All Forum Posts by: Account Closed

Welcome Diana,

I would second what Stephanie has said above, and read the beginners guide to real estate. I'm a big advocate of understanding the pieces of the puzzle before you jump in, it will help limit the mistakes made on those first couple of investments. 

If you plan on investing in Sacramento, finding rental properties that will actually turn a monthly profit is much more difficult than it was when our market was dirt cheap in 2011. Then, beginners mistakes were so easily forgiven by the low price of entry and the big appreciation we experienced here. Now, if you're thinking of securing your family's financial state as your profile says, you would have to find quite the deal on a rental property, and then add value via rehab/repair to make it a winning deal for you. 

Feel free to get in touch for any discussion! Cheers

Hi Robert,

I have a similar situation in Sacramento, with my primary residence having a strong equity position much like your rental. I would definitely hold onto your property. You said it yourself; good tenants, appreciation/debt pay down, a bit of cashflow, and low maintenance. It has the characteristics of a property I would gladly hold for 20 years longer. 

This question isn't really an investment one, though. If you and your wife want your dream home now, that's a personal decision that comes down to your financial personality. 

I personally, lean towards the frugal side. I prefer not to use earnings from assets to purchase "wants" because I have a long way to go with my investment goals. My Carmichael home is sitting at a comfortable 50% LTV after 3 years, and with friends renting rooms I haven't made a single payment. I plan to open up a big equity line of credit on it soon to use towards cash purchases out of state, rent rehab/rent/and refi so I can pay that line of credit right off. It would rent now for 1700, and my PITI is 1100. I'm never getting rid of this sucker! It's propelled me into a world of real estate options.

Welcome Kristen! I'm also from Carmichael. Not born, but raised and still live here!

I remember shopping for my house in 2012 and coming across many distressed streng homes on and surrounding locust ave! 

Cheers!

 Hey Ramsey, the property is on:

6916 birchwood cir, Citrus Heights CA 95621. 

Check it out, PM me if you'd like to exchange analyses. It would only be moderately attractive to me at an extremely lowball price. It doesn't appear as if the seller is dying to get rid of it, based on how many times it's been listed (overpriced every time) and removed in the last 6 years. 

Cheers!

 @Gordon Cuffe

I actually drove by that property on Birchwood about a month and a half ago. That property is much cheaper that other houses of it's type on the citrus heights market, but it's on a very bad street. Lots of chain link fences, 4-6 or more cars parked in front of each house on the street, best house on a bad street. It also backs right up to a very busy part of antelope road and does not have a sound-retaining wall behind it (like the surround neighborhoods off antelope), but a standard wooden fence. I would compare the houses on that street to a standard North Highlands neighborhood. C, maybe even a D grade. I absolutely agree with you that cash flow is tough in this town now. 

Hi all,

I laughed while typing the title to this post because it sounds a little silly. Here is my story:

I'm completing my contract day job this week, and I have not yet found another. Actually, I haven't really looked for one! I was going to take a month or two off work to find just the right opportunity (and relax a little, why not?), as my income from my roomies + unemployment more than cover my monthly expenses. 

At the same time, I would like to purchase an buy and hold investment property out of state. I am from Sacramento CA and own my primary residence plus one more rental here, but am not impressed with the low cash flow, overheated market, and high barriers to entry for buy and hold investors. 

I currently have about 30k liquid cash and 145k equity in my primary residence. A cash out refi at 75% LTV would give me 60k cash on my primary residence.

I am wondering what I should do about financing my next investment. I can either wait until I'm back to work and use a conventional loan from fannie mae, or jump right in with a private lender such as b2r finance at an interest rate of 6.5%-7.5%.

My target property is ~100k, and I'm targeting the sweet spot where I can get optimal cash flow and good prospective appreciation. I'm willing to do a little bit of rehab (5-10k). For this reason I like Texas (but know there are downsides such as high property taxes and major investor competition), and I've even given thought to Indianapolis and Memphis. 

I have received conflicting advice from different professionals and investors so I figured I need more information before making a decision. What do you say BP? What are some of the pros and cons of each financing approach? Are there other approaches that would be more optimal? Do I just need to forego my vacation and hurry up and get a job? LOL

Thanks! 

Elliott

@Okeoma M. 

That is an awesome success story with great numbers to match! Very close to that sought after 2%! I really like the facetime-viewing idea as well, I'm going to keep that in mind.

I'm also very interested in Texas, and you've reinforced the need to build a strong network in my market of choice!  I may have some questions for you along the way.

Cheers!