All Forum Posts by: Ali Ahmed

Hi All,

Sorry I haven't been watching this thread, but I am located in Berkeley, CA and am an out of state investor currently in Indianapolis and Oklahoma city with my first two single family properties.

I'm looking at a value-add multi-family next and if you would like to connect, I do have a Google Group going for those of us in the East Bay/SF area, and others are welcome to join. The goal of the email list is to share notes, have virtual meetups and to arrange physical ones, and to connect with like minded folks geographically.

Cheers, and happy investing!

Hi, I am in the Bay Area and investing in out of state properties for the past 2 years. How do I join the Google group?

Thanks in advance.

2 Votes

San Jose, California

Hi All, I am looking to get a six plex and I am qualified only up until a 4 plex loan. The loan officer says anything above a 4 plex would need to be a commercial loan but I do not want to go that route as they come with higher interest rates. Is there a way around it to get a conventional 30 year loan on a fixed rate for a 6plex?

0 Votes

Originally posted by @Jonathan Pflueger:

Numbers are numbers. What is your bottom line criteria for buying? Does this deal meet that criteria?

I know that when I start trying to make a deal work, more often than not, I am just putting lipstick on a pig. Be careful you are not so desperate for a deal that you override your buying criteria or common sense.

I don't know your market so take this at face value. Best of luck and stick with your buying criteria, that shouldn't leave you astray.

Thanks, that clears it for me. This does fit my buying criteria. Prior to BP, I would have dived right in if it paid for the mortgage, fee, insurance, and had a little leftover. This community/ podcasts taught me to factor for Capex/ vacancy etc.

I cancelled on one of the 4 flex as it needed a lot of work. For the other building I negotiated a price of 294k. Hoping to fix it up and raise the rents to market to get it up to 1% eventually.

1 Vote

Very similar to a property I am currently in contract with in Phoenix. The difference is you have new roof, plumbing, etc.. I would totally switch my contract for this. To me, if you have some money from your day job or some extra cash flow from other properties, it is okay if it gets a little less than 1%. Cheers!

1 Vote

Originally posted by @Ryan Moore:

Originally posted by @Doug McVinua:

@Ali Ahmed We manage multiple 4-Plex's in the Phoenix market and I can't think of one where an HOA is going to cover landscaping or electric on the property.

Are you sure about that? Trying to help protect you!

My property's HOA covers "landscaping" (aka watering the rocks), and water to my units. Electricity to my building is my responsibility, which ultimately is metered out to the tenants. I obviously pay electricity on vacant units during turnovers.

I got a hold of the HOA docs finally and they do cover landscaping. Confirmed it with the sellers and their PM as well. So far, sellers have agreed to reduce 7k in total for both properties. And I managed to find insurance that is cheaper than what I had posted initially. Is there anything in particular I need to look out for when getting an insurance for a commercial four-plex?

0 Votes

Originally posted by @Account Closed:

You are buying fourplexes in Phoenix with rent ratios of 0.8%! First of all, Phoenix has unlimited land. Secondly its a fourplex. Rent ratios should be higher than for SFRs. You will only sell to other investors. Thirdly, rent growth is slowing and is under 4%/year. Fourth, we are in an increasing interest rate cycle. I cant see how your cash flow will improve or your appreciation.

If you want to buy negative cash flow scenarios, you must do it where appreciation is almost a given. And buy SFRs in desired areas that have a owner occupant market. There are some markets like that but I dont think Phoenix qualifies (although I dont invest there so I cant be sure).

After discussing with my PM and checking craigslist and rentometer, it looks like the rent can be raised up to 100 a door as they are below market rent (one 2 bd 1 bath is rented for 500). I will have the inspection report tomorrow and hope there aren't many repairs. i will then go further with the purchase.

0 Votes

@Antoine Martel Hi, I would like to know how you manage to invest out of state. Do you actually go see the property prior to buying them? I am considering investing out of state and since it will be my first time in a state I have no experience in, I would like to know some pointers for doing such deals.

1 Vote

Hi All, I have a question to all you investors out there. I am looking into properties in Michigan to invest in and I need some guidance on how one purchases when out of state. I usually buy in places where I have friend or family who go see it in person but they are not necessarily the places with the best CoC. So my question is, do you fly down to see a property before you purchase it or can the whole transaction happen without your presence? If yes, how comfortable are you with that? My wife insists that I must fly down there and see it in person before I put my money into it. Let me know your thoughts. Thanks in advance!

0 Votes

Hi Janea, welcome to this awesome community. I am new as well and have similar interests as you. Looking forward to meeting people who can provide leads in the Phoenix area.

0 Votes

Originally posted by @Doug McVinua:

@Ali Ahmed We manage multiple 4-Plex's in the Phoenix market and I can't think of one where an HOA is going to cover landscaping or electric on the property.

Are you sure about that? Trying to help protect you!

Let me confirm with my realtor about this. Appreciate your input.

0 Votes

All Forum Posts by: Ali Ahmed

Ali Ahmed has started 11 posts and replied 36 times.

Post: Looking to network with fellow out of state investors!

Post: Conventional loan on a 6-plex?

Post: Is this a decent deal?

Post: Analyzing 4 Plex in Phoenix

Post: Is this a decent deal?

Post: Is this a decent deal?

Post: Best Market Places to invest in for flipping or rentals?

Post: Buying properties out of state

Post: New Investor In Phoenix, AZ

Post: Is this a decent deal?