All Forum Posts by: Jarrid Weber

Hello BP Fam,

I am in a current stalemate with my next investment move, so I am looking for guidance! 

My primary residence has about $200K in equity and my monthly mortgage payment is $900 per month. Fortunately, I can rent the house out for $1,975 a month, which would lead to about $1,000 a month in cash flow. However, my lot is big enough that I considered adding an ADU. From my understanding, an ADU could run about $125/Sq. Ft. In short, a $100K ADU build could potentially rent for $1,000 a month. This would increase my property value, as well as improve cash flow for the long haul.

On the contrary my other option was to leave the house as is, rent it out, move to another house and use the cash flow to offset the cost of a new primary residence that will eventually become another rental (once I put some sweat equity into it).  

Any thoughts, suggestions or recommendations would be much appreciated! 

@Will Gaston thank you very much!

This is exactly what I needed.

Good Morning BP,

Looking to purchase my first out of state investment, but many articles I have read thus far indicate non owner occupied rentals in Richland Count (South Carolina) are taxed at 6%.  In evaluating the numbers on a property I am interested in, the purchase price is $74,500 which puts annual property taxes at $4,470 (6% of purchase price).

This eliminates all the cash flow.

Is 6% the correct assessment?

Any help on this topic would be appreciated. 

Good Morning BP Family,

Seeking some advice and clarity!

I am in the process of acquiring my first long term out of state buy and hold property, which I am very excited about.  However after finding an investor friendly agent and starting the conversation, I was sent a South Carolina Disclosure of Real Estate Brokerage Relationship. A few details about this client relationship is I am required to pay broker a brokerage fee which is greater of $2,500 or 3% of total purchase or lease price.  Additionally, there is a $595 transaction service fee paid at closing.   

Is this a normal agreement and is this a smart choice for my first investment? 

Please note, this broker is very experienced in investing, provides accurate ARV, comps and is well versed.

Is price per square foot an accurate assessment that a property is a good deal?

In looking at properties yesterday, one property was $221, one was $207, and the other was $188.

It seems as though the $188 per Sqft is under priced.

Thoughts?

Looking in Riverside, Moreno Valley, Inland Empire, Corona for single family rentals.

@Mercy Postema I assume you mean traditional lenders? If so, Judy Marburger at National Lending is the best in the game. Additionally, they are stationed in Corona, CA.

I used them for my current residence.

@Robert C. Thank you, I will absolutely apply that - “more is not always better”!!

@Aaron K. Thank you for the response!

Any suggestions for more applicable markets that allow cash flow?

I was also looking at Hemet, which seems to be a growing market. Last year, home prices appreciated 6.2% in Hemet versus 3% in Moreno Valley. Additionally, it seems low barrier to entry in Hemet, being medium home price is $300k.

Hello Bigger Pockets Members,

I live in Moreno Valley, CA and am looking to network.  I plan on attending a few local meetups, but figured it would be great to start meeting like indeed people online.  

Does anyone have any thoughts on live in flips?

In analyzing a few hundred deals this week, utilizing Bigger Pockets calculators, it seems you either have to find a short sale, off market deal or put a large down payment to get positive cash flow.  

  

Hello Bigger Pockets Members,

My name is Jarrid and I live in Moreno Valley, California. I am a newbie investor, with many years worth of analysis paralysis experience under my belt. Literally, it seems I have read every book, listened to every audio book, podcast, etc. Additionally, this is my first Bigger Pocket's post, which I am excited get started on. Real estate is a fascinating subject to discuss, with many techniques, strategies and leverage points based on personal choice and preference. For me, I own my current residence, which has $150K in equity, which I am looking to leverage at the moment. A part of my plan is to perform a cash out refinance to improve my ROI, purchase a new home to perform a live in flip and rent out my current house. Moreover, I have had the pleasure of meeting a few Realtors over the past few months; unfortunately, I have yet to find one whom is investor friendly. Zillow and Redfin have been very helpful for me. I found two short sales in the last three days that seemed like good deals: one was being sold for $399K in Corona, CA and the ARV based on comps seemed to be $509K. An offer was required in order for me to tour the property and perform due diligence. Unfortunately, by the time I pulled the trigger to make an offer it was under contract.

It seems to be a tough market right now; requiring creativity, ingenuity and a dedicated work ethic.  Although it is hard work, the most interesting part of real estate for me is having the opportunity to help families in need to find fair housing and simultaneously having the opportunity at a better life.

Lastly, I plan on attending the "Inland Empire Real Estate Investing Club", which seems to be a well known and reputable group here in the IE.        

I look forward to networking and working alongside all of you!