All Forum Posts by: Jonathan Taylor

Just came across this post and would enjoy to meet other LB investors. Has a time or place been setup for a meetup?

@Jeff Brower When I move out the property will cash flow and I am seeing those trends in interest rates.

@Shiloh Lundahl thank you for sharing, even though rates and costs are high, they will be higher later. I agree

@Charlie MacPherson good point. I'll bring this up with my agent and see what she says.

@Dylan Vargas Thanks! Ill keep folks posted how it goes, as what Im learning is head knowledge and will apply it to the real world

@Joe Splitrock Good breakdown. Thanks

@Amy A. You are correct but a caveat of the loan I would be purchasing it with requires me to live at the property. So WHEN I move out I would have to refinance to retain ownership. But either way, I am seeing that this angle will work if the numbers work out. 

@brent Coombs I totally agree. When I first started the application process I was very skeptical. It’s a NACA loan (neighborhood assistance corporation of America) and they offer no downpayment if you want to but they approve you off of what you can afford each month based on your financials. So if you have money for a downpayment, you can. Also, they do not put you in properties. I’m working with a realtor who is searching for what I’m looking for. NACA is simply my loan officer and under writer backed by Citibank and Wells Fargo. So I can buy points down, buy down the principal or simply not put any money down on a 30 yr at 3.8%. I understand that initial WTF moment as yes, it sounds sketchy but as I learn more about the program it’s checking out. Thanks for the concern.

@ben zimmer you bring up great points and I see what you’re saying. Thank you very much for your analysis and it looks like I should just ask How Can I afford places like this and not ‘I cant’. Cheers

@Yader Gomez yes, those numbers are fully occupied WITH me in one of the units (2 units rented, me occupying the third). The units are actually decent, some minor upgrades would be needed but no value-add that I could see. 

@Thomas S. You are correct. Its either throw money away on rent or get into a not-so-ideal situation here. 

@Jill F. The cash reserves would supply me with time and a cushion if anything went wrong for 6 months. And it would be cheaper than my current situation but not by much.

@Nate Burgher I agree. From thinking this out, I think its not the best choice. Its just the struggle of living in a crazy expensive city. This market is not for newbies.

@Nate Burgher

The final costs includes 5% vacancy, 5% repairs, 10 % management (although Ill be living there and managing the first few years) just REALLY hard to justify negative cash flow at that high cost. 

Rents would get me 3900 give or take and my costs are 4450. So Its not a HUGE loss but not cash flow so any big expense would wipe me out. 

I was going to put the 50K in a long distance cash flow property to offset the loss on this one. 

Again, not sold on this method as its risky at my early stages in REI.

Hi Folks,

I'd love some feedback as I'm going through the motions for my first property and I'm not sure the best route to take.

I'm involved in a loan program that, if I wanted to, could put ZERO money down on a multifamily property. I would be living in one unit and renting out the others. I have been running the numbers on all the properties in the 700s for tri/fourplex and none are cash flow. Ill be be paying 800-1500 out of pocket.

I'm in LA, it just isn't happening at my price point. So here is my question.

Should I buy a tri/fourplex for $700-800,000 with zero money down, then buy an investment property elsewhere (probably long distance) with the money I had been saving for a downpayment? 

OR 

Should I put that money toward the down payment of the multi family to reduce my overall mortgage? Its only 50,000 grand so the downpayment doesn't affect my mortgage all that much.

What do you think? What other info is needed to make the best choice here?

Thanks In advance

JT

Hey all, I’m going to be house hacking in LA and l need help running numbers for properties I’m finding on realtor. Here’s the property in question. $780,000 TRIPLEX. Separate bungalows, walking distance to metro, shops and decently desirable neighborhood. Very close to downtown. 1 x 3/1 2 x 2/1 (I’ll be living in one unit) Separate gas and electric meters. Landlord pays water and trash. 2/1s in the area are 1000 (low end) and 1995 top end so $1500 to be safe. 3/1s none in the area but 3/2s are 2650 ish. So I’m saying $2300. Total mortgage would be 4400 PITI (9500 taxes, 2500 ins) I’m putting 10% away for capex, repairs, maintenance, lawn care, etc monthly, or $440. Total: 4840. Rents: 3800 Cost: $1040 Since I’m house hacking, this is considered a win BUT I’m concerned I’m not putting enough away for capex, repairs, etc as I factored in 10% since it’s a 1970s building. Also, I’m unable to find reliable numbers to gauge trash and water, calling DWP didn’t help nor did the numbers I saw on trash bins in the area. What am I missing? Would you take this ‘deal’? First time investor and first project. Thanks in advance. JT

@Wes Blackwell I commend your persistence but I am only speaking from living there and the crimes I personally had in 'great' areas.

I lived on Euclid ave across the street from UOP. We had three home break-ins, one such stole our washer and dryer, two vehicles stolen from the driveway, and vandalism done to our house at least a few times. The other was on San Jose street across from victory park, also two home break-ins and two vehicle break ins. So yes, 'great' but again, I commend you for your dedication at Stockton so best of luck on your endeavors and please post your progress. This was the period from 1998-2010. 

Insure your stuff/property! It will be stolen a few times if not more.