All Forum Posts by: Lamont Chen

@Roman Serebryakov

For multi-family properties generally I look to purchase distressed units with below market rents. That way when I fix it up and get tenants in to market rents I have added equity in the property. This is especially the case since 2-4 unit properties are investment the ROI is important for buyers and that is a high deciding factor in the overall sales price.

Someone whom is selling a "turnkey" property could be looking to get into a larger deal through 1031 exchange, retiring from REI game, flipping, etc.

Nothing wrong with purchasing a turnkey MF just little harder to force appreciation but probably easier and less headache.

@Prash Manohar

Found a pretty good article on BP which may help explain better.

https://www.biggerpockets.com/...

@Kellan Martz

I just keep looking for deals and buy when the numbers make sense that way even if the market "crashes" I still have a good amount of buffer. Also market crashes may impact certain areas more than others so there is that aspect as well.

If the market crashes I'll just buy more stocks & property.

Good luck!

@Dhondup Chime

750k sounds kind of high for a 2 family in Greenville and the owner is offering 50k in credit which makes me both happy for you and suspicious at the same time haha. Evicting a tenant now is a little tough because of COVID as your attorney pointed out.

Also with so much down payment, your mortgage will be $3200 and rental projections of $3600. There are lots of expenses you should try to budget in like vacancy, repairs, capex, utilities (in NJ the landlord pays common electric), legal, etc. so you could be in the red for quite some time. There is the appreciation and tax depreciation side as well but just my initial thoughts.

Also I am not sure if the bank preapproved you for 700k with 20% down as an owner occupant which can be an issue during underwriting because both units are occupied thus not owner occupant. I usually see 25% down for investment property with higher interest rates.

Feel free to DM me and we can chat further.

@Michael Wong

I was listening to a couple of episodes and I remember hearing "portfolio lending" and hard money loans as options to get around this situation. For portfolio lending you can probably speak to a local bank or credit union in Northern CA.

@Kirsten Milliken

You can try giving a loan provider whom has a national reach like Rocket Mortgage, Chase, etc.

I'm using Rocket Mortgage for one of my deals and have been pretty happy so far.

You can go back a bit further in time past 90 days but it would be less accurate. Another method for appraisal for investments would be the rent and cap rate you expect to have for this place vs other rentals in the market. Ideally you want something with a higher return than what is out there.

@Dean Smith

If you look at a similar home with an active listings but see a 200 day old listing priced at $###,000 then potentially that home can be overpriced or some other underlying issue. Sold homes gives you the indicator of what the market is doing. 

@Dean Smith

For ARV, you can look for similar homes recently sold in the past 30-90 days in the same area. Looking at active listings would not be as good because the list price can be over or under (bidding war) market value.

Good luck!

Population growth should continue in Chattanooga year over year!