All Forum Posts by: Kenny Kuramoto

Go the #2 route if you want to stay liquid and build wealth use the banks money! Especially now that we are about to experience a property value shock in the next 12-24 months. (In most areas). Use the down payment wisely if it does not benefit the rate/payment do not put more down. Recoup the funds after the renovations/ARV and lock in the lower rate for the long term hold.

Rates are a little shockng right now but not for the long term investors. In the long game they are irrelevant and can be refinance in 2-3 years when the players in the GOV/FED change hands.

Sounds good. Right now the heloc is at 5.49.. thanks for your input!

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Quote from @Danny Morrell:

Quote from @Eliott Elias:

Take out hard money, pay it for 6 months until you can cash out refi with a DSCR loan and recoup it

Im not sure what DSCR means. And am I likely to have enough equity to pull that off in 6 months?

I'm not trying to be mean so please dont get mad, but seems like you need to also watch youtube videos and read the forums more. You'll learn a lot on what people are doing by searching no money or low entry. even on reddit there are posts like that in the same situation. DSCR is Debt to Service Coverage Ratio. DSCR is the ratio of operating income available to debt servicing for interest, principal and lease payments. It is a popular benchmark used in the measurement of an entity's ability to produce enough cash to cover its debt payments.

I'm a newbie as well and still being a sponge.

0 Votes

Houston, Texas

I have a $200k HELOC ready to use just incase. Trying to get a better understanding of what I should do. I did some homework and going to list from least to most appealing and want the pro's thoughts.

1) Pay for a property in full assuming its less than $150k. I understand theres repairs and other things that might come up so $50k for emergency is what I'm keeping for that.
2) Pay Down Payment on a property. Make sure the numbers work with high Interest Rates ~8%-9%. The first two is kind of the same
3) Find a BRRR Property and find a team to help with the rehab. I know this is probably the ideal scenario as i have to find a property hope the ARV is big enough i can get the 75% back to cover my HELOC and to do it again.

I know I have more options but I can't think of it right now.....

Couple notes: I live in California. Kind of hard to invest in my Market. Thinking of Investing in OH or GA.

Goals is just to get cash flow positive. Ideally buy a property pay off HELOC and recycle. Thanks everyone!

2 Votes

Anyone invest out east of San Diego in El Centro or Imperial? Thoughts on how rentals are doing out there? I've been looking to see how I can try to invest locally and it seems like I'm priced out inside SD so was thinking of out near Brawley Hospital and Imperial. Maybe MTR or something like that is better options?

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San Diego, California

Quote from @Ben V.:

Grab some equity out. Only pull what you are comfortable paying for by yourself in case things go south. Spend it on real estate. There are turn keys a BRRRR properties out there. If you are experience in renovations then try that.

Cheers!

I'm in the same situation as OP. Issue I'm having is i can't BRRR locally in California. So if i do it out of state i have a lot more risk without a solid team.

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Whens the next one! I'm so bummed i missed out on this one

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San Diego, California

Quote from @Ali K.:

@Matt May

Thank you for your reply and the suggestions! I do think buying a duplex would be great but a few considerations: 1) multi family properties in San Diego are very expensive, 2) they need more money down that require me to sell more properties in Minneapolis, 3) their monthly mortgage payment is higher, perhaps beyond affordability, and 4) rent from the second unit May not make up for the higher PITI. I'm not opposed to it though and I would welcome more info on where in SD there are more MF properties that are worth considering.

I like your idea about selling my primary in Minneapolis. I was thinking of having it as a rental but maybe I should reconsider it for 1) its cash flow would be positive but not significant and 2) I could take advantage of capital gain tax benefits before turning it into a rental. Do you have more thought to share on this?

There are a couple multi that have 3 bed 1 bath duplex for 900k i think. can house hack if you want... another one for the same price thats a flip that has a 1 bed 1 bath adu. I forget the price but its there. PM for address and I can look it up. I live in SD so i always have alerts even though I don't buy here only my primary is here. :)

1 Vote

Quote from @Dan DiFilippo:

@Kenny Kuramoto how many subject books have you read? Maybe you should start there. You'll get more out of what you read on here.

Guys I'm not disappointed in my lack of knowledge. I'm learning more everyday. I'm just stating that I read the forums in the starting out section and it's not quality replies. I said it so many times in this thread.

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All Forum Posts by: Kenny Kuramoto

Kenny Kuramoto has started 18 posts and replied 68 times.

Post: First Investment property

Post: First Rental BRRRR in North Carolina

Post: HELOC for 2022/2023 How to start?

Post: Looking to start. Little cash on hand.

Post: HELOC for 2022/2023 How to start?

Post: Thoughts on El Centro, CA

Post: Looking for suggestions

Post: Ales and Assets, SD Future Flippers, and STR Nation REI Meetup

Post: New to San Diego, should I buy or rent?

Post: Starting to feel Disappointed