All Forum Posts by: J Torres

It may be since the value of the loan is considered "low" to the big banks they're staying around a higher rate. Currently for Owner occupied I get 4.5 or below and 5-5.25 for investment properties with loans at 300K or higher, Check out a private local bank or chase who matches rates possibly.

@Juan Avalos I have a couple section 8 properties and have to say I love them. Great cash flow and I manage them my self. The thing is you have to stay on top of things if you're going to manage the tenants yourself as I find section 8 tenants need a little more attention but nothing extraordinary. With that said, you should run all your numbers on the BP calculator to get your actual net cash flow number. Make sure to factor in your cap ex, maintenance, fixup costs etc.... and if it hits your cash on cash return then why not?  Other things to consider beyond your return are the market the property is in, actual work/time you will dedicated to this and how you're going to finance this. 

Use all the information together and run your numbers then make a calculated decision based on the facts/numbers. Good luck!

Hey @Brad Hasseler,

Currently I'm using a HELOC to help fund the downpayment for my next multifamily. If the numbers tell you that you'll make more then what the payment for the HELOC is (plus a little more) then in my view it's a good thing to do. Now keep in mind that those dang things are variable so I go in with the intention of paying that sucker off just in case those rates keep going up but have a backup plan. Use conservative numbers on your estimates and if it still pays off then why not?

Cash is king so the more you have with you the more power you have. Leverage those assets but be conservative I say.

Doubling up on what @Bill B. said. Garett Sutton has a book, "Loopholes of Real Estate" which is awesome and covers this in great detail. Umbrella insurance for an "outside attack" and good property insurance for an "inside attack."

Just adding my two cents. Vegas has been absolutely terrific for me in terms of multi family. The past couple of months have been slow on listings but are already starting to pick up finally. I know my goal is to pick up another 2-3 properties this year then possibly look at another market but things are just too good right now for me at least. Most of the multi families here in Vegas are not in the most expensive areas of course but depending on how much value add is in the property you can definitely find a deal. The way it's looking by the end of this or next year pricing on these properties may be too high to get that cash on cash return that I look for. 

Hi @Bill B.

Thanks for responding. At first look I thought about a 4 or even an 8 plex on the parcel but I really like the layout of the duplex. Each unit is a 4bd 2ba with a sizable back yeard and 2 car garage. If I were to go with a 4plex or 8plex I'd have to eliminate the garages and backyards unless I made it a two story 4 plex but then my issue would be enough parking in the front of the property. I'd also probably have to reduce the room size as well and like the 4bd/2ba rent price currently. Not to say I wouldn't be open to the idea but visually I just cant see a configuration that gives the current rent price I'm shooting for besides the duplex model.  I'm prepared to take the time I'll need to get every step from A to Z down to replicate this process. 

Digging your idea about building bigger and more units. My plan would be to get this under my belt to move into that exact plan ie.. two duplexes on this parcel then a 4+ unit building(s). Atleast right now (from the contractors quoting around $80-$100 a sq ft to build) there's a bigger margin in building from scratch and using the property as a buy and hold. Plus the 4 unit cap could let me market to someone looking to purchase via freddie and fannie. 

@Deodat Ramdat so all in you'd be about 60K (I'd ad a buffer on this to be safe). If comps appraise for that or higher you could use the BRRR strategy and do a cash out refi once completed then use that for the next one. Use that biggerpockets calculator to factor in your numbers (cap ex, maintenance, vacancy, etc..) and if you're still making what you need or want I'd say go for it. It's all numbers my friend

Hi @Noah Lochner,  

Honestly depends on your strategy. Many would argue that having more properties is better as appreciation, tax incentives, etc.. would multiply plus you would be cash flowing from multiple properties not just one. But it all comes down to your numbers. Example: if putting 30K down on one home cash flows say $200 but putting $15K on each of two properties nets cash flows say $100 (assuming you ran your number correctly and any PMI etc. is added if applicable) you would be in the same position at the start but here's the thing. When rents go up say $50 you've effectively increased your cash flow by $100 if you had two properties instead of just $50 by having one you get me?

For me I'd be all about the cash flow later in life (with some still being needed obviously but it's a balance) but right now I focus on the future investment and returns. Hope that helps bud. Just my 2 cents.

Hi Deodat, Do you have some numbers on the property? Going to be hard to give you some thoughts unless I know the ROI, market rents, how much you need to fix it to rent, etc....

Hi Everybody,

Quick question for anyone that has gone through this or has any input. I recently bought a duplex in Vegas which cash flows terrific and have been contemplating buying the land parcel next to it (it is vacant with no utilities or foundation just dirt) and buying two of the same duplexes on it as it is two times bigger in size. I looked up zoning and it states its an R-1 single family. Anyone have any experience with rezoning to R2 (multifamily)? Plan would be to find a contractor to build two replicas of my duplex on this plot and would effectively be two buildings with the plot being used as a 4 plex. I'm a buy and hold guy with 3 rentals under my belt so this would be a big step for me having to basically build a home from scratch but am excited at the possibility. Any thoughts or comments would be appreciated or experiences you've had in the Las Vegas area doing something like this, thanks!