All Forum Posts by: Bud Dwyer

@Kyle Benham

That's pretty much the exact same situation I'm in.  All my buildings have 2b/1ba units.  I have two in South Phoenix and one in North Mountain.  The building I renovated rarely needs more than $200/month in maintenance now.  Where as before I was paying for all the things the previous owner didn't fix.  

The total rent roll is about $8200/month right now, but I have long term tenants and should they leave I can probably get it up to $9550.  With COVID I don't think it's a possibility to renovate the rest of the units right now.  Which is partially the reason I'm thinking of selling.

I live out of state and have always used a PM.  My risk appetite doesn't mix well with flipping.  My goal is to get enough units to not have to work.  I'm just wondering should I sell them, or bite the bullet and put however much is needed in to this next building now, so I don't get eaten by CaPex?

Back in 2016 I bought three 4plexes in Phoenix, one for $176k, and two for $190k.  Sometimes they have made $4k a month net, but quite a few months they have lost money.  Last year they lost $30k total due to needing to completely rehab 3 units in one building, but their value has gone up considerably.  In December I did a cash out refi and pulled $350k out of all three buildings.  I attempted to buy more buildings out of state, but thankfully they all fell through right as COVID took over.  So I am sitting on about $420k right now including my savings.

Fast forward to today. I had to replace an A/C unit for $4150, and it looks like two more are about to go soon as well. Due to the new mortgage payments I only net about $1900 a month before any maintenance or CapEx. Now, after every monthly cost I'll be lucky to get $800 a month for the rest of the year, and that's before maintenance or CapEx.

They're all valued between $350-360k now.  I'm thinking about selling them, but kind of on the fence about it, due to the fact that Phoenix has very few natural barriers and can consistently grow.  If anyone has been in a similar situation how did you handle it?

Does anyone know any banks that would be willing to go over the 10 loan limit for an out of state investor?

I'm willing to make phone calls, but if anyone has any leads that I could start with that would be great.

I tried to do that in Phoenix, only to have the market start rising until I the numbers didn't make sense anymore. Am I not able to get single commercial loans on each SFR?

I'm doing a cash out refi on some buildings I own in order to buy 15-20 SFRs in another market. The purchase price of each SFR would be in the $50k-90k range. I plan on putting down %20 on each one.

The loan officer I'm working with has offered me a line of credit in order to purchase and rehab each one. When they are complete and stabilized with a tenant, convert them all to a portfolio loan. The problem with this as I see it are the fees for each purchase. It's a %1.75 draw fee every time I use the LOC. I also would need to cover the closing costs, and pay for two appraisals(One before purchase and one after rehab) for each property. While doing repairs on them I would have a %9.5 hard money loan that I have to service without rent money coming in.

What I would like to do is buy all the properties with the repairs costing $5k max, then slowly use the money I get from the rents to repair or upgrade one SFR at a time.

Anyone have any ideas?

I am at a crossroads with my current multi-families.  I own three fourplexes in C-D areas.  Luckily they're in Phoenix, so they have appreciated a bit and the rents are higher than I thought they would be by now.  My options as I see it are to do a Cash Out Refi on them, then try to get either a larger property or a lot of smaller ones.  Using comps in the areas, I estimate all three combined are worth $950k.  I currently owe about $395k on them.

I would love to get a larger building that can out perform what I'm making now.  Then there is the side of me that want's to stay small, and grow my cash flow as much as I can, so I can eventually do real estate full time.

Anyone in this position currently, or have any advice on what I should do?

Thank You

San Diego, CA

Anyone here noticing that that SF and condos around the county are sitting on the Market for 40+ days before they get an accepted offer?  Is SD finally cooling, or is there something else going on I'm not aware of?

I have money in a TSP and it's going down, but I'm not retiring for another 15 years. I also have been getting beat out by chinese investors in Phoenix for the past year, and I'm sitting on a larger pile of cash than I'm used to. I hope I might actually be able to enter the San Diego market again if things take a dump.