All Forum Posts by: Tanya Ansari

Can anyone recommend or suggest spreadsheets in order to calculate profits for multi-family units? Looking for 5plex and up. Spreadsheets will be used for guidance.

thank you!

Tatiana.

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Hello BP community!

We are looking for ways of how to use Business LOC to invest in RE.

Can someone explain in simple words how it all works? Pros and cons?

We do have great credit scores, financial situation.

We opened up business credit card back in May, with one investment property. We want to use creative ways of financing rather than using cash.

Thank you for your help and advices in advance!

Tatiana.

1 Vote

@Sol Romand

I would like to find out more!

I am staying away from using cash. Can i dm you?

Thanks!

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Hello:

Searching the market and looking for an opportunity in Georgia, Alabama or Tennessee. My and my partners are looking for multi-family deal that produces great cash flow, recession proof. Downpayment of around $305K. There are several requisitions since one of the partners need to do 1031 exchange so timing is tight. If someone can advise which areas to look for (sub-markets) in those states and why (something that my market research has not shown me but you potentially know the area best), please let me know. I would love to speak with you as well if your time permits!

We are also considering Section 8.

Thank you for your time, BP community!

Tanya.

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Columbus, Georgia

Hello:

I wonder if the BP community can recommend an attorney who specializes in helping to implement partnership contracts.

The second question would be: what bullet points shall I think of when working with an attorney on such a contract? (ex: exit strategy, splitting profits and etc). We will be using our partner capital and bringing "brain power" for the deal (he will be hands-off for everything else).

Thank you!

Tanya.

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San Diego, California

UPDATE:

I would like to thank @Twana Rasoul for the incredible....and magical work he has done for our family!

Within 3 days... after posting this we were able to lock down the property with him! He is truly a professional and has great influence/negotiation skills.

I don't know how he does it, when nobody else can! We have had 2 agents prior to him and were tired of going to open houses and failing each time! We lost every house we submitted our offer on.

With him...we did not go into overbidding war, as other agents would recommend. We did not lose on equity here.. as many people today do!

We were able to buy a house that is excellent for our family - great peaceful community, great schools, no remodeling needed!

Twana has a strategy in mind when it comes to real estate. Truly, as investor himself, he understands the game. This is not average real estate agent but only the top 2%.

As hot as San Diego market is, he was able to do it with high speed and top quality! I can't recommend him enough!

I can't wait to do more deals with him and invest in SD as well.

Yes, that might sound as an ad, but when truly he saved us - I can't just stay quiet ;)

Tanya.

1 Vote

Originally posted by @Dan H.:

Originally posted by @Tanya Ansari:

Dear BP members:

I really need to hear some advice.

Long story short:

-we are full time high income earners with W2 (also pursuing a start-up in biotech on the side) moved from Bay Area to SD (Cali)

-invested in Indy last year (duplex)

-we rented in SD for 5 mos while finding out the best area to live in and now are looking to buy primary residence

-we have about 240K in cash and another 130K coming soon from the sale of another property.

-we do plan to move out from Cali in 5 years (due to high taxes and expenses)

We both work from home, so we need to have our own place, plus we have a toddler w/nanny in the house. Therefore were looking for 3-4 bdr in good areas of SD (4S, Rancho Penasquitos, Poway, Rancho Bernardo, Carslbad) where good community is. However, people are going all the way to removing all of the contingencies including appraisal and for a house of 900K-1 mil offering 1.2 mil and higher.

I don't feel offering and paying so much cash for something that is not going to bring me any income but actually is a liability. Is it better rent for around $3500, invest in other states rather than pay mortgage of $5500-$6000? However, we would lose appreciation (and it has been around 9% last year).

Again for us, a community is important, so we don't want to buy duplex in SD as most of them are in not so good areas (of our criteria).

Please consider that closing costs; moving fees and real estate agent fees are being paid for us.

Please advice.

Thank you!

Tatiana.

Some items to correct:

>However, we would lose appreciation (and it has been around 9% last year).

I do not know where you got 9%, but San Diego area appreciation was over 20% according to multiple reliable sources I have seen no reliable source as low as 9% for last year.

>for a house of 900K-1 mil offering 1.2 mil and higher.

