All Forum Posts by: Josh Young

@Geoff Regan you need to talk to a mortgage broker as they will have access to different loan products that will help you. The HELOC will be helpful, but you might also need to use something like a bank statement loan rather than a fannie/freddie conventional. Or you could stay living where you are, still rent out your guest house, and use the HELOC and a DSCR loan to buy an investment property. Either way, a mortgage broker will be able to help you.

@Gregory Robinson where are you located? What's the address of the property? Is it vacant? We will be able to help you if you provide this, or can at least point you in the right direction.

@Daniel Boone wouldn't you want to list it on the MLS with an Agent, so you get maximum exposure.

@Brian Berry have someone buy a lock box and put it on the water pipe on the front/side of the house with some keys in it and just give the combo to people who need it, maybe have someone change the combo every so often if you feel you need to.

@Bryan Place an appraiser might have a hard time getting comps that have an ADU, so they will most likely be conservative and only give you something like $100/sqft or maybe less, but if it's attached to the home and you make it accessible from the interior then the square footage can be counted as part of the home and it will likely be worth significantly more, something like $200+/sqft. Technically this means it's not an ADU, but I have heard of people doing this for the permit and appraisal and then closing off the interior connection to make it a rental and then just make it easy to re-open the interior connection when you go to sell if you still don't have comps to support the value.

@Brandon Lee 

either the property has declined in value, so the seller just wants out, 

or the buyer is paying a large down payment to the seller, 

or the buyer is making payments to the seller for that portion in addition to taking over the loan, 

or usually some combination of these.

@Max Boeskin I did the BRRRR with no rehab, it's a great way to start, probably the easiest and most realistic strategy for most people. Here is a link to how I built my portfolio, I think this will help you: https://www.biggerpockets.com/...

I really like the 10 and McCartney. I recommend the new builds, especially for my out of state investors because they are turn key with minimal maintenance and no cap ex for a while, also you can get a lower rate if you use the builder's lender.  If you have the resources for a rehab you can/might force some equity, but there is also more risk involved, especially if you are out of state, you need to really know the area in more depth so you can act fast when a deal comes up because they sell very quickly when they are a good deal, and you must know your numbers better as the financing becomes more complex and more expensive. 

The rent price of a new build is going to be similar because rent prices are primarily based on location, bed/bath count and sqft; obviously other things affect the price and quality of applicants too, but those are the big things.

I would say it will make a 15% difference, that's the problem with taxation it may seem nominal and insignificant, but in a state like California they are the example of taxes compounding. There is also a housing shortage and people want those residential homes to be used as residential homes, so this is a way to push some STR operators to sell or rent long term. Lucky they didn't outlaw STR like some cities have done, that would have made a bigger impact, but this way they generate some more tax revenue. You had to see something like this coming though.

@Jossy Mundo you will need to borrow money from a lender to buy a home and they will want to see your income on your tax returns to qualify.  My advice is to finish school, keep saving money, don't take on any extra debt and when you start making more money as a w-2 employee after college don't change your spending habits, just keep saving. You will also need to learn how to qualify for a mortgage, so talk to lender and they will help you create a plan. Here is what I did, this might help you: https://www.biggerpockets.com/...