All Forum Posts by: Kuvaal Patel

Statistically, I have seen a slight change in the Orange County market. I'm curious, for agents and investors, what, if any, statistical changes have you seen in the markets that you work in or invest in? 

Coach Scottie! 

The first section of the book I published last year is to help new buyers/investors understand where to start with Real Estate purchases. Crazy that in this entire forums section I see your post FIRST! Hope you're doing well. See you in Austin soon enough. Call or text me with any questions. I'd be happy to help. I'll send a copy of my book your way. 

Cheers

Hi Alex! I've done both - house hacking and out-of-state investments. There are some great answers here, and, if I were to offer my 2 cents, I would make this decision based on what you think your money could do in all situations. I'm no financial professional and this is not financial advice but just my opinion. Find a real estate team that will show you the projections (5-10 years out) of what your money will do in an LA house hack vs out of state investment. I have experience doing both as my personal investments. I'm making 18% and 17% COC returns on my 2 out of state investments (after over-budgeting for repair reserves) & 2% COC on my house hack FHA loan because only 3 of the 4 units are rented. Now, after I move out & rent the 4th unit, the COC will increase to 21%.

Explore the options and find an agent in your market that will break the real numbers down for you - each case is different mainly based on what loan you'd qualify for with what rates. 

I own a real estate business in LA, shoot my team an email if you'd like to see how we help educate our home buyers. 

I'm curious as to where other investors are moving/adding to their investing pipeline. I started with long-term buy-and-hold investing and added a BRRR last year. We've all heard some variation of the phrase, "jack of all trades means master of none." With that being said, I'm 'content' with my long-term portfolio and not actively deal-hunting like I was for the last 2 years; however, I will explore a long term deal if it passes my desk. I would like to turn a bit of my foucs to learn the STR model, potentially even an arbitrage STR model. From what I've seen this could scale quickly but will require a significant amount of leg work early on to create the systems. Where are other investors focused on investing this year and next? Do raising interest or inflation rates influence your thought process?

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $499,900
Cash invested: $5,000 (+ rehab costs) 

4 unit property
All units 2 bed / 1 bath
Strategy: BRRR / Long Term Hold

What made you interested in investing in this type of deal?

Wanted to utilize different loan types and jump into small multifamily

How did you find this deal and how did you negotiate it?

MLS - used an agent

How did you finance this deal?

OPM to buy (5k from me, strategic partner with remainder)
My money / cashflow to rehab (total rehab costs so far - $16,000 paid for by mix of my cash & rents collected as we placed tenants)

How did you add value to the deal?

Bought with 3 of 4 rented. Total collected monthly rent 3 units x $500 = $1500.

The empty unit was already renovated. Removed 3 tenants strategically to not bleed cash & renovated all 3 units. Now collecting $1,143, $1,200, $1,216, & $1,216

What was the outcome?

Depending on rates - will refi & pull cash out now or wait, but will be a long-term hold.