I do not know what your basing the value on but if it is the listing price you need to recognize that it is a pricing tactic sometimes to list below comp value to create as much frenzy as possible to obtain highest price. I suspect those removing appraisal contingencies have a good idea what the range the property will appraise in. Few are believing they will need to bring extra cash to closing in order to obtain financing.

Now for your question:

I start with where the projections are, nationally projections I have seen range from -2.5% to 9%, but the projections for San Diego are significantly higher. I have seen ranges from 4% to 18%. I personally will be surprised if with the already announce intention to raise rates that we will get 18% local RE appreciation.

The fed has an ounces intent to raise rates. It is a near certainty that rates are going up in 2022. Buying now is likely to provide the best rates.

Rent versus buying cash flow: nearly all RE purchases in San Diego are have negative initial cash flow at high LTV financing >=80%). That negative cash flow is even more extreme in the nice areas that you have listed (I live in one of those areas). It will be initially cheaper to rent than to purchase. However, rents are increasing at an incredible rate nation wide, but especially in areas like San Diego. For example rents in Carlsbad rose 18.4%. I expect rents to continue to raise at a fast rate for a few years minimum. Here is my reasoning: 1) houses have appreciated faster than rents for nearly a decade. The rents lag property prices and are going to be in catch up mode for quite a while. This is of course related to the cash flow situation. Rents are at a low compared to property values. Rents need to go up due to the underlying property costing more. 2) those announced interest rates wil, further make homes less affordable. Not a 1% rate increase is a 33% increase in the rates (3% rate goes to 4%, means current rate has gone up by 1/3). This is almost certainly going to affect affordability more than the property appreciation. Less affordable home makes it more difficult on new home buyers which keeps them renting. 3) new identified risk related to covid eviction moratoriums. San Diego county had the most stringent eviction moratorium in the country. The only legal evictions were for health and safety items. The tenant was allowed to stop paying and break every lease term not related to health and safety and you could not evict them. This newly identified risk must be and will be reflected in the rental revenue. in summary rents are going up.

Appreciation forecast for San Diego continue to predict high appreciation. I tend to be on the conservative side of these forecasts. I am forecasting the short term (<5 years) to be in line with inflation, but I expect in the long term San Diego appreciation will continue to be far better than inflation (it has for at least 70 years).

Equity pay down, with the rates were they are and the cost of properties (>$1m) where you are looking, the equity pay down is substantial.

My own belief is 5 years is border line now on renting versus owning. It could take 5 years to where property would be cash neutral if a rental. Appreciation and equity pay down, versus cost to buy (various closing costs including possibly points) and sell (RE commission and other closing costs). If you were going to own longer, I would be advocating buying. In the near term appreciation/depreciation risk is real. I would not rely on a short term appreciation as there are too many things that could occur without adequate time to recover.

Good luck

Thank you for your time! this is an awesome answer in full detail.

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@Twana Rasoul thanks Twana! we actually are thinking of converting our home after 5 years to rental as well.

I will reach out to you!

1 Vote

thank you all for all of your answers! it really helps to redefine my strategy and many of you corrected me, which again I thank you for.

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Dear BP members:

I really need to hear some advice.

Long story short:

-we are full time high income earners with W2 (also pursuing a start-up in biotech on the side) moved from Bay Area to SD (Cali)

-invested in Indy last year (duplex)

-we rented in SD for 5 mos while finding out the best area to live in and now are looking to buy primary residence

-we have about 240K in cash and another 130K coming soon from the sale of another property.

-we do plan to move out from Cali in 5 years (due to high taxes and expenses)

Again for us, a community is important, so we don't want to buy duplex in SD as most of them are in not so good areas (of our criteria).

Please consider that closing costs; moving fees and real estate agent fees are being paid for us.

Please advice.

Thank you!

Tatiana.

0 Votes

All Forum Posts by: Tanya Ansari

Tanya Ansari has started 8 posts and replied 17 times.

Post: Spreadsheets for guidance for commercial residencies >5 units

Post: Business LOC to use for RE deals

Post: Line of Credit

Post: Out of State Investing - Georgia, Alabama, Tennessee?

Post: Recommendations for Attorney/Partnership Contract-Major Points

Post: Primary Residence or Investments?

Post: Primary Residence or Investments?

Post: Primary Residence or Investments?

Post: Primary Residence or Investments?

Post: Primary Residence or Investments?