All Forum Posts by: Eric Chiang

@Michael Cabaña 

Perhaps you can consider Seller Financing or Subject 2, though I would suggest doing more research on it before jumping straight in. I personally have no experience in this (yet), but there's a BP podcast that discussed it in length (Episode 527 with Pace Morby). Just be aware of "Due on Sale" clause.

Additionally, the podcast episode mentioned "Due on Sale" insurance, but there was a BP thread that mentioned difficulty finding a company that actually offers this: https://www.biggerpockets.com/...

Again, just a suggestion, be sure to do your own research.

Happy investing!

@Kendall Kelly if you listen to podcasts, the BiggerPockets Real Estate Podcast Episode 520 discusses STR Arbitrage. May have some helpful information for you.

Happy investing! 

@Josh Boulanger if the lender is telling you 15% min downpayment for a house that you plan on living in, it's possible that they don't offer FHA loans. In that case, would suggest talking to other lenders.

As others have already mentioned, FHA loans allow as low as 3.5% downpayment. Just be sure to factor in the 1% PMI in your numbers, as this exists for the lifetime of the FHA loan

Happy investing!

Hi @Max Ortiz, as others have mentioned, there's some risk in REI and househacking is probably the least risky of the REI options. What's also risky is relying on a W-2 for the rest of your life while losing money to rent every month haha.

As an investor in California, I've seen that it's more of an equity play for the first few years, then the cash flow is projected in years 3-5+. With every deal, run the numbers to see if they work because you can find decent deals, even in areas such as California. Just make sure to adjust your expectations. In nice areas such as Gilroy, CA, you may find that the property appreciates more year-over-year and that vacancies are lower compared to some OOS properties (but never rely just on passive appreciation). 

Another suggestion is to get creative on how to make money on the property. Is there enough land to build an ADU? Can you rent by the bedroom to maximize your NOI? Can you renovate the property to add bedrooms or baths?

Overcome the analysis paralysis!

Hope this helps, happy investing

I don't have any personal experience in syndications (though I plan to in the future once I become an accredited investor) and agree with what has been previously said.

The only advice I've heard from some others, who have invested in syndications, was to take some time (~2 years) to observe the entity/group from which you would like to syndicate with to see if you agree with their investments/can trust the group.

Happy investing!

Perhaps others with more experience may say otherwise, but I would not think that PM costs are included in the NOI listed since 1) it would lower the "appeal" of the property by lowering the NOI and 2) PM costs vary from PM to PM.

In California, I've seen PM costs roughly 6%-10% rent depending on how much of the work you want the PMs to handle (eg handling contractors, paying the mortgage, etc.). This doesn't include additional fees such as lease signings and renewal.

In my experiences, the PM cost does add up, but it's definitely worth it as it frees up my time to focus on high-impact projects. It's really about the opportunity costs which makes me feel that having a good PM is worth it. Additionally, I've asked my PMs for their all-inclusive services, but pay the minimum because I am househacking my duplex, and their rates are based on rental income.

Happy investing! Hope this helped

@Alex Verdugo the inclusion of the security deposit in the closing cost was the owners way of transferring the responsibility of the security deposit to me. Once the tenants move out, I will be responsible for reimbursing the security deposit minus expenses. 

As far as being unable to pay the deposit back, I am unsure, from a legal standpoint, the full repercussions of this

@Caroline Gerardo thank you for that notice. I've had numerous discussions with the management at my company prior to my move, and should have no problem with receiving a 36 month attestation for remote work

@Art Morgan appreciate the help!

@Caroline Gerardo currently working remotely at my owner-occupied duplex in Riverside, but looking to continue working remotely when I eventually purchase my next owner-occupied multifamily property in San Diego. 

Hello BP Community! I'm new to REI and recently closed on my first househack (duplex) in Riverside, CA. Current plan is to save for the next 1-2 years, then utilize a physician's loan (one that accepts PharmDs) to fund the 10% downpayment of a triplex/quadplex in San Diego, CA to owner-occupy.

Was hoping to get some perspective on the following questions:

• Any notable lenders of physician loans (accepting PharmDs) in CA? 
  • The few that I've talked to do not lend in CA
• How much higher of an interest rate can I expect when compared to conventional loans?
• Aside from the expected higher interest rate when compared to conventional loans, are there other factors to consider when committing to a physician loan?
• Are there other creative lending options I should consider in order to fund the next property, when capital is relatively limited? 
  • I have also considered a joint venture or seller financing, but I need to do more research into these

Thank you in advance for the insight!