All Forum Posts by: J. Martin

@Moe C. , gotcha.

@Jennifer A. ,

I tell applicants that due to things like that in the past, I will continue to keep the posting up and market the property until the deposit is received and the lease signed. This makes sure you don't have to restart the process, and motivates the new tenant to act quickly if they are serious about it, IMHO.

Regarding over-improving. I pondered this a lot on my properties because I'm a long-term buy and hold investor. There are definitely benefits in higher rents, lower vacancies, hopefully longer tenancies with a nicely improved place. And you may tell yourself that it's improved the value of your property - which is true if its not worn out by the time you sell it. But if you hold it for a very long time, the present value of any realization upon sale is so small (for many extra improvements), its practically immaterial. So I like to focus on what it brings me today.. it's a constant balance..

Thanks for sharing!

If you don't miund everyone seeing it, but want to call a particular person's attention, you can type @before their name, then click their profile when it pops up at the bottom of the message box when you are typing their name..

@Navon Wallace

You can click "send PM" on the left hand side of their post, underneath their picture. This sends them a private message. (Or send them a colleague request with a message.)

1) Get preapproved (contact a bank or loan broker)

2) Tell them you will refer your friends, and your husband's wealthy work colleagues if they do a good job for you.

3) Newer agents tent to be "hungrier" for new business/connections. On the other hand, they will often have less experience, connections, and market knowledge..

Good luck!

@Adam Menconi ,

I'm doing my own investing in the Bay, so can't offer you any funds now. But just for clarification, I'm unclear if you're looking for equity or debt partners? I saw the first lien, implying a loan (with 10% interest?). But your edit makes it sounds like the return is variable, like equity..? Or some hybrid/kicker?

I might be more specific about what exactly it is you are offering / looking for..

@Nathan Anderson ,

You can always try some of the less expensive places in the Bay for better CF.. These are generally the places you probably would not be jumping to live.. Richmond, Pittsburgh, East Oakland, or more extreme, Stockton, Modesto.. within driving distance. Or Central Valley .. Or out of state..

The peninsula is on fire down there! Definitely would be hard to find cash flow there now I think..

@Brendan O. ,

I might have already told you, I'm extremely biased towards FHA because of the ability to leverage your capital. I agree with your comment. If you can save the cash, why not buy two?

BUT - you might run into problems with qualifying for the second loan, because either way, you likely won't have much CF if any in SF. So your w2 income needs to be high to get the second deal done. Maybe that's not an issue for you.. But an important thing to consider. Or you could always do a JV deal with someone that can qualify for the loan on the second deal. Part of the reason I bought my FHA 4plex in Richmond instead of Oakland or SF. Rent/price gets better and better as you go out..

I just realized, I closed on my 4plex exactly one year earlier than you.. 12/31/12. Hope you can do a repeat of mine... To your next 365 days being as good as my last..! Happy 2014!

Also, if one of you are a US veteran, you can get a VA loan for 0% down for owner-occupied. Then you can move and use it as a rental later, just like FHA, if you end up wanting to move somewhere else.. But again, not intended for investors.. Not sure about 2-4 unit with VA.. FHA for sure..

Alicia,

My first 4plex is producing good cash flow, as are a couple SFR's I own. I'll be writing a forum or blog post about 2013 performance after I wrap up my numbers for the year, so "follow" me if you'd like to hear about it.

I mostly buy vacant units because I like to rehab, pick my own tenants, and get top of market rents. I bought my 4plex FHA and 2 houses on 1 large lot w/ a 20% down conventional loan, split with a partner. (Property is a bit more expensive on the CA coast, so needed to team up to keep things going quickly..) I highly recommend FHA on a 4plex to make the most of your capital if you don't have a lot of it..