I will investigate further.

Quote from @Logan M.:

@Quinell Dixon, let's meet up for lunch.

People overcomplicate real estate. This hit me when I met an investor with a lot of real estate with no formal education and even after becoming a multimillionaire, he is still grinding.

 @Quinell Dixon and @Leo R., I eat lunch every day and I'd be happy to join y'all for lunch.  I live in Sandy and meet my Utah Valley friends near Slapsgivingpoint at JCW, Five Guys, Spitz, etc.

I don't house hack because SWMBO isn't that interested, but my daughter does in her Vineyard condo and another daugher is going to start in her St George townhouse, so I know a bit about it.  I'm mostly a LTR dude with fourplexes, duplexes and a house in Utah and SLC counties and one being built in Phoenix and two in Ogden.  Lunch sounds fun!

Quote from @Quinell Dixon:

All amazing advice. WOW! I think after digging through the forums a bit I had a lightbulb moment. I believe I want to house back my garage and convert it into an ADU. That will definitely take time and money, and I think I will use my HELOC out of my first home to build the ADU and short term or long term rent it. I want to do research. You guys are all amazing!!

With respect to the ADU, check on your zoning to be sure you can do that. Some cities are pretty anti-ADU at this point. I am thinking about building a large woodworking shop and Sandy City kept emphasizing that "you can't have anyone sleeping in it". I think they said it about 8 times. :-)

Quote from @Jamie Jones:

Quote from @Nick Bolding:

I missed that you are trying to get a new primary. I would for sure refinance one of the existing loans if not multiple into a DSCR loan product. If you need a mortgage broker I'll send DM the broker I use.

 Why would he want to do that, unless he needs to pull additional cash out? I'm assuming his existing loans likely have way better rates than what he could get in today's market. 

Thanks all, but I think I'm going to keep all my 10 existing loans which are at 2.5 to 3% and ALSO get an 80% LTV loan for a new primary residence. In this case, I can "have my cake and eat it too". I expect the new $1.3+ M loan will be at about 7.5%. :-(

Quote from @Nick Bolding:

I missed that you are trying to get a new primary. I would for sure refinance one of the existing loans if not multiple into a DSCR loan product. If you need a mortgage broker I'll send DM the broker I use.

Why would I trade in one or more of my 2.5% to 3% loans for a DSCR at a much higher rate?

As this thread has, I hope for all those reading it, demonstrated, there is no limit for me, in this case, since I'm buying a new primary, owner occupied property.

I'd be happy to have the referral for the new construction fourplexes that will be done in about six (6) months as long as they can write business in AZ and UT.

Quote from @Nick Bolding:

@Doug Quist use a DSCR loan. It's a NQM loan product. Typically 25% down and typically if you BRRRR a deal you can refi out of a deal within 6 months due to it not being a qualified mortgage product. Plus way less paperwork and less to consider. Easiest way to scale your portfolio.

Using a DSCR loan isn't possible for my primary residence as it won't be generating any income.

For my two new fourplexes, that are being built, using a DSCR will be one of the options that I'll explore when the time comes.