All Forum Posts by: Jared Khan

Quote from @Nicholas L.:

@Jared Khan

hello - I am just going to be very direct.

it doesn't make sense to use expensive money to buy a random property thousands of miles away.  you will most likely just lose money.

to make this work, you'd have to buy something distressed, rehab it, and then refinance so all the short-term funds - HELOC, c/c transfer, etc. - were paid back. this is exceptionally difficult to do. i BRRRR locally and am having a hard time.

you don't want this answer, but the best down payment source is cash, and then holding the property for 50 years and being prepared to not net anything for 5-10 years as you stabilize it.

if i am missing something, let me know.

Thanks for the input. I hope the 50-year hold and not netting anything for 5-10 years is satire.

The very reasons that you gave for why BRRRR is difficult, are exactly why that's not my strategy. I've found some turnkey SFRs with market rents that appear to be more than enough to service all expenses, based on the finance amount. My rent data is also based on CoStar and other social media outlets' marketplaces. As I understand it, flipping/rehabbing requires you to have a solid team in place to minimize costs among other things. Not my target. My aim is slow and steady net cash flow.

Thank you all for your responses. The property prices that I'm looking at are all in the sub-$150k range. I do have a zero-leverage option which is taking out retirement funds early and $30k is tolerable for me.

Hi BP - long story short, my cash is tied up in illiquid assets at the moment. I do however, have full availability on my HELOC, various credit cards that are offering me 0% balance transfer checks for up to 12 months, and various retirement funds (Roth IRA, traditional 401k, etc.)

I'm already a homeowner in SoCal, but I want to buy my first LTR SFR someplace like Cleveland since the price point is attractive. Aiming for conventional and not a DSCR loan due to costs and the higher down payment requirement for the latter.

With that said, I'm curious to hear your take on what the most cost-effective & efficient approach would be to source a down payment. I personally like the credit card balance transfer check route, since it's interest-free for a decent amount of time (aside from an initial 3.00% fee).

How does one go about lowering capital gains tax from the sale of an investment property?

Some context: a relative bought a duplex as an investment property back in 2012, and are planning to sell it.
They don't live in the U.S. and have no other income to report aside from the rental income from the duplex (as reported on their Schedule E each year).

The intention/goal is to maximize cash proceeds one way or another; no 1031 exchange as they're not looking to buy anything with the proceeds post-sale.

There's still an outstanding balance on the mortgage; no other debt involved otherwise.

Any advice on the matter would be greatly appreciated...thanks!

BP - a close friend of mine has $100k liquid and wants to invest it RE with me. Preferably a long-term rental/hold, but flipping isn't out of the question should a deal present itself. Our idea was that I/we use the liquidity as a down payment, while the loan would be in my name.

His cash flow isn't strong or consistent since he owns a service business, but he has decent liquidity. On the other hand, I've had a steady job with a consistent W-2/cash flow, but lesser liquidity. I also bought my primary residence (condo) and have been house-hacking since day one. 

Other than buying a property with cash or going with a hard money lender, are there any ways we could qualify for financing? If securing a conventional 30-year is tougher than a bridge loan for flipping, then we may look into flipping instead.

BP,

I'm currently looking into refinancing my primary residence as my rate is high especially when compared to the current rate environment (30-year fixed at 4.75%; bought late Q1 2019).

The LTV is still >80% so whatever savings I do get from the reduction in P&I post-refi will be lessened a bit by whatever the amount of PMI I will have to pay is. Still, it's worth the savings over the life of the loan.

My question is:

Are there any lenders/credit unions/etc. that allow closing costs to be paid for using a credit card? If so - which ones?

I'm looking since at least one of my credit cards offers 2.00% cash back; may have one or more that offer a higher percent.

Thanks!

-J

Thank you both for your input. I'll do a bit of homework on the matter before I determine my next steps.

BP,

I've been lurking around for a fair amount of time and the material I've taken in here has helped me to where I am now. I purchased my first home in late 2018, and have been "house hacking" since day one. Never missed a payment; loan originator has already sold it to another bank.

Since then, I've moved up in my company with a decent increase in salary. I'm now wondering if I'd qualify for another primary residence mortgage if I move into the next property, and repeat the process (and thereby turning my current/first home from my primary residence to a Schedule E rental property).

How would I go about doing this, or where I can find out more info? Google and YouTube haven't gotten me anywhere over the last week or so - too much irrelevant info and I've yet to find anything specific on this particular situation.

I'm located in the Los Angeles/Orange County area (California), and would be seeking to buy another property out there - any advice or even leads to knowledgeable loan officers would be appreciated.

-Jared