All Forum Posts by: Chris Gibbs

miss read

A short back story.  I am 26 years old and have been in the auto sales industry for the last 3 years.  I am decently good at it and make about 50-60k a year.  In December I closed on my first property a house hack triplex out in Gresham OR (near Portland).  Ever since I discovered BP I have dove head first into eating, sleeping, and breathing real estate.  I don't particularly like my job and am looking to find something I can do that is in the real estate space.  I have thought about mortgage broker, real estate agent, or maybe property manager, but do not know if they will be a good fit.  I feel like there has to be a company or individual I can work with that can use my obsession with real estate.  If anyone has any idea's that might point me in the right direction I would really appreciate it!  Thanks in advance!

As someone said above just because property's are selling for below list price doesn't indicate a cooling off period.  The sellers are probably just getting a better idea of what property will actually sell for and over stepping that amount.  Its the value that real estate is selling for that is important for determining economic trends.  List price, selling price, above or below is all just the psychology of the market and can change vary quickly. 

 I agree with you.  I was just pointing out that assuming the theory is correct he was using the chart that he posted incorrectly.

 It is my understanding that this chart is supposed to be used on a macro economic scale.  So for the entire country we are at about the 8th or 9th point.  Other COUNTRY'S are at different parts of the phase.  For instance China is almost the exact opposite as ours.   The theory predicts that the peak of this cycle will be around 2024.  

This is the other chart that has to do with that theory.  You can see that ww2 time and the recovery after is the only time that it was not consistent.

One thing you need to keep in mind with lower priced properties is Cap ex.   Roofs, appliances, driveways, hvac, furnaces... Ext.  They don't care about your percentages they cost the same in a $400,000 house as a $20,000 house so just make sure you run your numbers accordingly. 

Took about 30 days after accepted offer to close.  

I recently bought a triplex with FHA financing and when I was shopping around I found that none of the banks I talked to allowed for an owner-occupied multifamily loan for less then 25% down. The only program available for that kind of financing was FHA. With an SFR that you live in you have many more options like 5% 10% and others but for multi family FHA was the only program I found that would allow it.

I pm'd you

Quick disclaimer I am not an experienced investor (only one triplex).  But from what I have read and the questions you have proposed here is how I see it.  If the worst case scenario happens and you cant find tenants to pay higher rates it doesn't really hurt you as long as you can stay afloat.  Historically you do not see market rents going down necessarily in a downturn but you may see some vacancy increases.  But what I would like to have available to me in a downturn is a big chunk of liquid cash to buy up all the cheap property's.  And at the vary least you have a heloc available for emergency fund to keep your property whole.  Just my thought process on the matter hope it helps.