All Forum Posts by: Josh Young

@Sandy Sandy what is the address? if you post a link to the listing we can give you feedback. But I will say if you are not getting any applications it's usually priced too high, has bad photos, a bad description (terms), or it's not listed in the right places like the MLS or Zillow. Also, bigger more expensive properties take longer to rent in some markets.

 Talk to a lender and learn the basic rules of qualifying for a loan. Borrowing money is one of the most important parts of real estate investing. This will probably require maximizing your income, minimizing your debts and may require that you start in a single family and then work your way up to multi-family. Here is a post I did on how I became an investor, I hope this helps: https://www.biggerpockets.com/forums/61/topics/1096979-how-i...

You nailed it, that's the best way to acquire rental properties, you have to move every time, but well worth it. Here is a link to a post I did on this: https://www.biggerpockets.com/forums/61/topics/1096979-how-i...

The amount of equity you have has nothing to do with it, you could rent it out on airbnb as part of your house hacking while it's your primary residence if you wanted too (airbnb part of the home all the time or even airbnb the entire home while you are out of town on vacation), just make sure it is actually your primary residence if you say it is.

@Debbie Palmer I assume you are working with an experienced Qualified Intermediary for your 1031 exchange, it's very important that you follow the specific steps and timeline that the IRS has for the exchange.  

I have heard that Payson is not the best place for STR because you don't get many out of state visitors as most people out of state have never heard of Payson, so you get mostly just people from the Phoenix MSA, but I'm sure you can still be successful if you are a great operator with a great property. Looking on the MLS there are several furnished MTR rentals available, but hardly any LTR, so I would think that LTR could be a good opportunity.

@Mike M. I use Geico for my auto and all of my properties, they don't actually carry homeowners insurance, but they broker to several different companies, so I actually have different companies for different properties, but I still get the bundle auto discount, best available rates, and it's easy to keep everything straight even though there are several different carriers. Also, it's easy to shop for a cheaper rate every time a policy is up for renewal without having to switch anything except that specific policy.

That's a great question, here is a podcast episode with Maricopa County Assessor Eddie Cook that explains the FCV, it's basically a discounted market value, but you have to understand that there are literally millions of properties in Maricopa County, so it may be off a little, similar to how a Zillow Zestimate can be close, but not exact. At first glance if you can buy a property for less than the FCV then it could be a good deal, but will require more research to know for sure.

www.youtube.com/watch?v=sMzHYG2vZ-4

@Shahzad Ali you should be able to pay no points or even get a credit towards closing costs (negative points), but your interest rate will be higher.  This may be a good idea if you plan to refinance within the next couple/few years, but there will be more closing costs to refinance and there is also the risk that interest rates won't go down, so you just have to balance your outlook, risk tolerance/capacity, and your current/future cash positions.

@Carter Neal quitting your full-time job is going to set you back on investing if you plan to get conventional financing (typically the least expensive financing).  I would recommend buying at least one property before you quit your job, maybe something that you can house hack to help replace some of your income or at least help keep your expenses lower.

@Carlos Silva if you don't mind moving this is the best way to acquire rental property. The financing for a primary residence is much better than it is for an investment property, you can put less money down and you get a lower interest rate. What difference does it make if the loan is on your personal home or an investment property, it's still your debt.  Also, you will never own anything free and clear, you will always have property taxes and insurance (although insurance does become optional once the loan is paid off).

@Terra Ternet you should talk to a local Property Manager/Realtor to help you. They will determine fair market value and put a lease in place for you. You will need to contact your insurance company and update your policy to a landlord policy. I don't create LLC's for my rentals because I have found that the added protection from liability is minimal if any and it just makes financing much more expensive if you want to do any kind of refinance. I would highly recommend you use a CPA to do your taxes as they will likely save you more money than you will pay them. I would make sure you have 6+ months of PITI payments saved as reserves, maybe even an extra $10k to cover cap Ex depending on age and condition of the property. Also, if you are in an HOA you want to make sure that medium term rentals are allowed.