All Forum Posts by: Lanny K.

Seeking to sell a 2/1 SFR fixer in Huntington, WV.

ARV is $52k. It needs about $5k in electrical and plumbing repairs.

Asking $39k which includes a new dual-head mini split and used appliances.

Serious cash offers only.

 How do BP Pro members get the Invelo discount?

Want to earn great double-digit returns with minimal risk in about 6 months?

Would you feel good about helping veterans, first responders, and first-time home buyers afford a brand-new home?

Visit https://AmbientInvest.com to learn more and/or schedule a time to discuss this further at Calendly - Lanny D. Kimsey, Jr.

Seeking to find an affordable 2/1 Single Family Residence (SFR) in Tippecanoe County with a fenced-in yard. Must be open to realistic investor pricing.

@Zachary Caudill I may have a buyer. Direct message me the info.

Recommend checking into the San Diego Creative Investors Association at SDCIA.

Hi Phyo,

Happy belated veterans day, and thank you for your service to our great nation.  As an investor first, and a real estate agent second, (along with being a former Marine) I'd like to start by reminding you that during a down-turn real estate is only worth what you can rent it for so no matter where or what you buy be sure to understand the anticipated cash flow (also known as the Proforma).  While that may seem obvious, it's easy for new investors to disregard today's cash flow in lieu of our deep aspirations for future success when our current market is showing a trend of strong appreciation with exceptionally low interest rates.

I mentioned being a Marine earlier because as a Marine we were trained to always have multiple courses of action (COAs), as I'm sure you're well aware.  That said, when considering an investment property you may want to consider multiple COAs to achieve your goal(s).  For example, what would you do if our market conditions change before expected?  It's best to have a plan for that now as you don't want to be forced to sell a property during a down market because the cash flow didn't increase as much as anticipated.  That's not to say now isn't a good time to buy.  From a cash flow perspective, today's market is actually better even with the recent appreciation due to the extremely low interest rates than it was a year ago.

While there are opportunities in every market, most people start to invest with the people they feel the most comfortable working with.  Given your scenario, it seems like you're not planning to stay in San Diego so you're really looking at being an out-of-state investor either now or in the next few years.  If that's true, then you might consider looking at all investments from that perspective and build your relationships accordingly.

My two cents,

Lanny

Very insightful. Let's connect.

@Gregory Greene there are actually two DTI ratios that lenders take into account, Front-end and Back-end DTI. A quick search will guide you to better understanding the differences. The qualified mortgage dot org web site has a good description. From there you can find online calculators to help you analyze your personal finances in order to know what you may need to pay off before qualifying for your first investment.

Best of luck!

@David E., lots of good comments so far in this thread.  First and foremost, don't let the market conditions pressure you.

As a 20-year long-term and fix/flip investor, and a two-year real estate agent who puts my client's needs before my own, my initial questions are 1) What's your compelling event?  (i.e why do you want to move and/or buy?)  2) How clear are your financial and lifestyle goals?

Your answers should help you narrow down your decision criteria, which you'll need to know before you can identify an ideal property.  Once you know what you really want, then you can start to qualify your investment options.  As @Dan H. pointed out above, the devil is in the details.  Use BP to get very comfortable with understanding the ins-and-outs of ownership and run your numbers until you're fully confident in your decision.

As a long-term buy and hold investor, I personally only buy properties with an HOA if the property is in a very desirable area, well kept, has a monthly fee of less than $300 with no special assessments, and has a nice community pool/rec area, along with good schools like Scripps Ranch Highlands. Otherwise, I'll take care of my own landscaping and external repairs. But that's just my opinion based on my personal experiences. There's likely others reading this thread with experiences using higher priced HOAs and I think we'd all benefit from hearing their perspective, too.

As an agent, I'm seeing home prices slowly declining which is likely due to the current social distancing orders.  Nobody knows for sure what's going to happen next, but previous experience shows the intended benefits from large government stimulus packages are often hijacked by the banks.  If the stimulus money is mostly successful at staving off massive layoffs, then we'll likely see just a slight market correction.  However, if 30% of workers don't have much of an income for an extended period of time then we could see a more dramatic decrease in home prices.  If that occurs, it may take 12+ months before we see what the true impact is on the real estate market.  In the meantime, banks are tightening their lending requirements for loans as their rates continue to go down.  HELOCs are no longer available and current HELOCs are likely to be frozen.

Ultimately, your decision starts and ends with your goals.  Don't let anyone pressure you into anything before you're crystal clear on that, and the rest will follow.  Best of luck and happy investing!